DoD's $22.5M Contract for Aircraft Parts Awarded to Honeywell International Inc
Contract Overview
Contract Amount: $22,557,954 ($22.6M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-14
End Date: 2027-03-01
Contract Duration: 717 days
Daily Burn Rate: $31.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 1300 PISTON ASSY, HYDRAUL - 2275 STATOR DISC BRAKE - 5077 WHEEL AND BRAKE SYT
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46628
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to HONEYWELL INTERNATIONAL INC. for work described as: 1300 PISTON ASSY, HYDRAUL - 2275 STATOR DISC BRAKE - 5077 WHEEL AND BRAKE SYT Key points: 1. The contract is for critical aircraft components, including piston assemblies and stator discs. 2. Honeywell International Inc. is the sole awardee, raising questions about competition. 3. The contract's duration of 717 days suggests a significant need for these parts. 4. The award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: fair
The contract value of $22.5 million for 717 days needs further benchmarking against similar sole-source procurements for aircraft components. Without competitive bids, it's difficult to definitively assess if this price represents optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Honeywell International Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for these essential aircraft parts.
Public Impact
Ensures continued operational readiness for Navy aircraft by supplying essential components. Supports a major defense contractor, potentially impacting employment within the aerospace sector. Highlights the reliance on specific manufacturers for specialized aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. Spending in this area is crucial for maintaining military readiness, but often involves specialized components with limited suppliers.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense adequately justified the lack of competition and negotiated the best possible price.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Lack of small business participation.
- Dependency on a single supplier for critical components.
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 $22.6 million to HONEYWELL INTERNATIONAL INC.. 1300 PISTON ASSY, HYDRAUL - 2275 STATOR DISC BRAKE - 5077 WHEEL AND BRAKE SYT
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 $22.6 million.
What is the period of performance?
Start: 2025-03-14. End: 2027-03-01.
What justification was provided for the sole-source award, and was a thorough market analysis conducted to confirm the absence of viable alternatives?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was applied. A comprehensive market analysis is crucial to validate that no other capable sources exist for these specific aircraft parts. Without this information, it's difficult to ascertain if the government fully explored competitive options or if the sole-source determination was appropriate.
How does the unit cost of the piston assemblies and stator discs compare to industry benchmarks for similar components, especially considering the sole-source nature of the award?
Benchmarking the unit cost is challenging without specific part numbers and detailed specifications. However, sole-source contracts inherently carry a higher risk of inflated pricing due to the lack of competitive pressure. A thorough review of historical pricing for similar components, if available, and consultation with independent aerospace cost estimators would be necessary to assess value.
What is the potential impact on long-term aircraft maintenance and readiness if Honeywell remains the sole supplier for these critical components?
Sole reliance on a single supplier for critical components like piston assemblies and stator discs can create long-term risks. It could lead to supply chain vulnerabilities, price escalation over time, and limited options for innovation or alternative solutions. Diversifying the supplier base, where feasible, or establishing robust long-term agreements with clear price adjustment mechanisms would mitigate these risks.
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: N0038325RD008
Offers Received: 1
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: $22,557,954
Exercised Options: $22,557,954
Current Obligation: $22,557,954
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $869,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038320GV601
IDV Type: BOA
Timeline
Start Date: 2025-03-14
Current End Date: 2027-03-01
Potential End Date: 2027-03-01 00:00:00
Last Modified: 2025-04-24
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