DoD's $72.5M TIGER Engine Contract for Abrams Tanks Awarded Sole-Source to Honeywell
Contract Overview
Contract Amount: $72,464,670 ($72.5M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-01
End Date: 2012-08-12
Contract Duration: 193 days
Daily Burn Rate: $375.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM CONTRACT FOR THE SUSTAINMENT AND RESET OF 224 EACH AUTOMOTIVE GAS TURBINE (AGT) 1500 TIGER ENGINE EQUIVALENTS. THE TIGER PROGRAM SUPPORTS THE ABRAMS TANK PRODUCTION, ABRAMS DERIVATIVE VEHICLES AND ARMY STOCK SPARES.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034, UNITED STATES OF AMERICA
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $72.5 million to HONEYWELL INTERNATIONAL INC. for work described as: TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM CONTRACT FOR THE SUSTAINMENT AND RESET OF 224 EACH AUTOMOTIVE GAS TURBINE (AGT) 1500 TIGER ENGINE EQUIVALENTS. THE TIGER PROGRAM SUPPORTS THE ABRAMS TANK PRODUCTION, ABRAMS DERIVATIVE VEHICLES AND ARMY STOCK SPARES. Key points: 1. The contract focuses on sustaining and resetting 224 AGT 1500 TIGER engines, crucial for Abrams tanks and derivative vehicles. 2. Honeywell International Inc. is the sole awardee, indicating a lack of competition for this specific sustainment effort. 3. The contract's value of $72.5 million raises questions about cost-effectiveness given the sole-source nature. 4. This spending falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $72.5 million for engine sustainment and reset is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar engine overhaul services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning Honeywell International Inc. was the only provider considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this substantial contract may result in higher expenditures than if multiple vendors had vied for the work.
Public Impact
Ensures operational readiness of Abrams tanks by maintaining critical engine components. Supports the U.S. Army's logistical capabilities for armored vehicle fleets. Potential for increased costs due to sole-source award impacts overall defense budget allocation. Job creation and economic activity in Arizona, where Honeywell's facility is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of clear justification for sole-source procurement.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Supports critical military hardware sustainment.
- Ensures readiness of Abrams tank fleet.
- Awarded to a known defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Defense sector, specifically supporting armored vehicle manufacturing and sustainment. Spending benchmarks in this niche area are often driven by specific program requirements and limited supplier bases.
Small Business Impact
The contract was awarded directly to Honeywell International Inc. and there is no indication of subcontracting opportunities for small businesses in the provided data. This suggests limited direct impact or benefit for the small business sector in this specific award.
Oversight & Accountability
The 'DCA' award code suggests a Direct Commercial Agreement, which may have different oversight requirements than traditional federal contracts. Further investigation into the specific oversight mechanisms for this sole-source award is warranted.
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
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
- No small business participation indicated
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.5 million to HONEYWELL INTERNATIONAL INC.. TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM CONTRACT FOR THE SUSTAINMENT AND RESET OF 224 EACH AUTOMOTIVE GAS TURBINE (AGT) 1500 TIGER ENGINE EQUIVALENTS. THE TIGER PROGRAM SUPPORTS THE ABRAMS TANK PRODUCTION, ABRAMS DERIVATIVE VEHICLES AND ARMY STOCK SPARES.
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 $72.5 million.
What is the period of performance?
Start: 2012-02-01. End: 2012-08-12.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source procurements are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. A thorough review of the contract file would be necessary to understand the specific rationale employed by the Department of the Army in this instance.
How does the per-unit cost of engine reset and sustainment compare to industry benchmarks for similar turbine engines?
Without a competitive bidding process, establishing a precise benchmark is challenging. The contract value of $72.5 million for 224 engine equivalents suggests a significant cost per unit. Comparing this to publicly available data on similar engine maintenance contracts, especially those awarded competitively, would be necessary to assess cost-effectiveness.
What measures are in place to ensure accountability and prevent cost overruns given the sole-source nature of this contract?
Accountability in sole-source contracts often relies on robust contract management, clear performance metrics, and potentially independent cost analyses. The 'FIRM FIXED PRICE' contract type offers some cost certainty, but effective oversight by the Department of Defense is crucial to ensure the contractor meets all performance requirements and that the government receives fair value.
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: W56HZV12R0036
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
Financial Breakdown
Contract Ceiling: $72,464,670
Exercised Options: $72,464,670
Current Obligation: $72,464,670
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $83,584
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-02-01
Current End Date: 2012-08-12
Potential End Date: 2012-08-12 00:00:00
Last Modified: 2015-01-26
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