DoD Awards $37M Honeywell Contract for Spare Delivery Orders Under 5-Year Requirements Contract
Contract Overview
Contract Amount: $36,994,990 ($37.0M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2024-12-27
End Date: 2029-12-17
Contract Duration: 1,816 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARE DELIVERY ORDER UNDER A 5 YEAR REQUIREMENTS CONTRACT
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46628
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $37.0 million to HONEYWELL INTERNATIONAL INC. for work described as: SPARE DELIVERY ORDER UNDER A 5 YEAR REQUIREMENTS CONTRACT Key points: 1. Contract awarded to Honeywell International Inc. for aircraft parts. 2. Significant value of $36.99 million over a 5-year period. 3. Requirement contract with a delivery order structure. 4. No small business participation indicated.
Value Assessment
Rating: fair
The contract is a delivery order under an existing requirements contract. Without knowing the terms of the original requirements contract or the pricing of comparable parts, it's difficult to definitively assess value. However, the duration and scope suggest a need for ongoing supply.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating it was likely awarded under specific circumstances, possibly as a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these spare parts compared to a fully competed scenario.
Public Impact
Ensures continued availability of critical aircraft spare parts for the Navy. Supports ongoing operations and maintenance of naval aviation assets. Potential for higher costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- No small business involvement
Positive Signals
- Ensures supply chain continuity
- Supports critical defense needs
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is crucial for maintaining military readiness, but often involves complex supply chains and specialized components.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses within the defense supply chain and could indicate a lack of outreach or specific requirements that favor larger corporations.
Oversight & Accountability
Oversight is needed to ensure the pricing within this delivery order is fair and reasonable, especially given the non-competitive nature. The Department of the Navy's contracting officers are responsible for monitoring performance and costs.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Non-competitive award
- Potential for inflated pricing
- No small business participation
- Long contract duration without clear performance metrics
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.0 million to HONEYWELL INTERNATIONAL INC.. SPARE DELIVERY ORDER UNDER A 5 YEAR REQUIREMENTS CONTRACT
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 $37.0 million.
What is the period of performance?
Start: 2024-12-27. End: 2029-12-17.
What was the justification for not competing this delivery order, and what steps were taken to ensure fair and reasonable pricing?
The justification for not competing this delivery order is not provided in the data. Typically, non-competitive awards are made under specific circumstances like urgent needs, sole-source justifications, or when only one source can fulfill the requirement. Agencies must document these justifications and conduct price analyses to ensure fair and reasonable pricing, often through cost breakdowns or comparison to historical data.
What is the potential cost impact to taxpayers due to the lack of competition for these spare parts?
The lack of competition can lead to higher costs for taxpayers. Without competitive bids, the contractor may not be incentivized to offer the lowest possible price. This could result in the government paying a premium for the spare parts, potentially increasing overall program costs and reducing the purchasing power for other essential defense needs.
How does this contract contribute to the overall effectiveness and readiness of the Department of the Navy's aviation assets?
This contract is crucial for maintaining the operational effectiveness and readiness of the Department of the Navy's aviation assets by ensuring a steady supply of necessary spare parts. Consistent availability of these parts prevents aircraft downtime, allowing for timely maintenance and deployment, which directly supports mission accomplishment and overall force projection capabilities.
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
Solicitation ID: N0038324R003D
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Resideo Technologies, Inc.
Address: 3520 WESTMOOR ST, SOUTH BEND, IN, 46628
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: $36,994,990
Exercised Options: $36,994,990
Current Obligation: $36,994,990
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $4,363,205
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038325DNM01
IDV Type: IDC
Timeline
Start Date: 2024-12-27
Current End Date: 2029-12-17
Potential End Date: 2029-12-17 00:00:00
Last Modified: 2025-03-05
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