DoD awards $11M for Jet Fuel Starter, a sole-source contract to Honeywell
Contract Overview
Contract Amount: $11,059,749 ($11.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-18
End Date: 2010-04-01
Contract Duration: 988 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JET FUEL STARTER (NON-PRIDE TO PRIDE)
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to HONEYWELL INTERNATIONAL INC. for work described as: JET FUEL STARTER (NON-PRIDE TO PRIDE) Key points: 1. Contract awarded to a single vendor, limiting competitive pricing. 2. High value contract for specialized aircraft parts. 3. Sole-source award raises concerns about price discovery. 4. Sector: Defense - Aircraft Parts.
Value Assessment
Rating: questionable
The contract value of $11,059,749 for a jet fuel starter is significant. Without competitive bids, 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 to Honeywell International Inc. This lack of competition likely resulted in a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding on this sole-source contract.
Public Impact
Essential component for Air Force aircraft operations. Potential for higher costs due to sole-source nature. Long contract duration (988 days) impacts long-term budget planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential defense procurement
- Established vendor
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts. Spending benchmarks for specialized components like jet fuel starters can vary widely based on technological complexity and market exclusivity.
Small Business Impact
The contract was not awarded to a small business, as indicated by the vendor being Honeywell International Inc. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further review of the justification for not competing the contract is recommended.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for overpayment
- Limited vendor options
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to HONEYWELL INTERNATIONAL INC.. JET FUEL STARTER (NON-PRIDE TO PRIDE)
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 Air Force).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2007-07-18. End: 2010-04-01.
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 unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed that Honeywell possessed exclusive rights or capabilities for this particular jet fuel starter, preventing a competitive procurement process.
How does the unit cost of this jet fuel starter compare to similar components in the market?
Direct comparison is challenging due to the sole-source nature of this contract. Without competitive bids, establishing a market benchmark is difficult. However, sole-source contracts often carry a price premium compared to competitively procured items, suggesting this unit cost might be higher than if multiple suppliers were involved.
What is the long-term risk associated with relying on a single supplier for this critical aircraft component?
The primary long-term risk is dependency on a single supplier, which can lead to price escalations, potential supply chain disruptions if the vendor faces issues, and limited options for upgrades or replacements. This also reduces leverage for the government in future negotiations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 1300 W WARNER ROAD, TEMPE, AZ, 04
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,059,749
Exercised Options: $11,059,749
Current Obligation: $11,059,749
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460100D0371
IDV Type: IDC
Timeline
Start Date: 2007-07-18
Current End Date: 2010-04-01
Potential End Date: 2011-04-01 00:00:00
Last Modified: 2010-04-06
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