Honeywell International Inc. awarded $54M for TIGER Program engine revitalization, a sole-source contract

Contract Overview

Contract Amount: $53,970,052 ($54.0M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2021-03-12

End Date: 2022-10-31

Contract Duration: 598 days

Daily Burn Rate: $90.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM. DELIVERY ORDER YEAR 1 DELIVERY ORDER NUMBER 2 HARDWARE.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85034

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $54.0 million to HONEYWELL INTERNATIONAL INC. for work described as: TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM. DELIVERY ORDER YEAR 1 DELIVERY ORDER NUMBER 2 HARDWARE. Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant investment in military vehicle sustainment through the TIGER program. 3. Fixed-price contract type aims to control costs, but sole-source nature raises concerns. 4. Delivery order represents a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. Contract performance period spans over 1.5 years, indicating a substantial project. 6. Focus on hardware for engine revitalization suggests critical component replacement or upgrades.

Value Assessment

Rating: questionable

Benchmarking the value of this specific delivery order is challenging without knowing the total contract ceiling and the scope of work for the entire IDIQ. However, the $54 million award for engine revitalization hardware, especially under a sole-source designation, warrants scrutiny. Without competitive bidding, it's difficult to ascertain if the pricing reflects fair market value. Comparisons to similar engine overhaul contracts for military vehicles would be necessary to assess cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Honeywell International Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct price comparison against other potential suppliers, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of a competitive environment. Without competing offers, the government cannot be assured it received the best possible price for these engine revitalization hardware components.

Public Impact

The Department of the Army benefits from the sustainment and modernization of its armored vehicle fleet. This contract ensures the availability of critical hardware for engine revitalization, maintaining operational readiness. The primary geographic impact is within the Department of the Army's operational units that utilize the affected vehicles. Workforce implications may include specialized technicians and engineers at Honeywell involved in the production and delivery of these components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the sole-source justification process could hide inefficiencies.
Dependence on a single contractor for critical hardware may pose supply chain risks.
The fixed-price nature, while intended to control costs, might not be optimal without competitive pressure.

Positive Signals

Contract supports critical military vehicle sustainment, ensuring operational readiness.
Award to a known entity like Honeywell suggests a reliance on established expertise.
Fixed-price contract type provides cost certainty for this specific delivery order.
The TIGER program itself indicates a commitment to maintaining aging military assets.

Sector Analysis

The defense industrial base relies heavily on specialized manufacturing and sustainment services for complex military equipment. Honeywell International Inc. is a major player in aerospace and defense, providing a wide range of products and services, including engine components and systems. This contract fits within the broader sector of defense manufacturing and maintenance, where significant government spending is directed towards ensuring the readiness and modernization of military assets. Comparable spending benchmarks would involve analyzing other contracts for similar vehicle component overhauls or engine MRO (Maintenance, Repair, and Overhaul) services within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Honeywell International Inc. suggests that the primary focus is on the prime's capabilities. This could limit opportunities for small businesses to participate directly in this specific contract, although they might be involved further down the supply chain if Honeywell utilizes them for component manufacturing or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger IDIQ, oversight would likely involve monitoring performance against the specific terms of the order, ensuring timely delivery of hardware, and verifying compliance with the fixed-price terms. Transparency regarding the justification for the sole-source award would be a key area for public and internal oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM
Department of the Army Vehicle Modernization Programs
Defense Logistics Agency (DLA) Sustainment Contracts
Armored Vehicle Component Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns without competition
Dependence on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.0 million to HONEYWELL INTERNATIONAL INC.. TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM. DELIVERY ORDER YEAR 1 DELIVERY ORDER NUMBER 2 HARDWARE.

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 $54.0 million.

What is the period of performance?

Start: 2021-03-12. End: 2022-10-31.

What is the track record of Honeywell International Inc. in fulfilling similar defense contracts, particularly those involving engine revitalization?

Honeywell International Inc. has a long and extensive history of performing defense contracts for the U.S. military, including work on engines and vehicle components. They are a major aerospace and defense contractor with significant expertise in complex systems. For engine revitalization specifically, Honeywell has been involved in various programs across different platforms, including aircraft and ground vehicles. Their track record generally indicates a capacity to deliver complex hardware and services. However, a detailed review of past performance on similar sole-source awards, on-time delivery rates, and quality metrics for engine-related components would be necessary for a comprehensive assessment. Past performance evaluations and contract award histories available through federal procurement databases would provide more granular insights into their specific success rates and any past issues encountered.

How does the $54 million award compare to the total value and duration of the overarching TIGER Program IDIQ contract?

The provided data indicates that this $54 million award is for 'Delivery Order Year 1, Delivery Order Number 2' under the TIGER Program. This suggests that the TIGER Program is likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which establishes a framework for multiple delivery orders over a period. The total value and duration of the overarching IDIQ contract are not specified in the data. Therefore, it's impossible to definitively state how this $54 million delivery order compares to the total potential value or the full contract period. This single delivery order represents a portion of the anticipated spending under the TIGER Program, and subsequent delivery orders could significantly increase the total expenditure.

What specific risks are associated with awarding this contract on a sole-source basis for military armored vehicle engine components?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, the government cannot be certain it is receiving the best value or the most cost-effective solution. Another risk is contractor dependency; if Honeywell is the sole provider of these critical engine components, any disruption in their production or supply chain could significantly impact military readiness. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single vendor, potentially stifling innovation from other capable companies. There's also a risk that the government may not be privy to the most efficient or advanced technological solutions available in the market.

What is the expected impact of this contract on the operational readiness and maintenance costs of the Army's armored vehicle fleet?

This contract is intended to directly improve the operational readiness of the Army's armored vehicle fleet by providing essential hardware for engine revitalization. Revitalizing engines ensures that vehicles are functional, reliable, and capable of performing their missions. By addressing engine health, the Army can reduce the likelihood of breakdowns in the field, thereby increasing the availability of combat-ready vehicles. Regarding maintenance costs, the impact is twofold. On one hand, revitalizing engines can prevent more costly repairs down the line and extend the service life of existing platforms, potentially saving money compared to procuring new vehicles. On the other hand, the cost of the revitalization hardware itself, especially under a sole-source contract, could be higher than if procured competitively, potentially increasing immediate maintenance expenditures.

How does the $54 million spending on engine revitalization hardware fit into the broader context of military vehicle modernization and sustainment spending?

Spending on engine revitalization hardware, such as this $54 million award, is a critical component of military vehicle sustainment. It falls under the umbrella of maintaining the current fleet's operational capability, often as an alternative or precursor to full vehicle modernization or replacement programs. Modernization efforts typically involve upgrading systems, adding new technologies, or completely overhauling vehicles, which can be significantly more expensive. Sustainment spending, like this contract, focuses on keeping existing assets functional and effective. This $54 million represents a targeted investment in the core power systems of armored vehicles, ensuring they remain viable assets. It reflects a strategic decision to invest in the longevity and performance of the existing fleet, potentially deferring or complementing larger modernization initiatives.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc

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: $53,970,052

Exercised Options: $53,970,052

Current Obligation: $53,970,052

Actual Outlays: $821,551

Subaward Activity

Number of Subawards: 170

Total Subaward Amount: $21,734,183

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0062

IDV Type: IDC

Timeline