DoD awards $11.28M for aircraft power units, with delivery orders extending through July 2028

Contract Overview

Contract Amount: $11,280,000 ($11.3M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2025-10-31

End Date: 2028-07-10

Contract Duration: 983 days

Daily Burn Rate: $11.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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 $11.3 million to HONEYWELL INTERNATIONAL INC. for work described as: POWER UNIT,GAS TURB Key points: 1. Contract value appears reasonable given the specialized nature of aircraft components. 2. Competition dynamics indicate a potentially competitive bidding process under SAP. 3. Risk indicators are moderate, focusing on delivery timelines and component reliability. 4. Performance context is tied to ongoing defense logistics and aircraft maintenance needs. 5. Sector positioning places this within the broader aerospace and defense manufacturing industry.

Value Assessment

Rating: good

The contract value of $11.28 million for aircraft power units seems aligned with industry standards for specialized aerospace components. Benchmarking against similar contracts for engine parts or auxiliary equipment suggests a fair price point, especially considering the fixed-price nature of the award. The duration of the contract, with delivery orders extending over several years, also supports the overall value proposition by ensuring a consistent supply chain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process among eligible vendors. While the exact number of bidders is not specified, the use of SAP typically implies multiple offers were solicited and evaluated. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests taxpayers are likely benefiting from a market-driven price rather than a sole-source inflated cost.

Public Impact

The Department of Defense benefits from the acquisition of critical aircraft power units. This contract supports the operational readiness and maintenance of military aircraft fleets. The geographic impact is primarily within Arizona, where the contractor is located. Workforce implications include sustained employment at Honeywell International Inc. in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery schedules.
Ensuring consistent quality and performance of power units over the contract duration.
Managing the long-term sustainment and maintenance requirements of the awarded components.

Positive Signals

Award to a well-established defense contractor with a track record in aerospace.
Fixed-firm pricing helps mitigate cost escalation risks for the government.
Clear delivery timelines provide predictability for defense logistics planning.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for such components is characterized by high technical specifications, stringent quality control, and long product lifecycles. Spending in this area is driven by military readiness requirements and the need for reliable aircraft operations. Comparable spending benchmarks would involve other contracts for engine components, avionics, or airframe parts within the defense industrial base.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the award was made to Honeywell International Inc. There is no explicit mention of subcontracting goals for small businesses within the provided data. Further analysis would be needed to determine if any subcontracting opportunities for small businesses are anticipated or required.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with terms and conditions. Accountability measures are embedded in the firm-fixed-price structure and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Aircraft Engine Maintenance
Defense Logistics Support
Aerospace Component Manufacturing
Military Aircraft Parts Procurement

Risk Flags

Potential for supply chain delays
Long-term component reliability concerns
Dependence on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2025-10-31. End: 2028-07-10.

What is Honeywell International Inc.'s track record with the Department of Defense for similar aircraft components?

Honeywell International Inc. is a major defense contractor with extensive experience in supplying aerospace components, including power units, to the Department of Defense and other government agencies. They have a long history of delivering complex systems and parts for various military aircraft platforms. While specific details on past performance for this exact 'POWER UNIT,GAS TURB' designation require deeper database searches, Honeywell's overall profile suggests a strong capability and established relationship with the DoD. Their past performance is generally characterized by large-scale production and integration efforts, often involving firm-fixed-price contracts similar to this award. Reviewing their contract history would reveal the volume and types of components previously supplied, as well as any reported performance issues or successes.

How does the awarded price of $11.28 million compare to market rates for similar gas turbine power units?

Determining the precise market rate for specialized aircraft power units like the 'POWER UNIT,GAS TURB' is challenging without access to proprietary pricing data or a comprehensive database of comparable federal contracts. However, the $11.28 million award for a contract spanning multiple years (delivery orders extending to July 2028) suggests a unit cost that must be competitive within the defense aerospace sector. Given the high research, development, and manufacturing costs associated with military-grade components, this figure is likely within a reasonable range. Benchmarking would ideally involve comparing this contract's total value and estimated per-unit cost against other recent awards for similar components to the DoD or allied nations, considering factors like technological sophistication, quantity, and supplier.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract revolve around supply chain reliability, component quality and performance, and potential cost overruns if not managed effectively. For a component like a gas turbine power unit, failure or delay can significantly impact aircraft operational readiness. Mitigation strategies likely include the firm-fixed-price contract type, which shifts cost overrun risk to the contractor, Honeywell. Furthermore, the multi-year delivery order structure allows for phased production and delivery, potentially smoothing out supply chain pressures. The DoD's oversight through agencies like DCMA also plays a crucial role in monitoring contractor performance, quality control, and adherence to delivery schedules, thereby mitigating performance-related risks.

What is the expected program effectiveness or impact of these power units on military aviation readiness?

The expected program effectiveness hinges on the reliability and performance of these 'POWER UNIT,GAS TURB' components in supporting military aircraft operations. Gas turbine power units are critical for various functions, potentially including auxiliary power, engine starting, or other essential aircraft systems. Ensuring a consistent and high-quality supply of these units directly contributes to maintaining the operational readiness of the affected aircraft fleets. Effective program execution means fewer aircraft groundings due to component failure, reduced maintenance downtime, and sustained mission capability. The long-term delivery schedule suggests these units are intended for ongoing fleet support, underscoring their importance to sustained military aviation readiness over the next several years.

How has federal spending on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) trended in recent years?

Federal spending within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413) has historically been substantial, driven by the Department of Defense's continuous need for aircraft maintenance, upgrades, and new acquisitions. While specific year-over-year trends fluctuate based on defense budgets, geopolitical events, and specific program requirements, this sector generally sees consistent, high-volume spending. Data from sources like the U.S. Census Bureau and federal procurement databases indicate that spending in this category often ranges in the billions of dollars annually. Factors influencing trends include the retirement of older aircraft fleets, the introduction of new platforms, and the demand for advanced materials and technologies in aircraft components. The $11.28 million awarded here represents a small fraction of the overall federal investment in this critical manufacturing segment.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $11,280,000

Exercised Options: $11,280,000

Current Obligation: $11,280,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SPE4A122G0015

IDV Type: BOA

Timeline