DoD awards $24.2M for Gas Turbine Power Units to Honeywell, raising competition concerns
Contract Overview
Contract Amount: $24,234,992 ($24.2M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-05
End Date: 2028-05-31
Contract Duration: 999 days
Daily Burn Rate: $24.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: POWER UNIT,GAS TURB
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to HONEYWELL INTERNATIONAL INC. for work described as: POWER UNIT,GAS TURB Key points: 1. Significant contract value for specialized power units. 2. Sole-source award limits competitive pricing discovery. 3. Potential for higher costs due to lack of competition. 4. Manufacturing sector for turbine components is specialized.
Value Assessment
Rating: questionable
The contract value of $24.2M for gas turbine power units is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to less favorable pricing for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential power units.
Public Impact
Ensures critical power unit supply for naval operations. Potential for increased defense spending due to non-competitive award. Highlights reliance on specific manufacturers for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High contract value
Positive Signals
- Ensures critical equipment availability
- Long-term contract duration
Sector Analysis
This contract falls under the manufacturing of turbine and turbine generator set units. The sector is highly specialized, often involving complex engineering and proprietary technology, which can influence competition.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The specialized nature of gas turbine power units may limit opportunities for smaller enterprises in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for not seeking competitive bids. Oversight is needed to confirm the necessity of this approach.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Limited small business participation
- High contract value
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to HONEYWELL INTERNATIONAL INC.. POWER UNIT,GAS TURB
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 $24.2 million.
What is the period of performance?
Start: 2025-09-05. End: 2028-05-31.
What is the justification for the sole-source award of this $24.2M contract for gas turbine power units?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's presumed the Department of the Navy determined Honeywell possessed the sole ability to meet the specific technical or performance requirements within the necessary timeframe.
What are the potential risks associated with awarding a $24.2M contract on a sole-source basis for turbine power units?
The primary risk is the lack of competitive pressure, which can lead to inflated prices and reduced value for taxpayer money. It also limits opportunities for other capable manufacturers to compete, potentially stifling innovation and market competition in the long run. Furthermore, over-reliance on a single supplier can create supply chain vulnerabilities.
How does this sole-source award impact the overall effectiveness of the Department of Defense's procurement strategy for power units?
While sole-source awards can ensure timely delivery of critical, specialized equipment, they can undermine the overall effectiveness of procurement strategies that aim for cost savings and broader market engagement. Relying on non-competitive contracts may signal a need to re-evaluate sourcing strategies to foster more competition where feasible, ensuring long-term cost efficiency and technological advancement.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0038325RD040
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 111 S 34TH ST, 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: $24,234,992
Exercised Options: $24,234,992
Current Obligation: $24,234,992
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-05
Current End Date: 2028-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2025-09-08
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