DoD awards $73.5M to Honeywell for Military Armored Vehicle Manufacturing, a sole-source contract
Contract Overview
Contract Amount: $73,546,094 ($73.5M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2004-05-18
End Date: 2017-12-31
Contract Duration: 4,975 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $73.5 million to HONEYWELL INTERNATIONAL INC. for work described as: Key points: 1. Significant contract value of $73.5 million awarded. 2. Sole-source award indicates limited competition. 3. Long contract duration of nearly 14 years. 4. Focus on critical defense manufacturing sector.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar sole-source defense contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about the best use of taxpayer funds, as a more competitive process could have yielded better pricing.
Public Impact
Ensures continued production of vital armored vehicle components for national defense. Supports a major defense contractor and its supply chain. Potential for cost overruns due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Supports critical defense manufacturing
- Ensures supply chain continuity
Sector Analysis
This contract falls within the defense manufacturing sector, specifically for armored vehicles. Spending in this area is crucial for national security but often involves higher costs due to specialized requirements and limited suppliers.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract. The award to a large prime contractor like Honeywell suggests limited direct opportunities for SMBs.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure fair pricing and efficient use of funds. Regular performance reviews and cost audits would be advisable.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and potentially inflates costs.
- Long contract duration increases risk of cost overruns and obsolescence.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for contractor lock-in.
- Need for robust oversight to ensure value for money.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.5 million to HONEYWELL INTERNATIONAL INC.. See the official description on USAspending.
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 Army).
What is the total obligated amount?
The obligated amount is $73.5 million.
What is the period of performance?
Start: 2004-05-18. End: 2017-12-31.
What is the justification for the sole-source award, and how does it align with DoD's procurement regulations?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. For this contract, the Department of Defense would need to provide specific documentation demonstrating why Honeywell was the only source capable of fulfilling the requirement, adhering to regulations like the Federal Acquisition Regulation (FAR) Part 6.
How does the long contract duration impact the overall cost-effectiveness and potential for technological obsolescence?
A long contract duration, like the nearly 14 years here, can offer stability and predictability for both the contractor and the government. However, it also increases the risk of cost escalation over time and potential technological obsolescence if the equipment or components become outdated before the contract's end. Regular reviews and potential modifications are crucial.
What mechanisms are in place to ensure the quality and performance of the armored vehicle components under this contract?
Quality assurance is typically managed through contract clauses, performance standards, and government inspections. The Department of Defense would have quality assurance representatives (QARs) overseeing production, ensuring components meet stringent military specifications and performance requirements throughout the contract lifecycle.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV04R0215
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 111 S 34TH ST, 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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-05-18
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2020-05-29
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