DoD awards $24.1M for POP 2 PBL Support to Honeywell, raising concerns about competition and value
Contract Overview
Contract Amount: $24,137,333 ($24.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2021-03-15
End Date: 2022-03-16
Contract Duration: 366 days
Daily Burn Rate: $65.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: POP 2 PBL SUPPORT
Place of Performance
Location: TEMPE, MARICOPA County, ARIZONA, 85284
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to HONEYWELL INTERNATIONAL INC. for work described as: POP 2 PBL SUPPORT Key points: 1. Significant contract value of $24.1M for aircraft parts support. 2. Sole-source award to Honeywell International Inc. limits competitive pricing. 3. Potential risk of overpayment due to lack of competition. 4. The 'Other Aircraft Parts' sector often sees specialized, high-value contracts.
Value Assessment
Rating: questionable
The contract value of $24.1M for a 12-month period is substantial. Without competitive benchmarking, it's difficult to assess if this price is reasonable compared to similar Performance-Based Logistics (PBL) support contracts for aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Honeywell International Inc., was considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not be receiving the most cost-effective solution for this critical support.
Public Impact
Taxpayers may be overpaying for essential aircraft parts support due to the sole-source nature of the award. The Department of the Navy relies on Honeywell for critical components, potentially creating vendor lock-in. Lack of transparency in pricing due to limited competition hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency
Positive Signals
- Contract awarded to established vendor
- Supports critical defense needs
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which often involves specialized components for military aircraft. Spending in this area can be high due to the unique requirements and limited number of qualified suppliers.
Small Business Impact
The contract was awarded to Honeywell International Inc., a large corporation, and there is no indication of small business participation. This award does not appear to support small business initiatives.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable. Accountability for the justification of not competing the contract should be clearly established.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for overpayment due to limited price discovery.
- Lack of transparency regarding the justification for sole-sourcing.
- No indication of small business participation.
- Vendor lock-in risk for critical aircraft parts.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to HONEYWELL INTERNATIONAL INC.. POP 2 PBL SUPPORT
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.1 million.
What is the period of performance?
Start: 2021-03-15. End: 2022-03-16.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without specific documentation, it's difficult to ascertain the exact reasoning, but it often points to a perceived lack of alternatives or a desire for continuity with an existing provider.
How can the Department of the Navy ensure fair pricing without competition for this contract?
Even in sole-source situations, the government can employ various methods to ensure fair pricing. This includes conducting thorough cost and price analyses, negotiating aggressively, obtaining data from other similar contracts (if available), and potentially engaging independent cost estimators. Robust internal review processes are crucial to validate the reasonableness of the proposed price.
What is the long-term risk associated with relying on a sole-source vendor for critical aircraft parts support?
The long-term risk includes potential price escalation over time as competition is absent, reduced innovation from the vendor due to lack of market pressure, and increased dependency on a single supplier. This can also limit the government's flexibility in adopting new technologies or changing support strategies, potentially impacting operational readiness and increasing overall lifecycle costs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 1944 E SKY HARBOR CIR, PHOENIX, AZ, 85034
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,137,333
Exercised Options: $24,137,333
Current Obligation: $24,137,333
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038320DWP01
IDV Type: IDC
Timeline
Start Date: 2021-03-15
Current End Date: 2022-03-16
Potential End Date: 2022-03-16 00:00:00
Last Modified: 2025-05-30
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