Honeywell awarded $26.9M for Integrated Intra Squad Radio (IISR) systems by the Department of the Navy

Contract Overview

Contract Amount: $26,897,255 ($26.9M)

Contractor: Honeywell Hearing Technologies AS

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2008-04-25

Contract Duration: 211 days

Daily Burn Rate: $127.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INTEGRATED INTRA SQUAD RADIO (IISR)

Plain-Language Summary

Department of Defense obligated $26.9 million to HONEYWELL HEARING TECHNOLOGIES AS for work described as: INTEGRATED INTRA SQUAD RADIO (IISR) Key points: 1. Contract value represents a significant investment in tactical communication technology. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The short performance period (211 days) indicates a focused, potentially urgent, delivery requirement. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. This procurement falls within the audio and video equipment manufacturing sector.

Value Assessment

Rating: fair

The contract value of $26.9 million for Integrated Intra Squad Radio (IISR) systems appears substantial for a single award. Benchmarking against similar tactical communication systems is difficult without more specific technical details. However, the firm-fixed-price structure suggests the government sought to control costs upfront. The relatively short duration of the contract (211 days) might imply a need for rapid deployment or a specific project phase, which could influence the per-unit cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of competitors could potentially drive prices lower and foster greater innovation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, which can lead to more competitive pricing and better value.

Public Impact

The primary beneficiaries are U.S. Navy personnel who will utilize the IISR systems for enhanced battlefield communication. The contract delivers advanced audio and video equipment manufacturing capabilities. The geographic impact is likely focused on naval operations and deployment locations. This contract supports jobs within the defense manufacturing and technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for all development and production expenses.
Risk of technology obsolescence if the IISR systems are not designed with future upgrades in mind.
Dependence on a single contractor for delivery within a tight timeframe could lead to delays if unforeseen issues arise.

Positive Signals

The firm-fixed-price contract type transfers cost risk to the contractor, potentially saving taxpayer money.
Awarding under full and open competition suggests a thorough vetting of potential suppliers.
The contract specifies a clear deliverable (IISR systems), providing a defined scope of work.

Sector Analysis

This contract falls within the broader defense electronics and communication systems sector. The market for tactical communication equipment is characterized by high technological barriers to entry and significant R&D investment. Companies like Honeywell are established players in this space, often competing for large government contracts. Spending in this area is driven by the need for secure, reliable, and advanced communication capabilities for military operations.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. The award to Honeywell, a large corporation, suggests that small businesses were likely not the primary focus of this specific procurement, though they may participate as subcontractors.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. Accountability is ensured through the firm-fixed-price contract terms and delivery schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Radio Systems
Squad Radio Communications
Military Communication Equipment
Department of Defense Procurement

Risk Flags

Short contract duration may indicate urgency or a specific project phase.
Limited competition (2 bidders) could impact price discovery.
Lack of detail on specific technical capabilities makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to HONEYWELL HEARING TECHNOLOGIES AS. INTEGRATED INTRA SQUAD RADIO (IISR)

Who is the contractor on this award?

The obligated recipient is HONEYWELL HEARING TECHNOLOGIES AS.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2007-09-27. End: 2008-04-25.

What is the specific technical capability of the Integrated Intra Squad Radio (IISR) system?

The provided data does not detail the specific technical capabilities of the Integrated Intra Squad Radio (IISR) system. However, based on its name and the context of military procurement, it is likely designed to provide secure, short-range voice and potentially data communication between individual soldiers or small units within a squad. Such systems typically focus on features like encryption, jam resistance, ruggedness for battlefield conditions, and ease of use. Further technical specifications would typically be found in the contract's statement of work or technical exhibits, which are not publicly available in this dataset.

How does the $26.9 million contract value compare to other similar procurements for squad radio systems?

Direct comparison of the $26.9 million contract value for the Integrated Intra Squad Radio (IISR) is challenging without knowing the exact quantity of units procured and the specific technological features included. However, for context, major military radio system procurements can range from tens of millions to billions of dollars depending on the scope, technology generation, and number of units. A single award of $26.9 million for a specific system like IISR, especially with a short performance period, suggests it might be for a particular fleet upgrade, a new system introduction, or a specific operational need rather than a large-scale, multi-year program. The firm-fixed-price nature also implies the cost was determined upfront.

What are the potential risks associated with a firm-fixed-price contract for advanced radio technology?

Firm-fixed-price (FFP) contracts are generally preferred for their cost certainty, as they shift the risk of cost overruns to the contractor. However, for advanced technology like radios, potential risks include the contractor underestimating development or production costs, leading to potential quality compromises to maintain profitability, or demanding change orders if unforeseen technical challenges arise. If the initial price was set too low due to aggressive bidding, the contractor might struggle to deliver the full scope or quality. Conversely, if the price was set too high, taxpayers may have overpaid. The short performance period here might mitigate some long-term risks but could increase pressure on timely delivery.

What is the track record of Honeywell Hearing Technologies AS in delivering defense communication systems?

Honeywell Hearing Technologies AS, as part of the larger Honeywell conglomerate, has a significant track record in providing various technologies and systems to the defense sector. While 'Honeywell Hearing Technologies' might be a specific division or subsidiary, Honeywell International Inc. is a well-established defense contractor involved in aerospace, defense, and security solutions. They have historically supplied communication systems, avionics, and other critical components for military platforms. Their experience suggests a capacity to handle complex defense contracts, though the specific performance on this IISR contract would depend on the execution details and adherence to the defined scope and schedule.

How has spending on tactical communication systems evolved within the Department of the Navy over time?

Spending on tactical communication systems within the Department of the Navy has evolved significantly, driven by technological advancements and changing operational requirements. Historically, spending focused on analog radio systems, evolving towards digital, encrypted, and networked communication solutions. The Navy, like other branches, has invested heavily in systems that provide secure, reliable, and interoperable communication across various platforms and environments, from shipboard to dismounted infantry. This includes upgrades to existing systems and procurement of new technologies like the IISR. Budgetary allocations for such systems fluctuate based on strategic priorities, threat assessments, and modernization programs, often involving multi-year procurement strategies.

Industry Classification

NAICS: Manufacturing › Audio and Video Equipment Manufacturing › Audio and Video Equipment Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523607R0139

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: SLUPPENVEGEN 12 E, TRONDHEIM

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,897,255

Exercised Options: $26,897,255

Current Obligation: $26,897,255

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline