DoD awards $93.7M for TIGER III hardware, a sole-source contract for armored vehicle components

Contract Overview

Contract Amount: $93,744,398 ($93.7M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-28

End Date: 2025-09-30

Contract Duration: 825 days

Daily Burn Rate: $113.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TIGER III CONTRACT, YEAR THREE ORDERING PERIOD, HARDWARE DELIVERY ORDER 9

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85034

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $93.7 million to HONEYWELL INTERNATIONAL INC. for work described as: TIGER III CONTRACT, YEAR THREE ORDERING PERIOD, HARDWARE DELIVERY ORDER 9 Key points: 1. Contract awarded via sole-source justification, raising questions about price competition. 2. Significant award for armored vehicle components, indicating ongoing modernization efforts. 3. Long performance period of over two years suggests a sustained need for these parts. 4. Contractor has a substantial history with the Department of Defense. 5. Awarded as a delivery order under a larger indefinite-delivery contract. 6. Focus on hardware delivery implies a need for physical components rather than services.

Value Assessment

Rating: questionable

The contract value of $93.7 million for hardware delivery is substantial. However, without a competitive bidding process, it is difficult to benchmark the value for money. The firm-fixed-price structure offers some cost certainty, but the lack of competition means potential savings may have been forgone. Comparing this to similar sole-source awards for specialized military hardware would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Honeywell International Inc., was solicited. The justification for this approach is not detailed in the provided data but typically involves reasons such as unique capabilities, urgent needs, or prior development investments. The lack of competition limits the government's ability to explore alternative solutions or secure the most favorable pricing through a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding.

Public Impact

The Department of the Army benefits from the acquisition of critical hardware for its armored vehicle programs. This contract supports the modernization and maintenance of military equipment, ensuring operational readiness. The primary impact is on the defense industrial base and the specific supply chain for armored vehicle components. Work is likely to occur at Honeywell facilities, potentially impacting the workforce in those locations.

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 could mask underlying issues.
Dependence on a single contractor for critical components poses supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor like Honeywell suggests a degree of reliability and existing relationship.
Delivery order structure indicates it's part of a broader, potentially established program.

Sector Analysis

This contract falls within the defense industrial sector, specifically focusing on manufacturing and delivery of armored vehicle components. The market for such specialized military hardware is often characterized by limited players due to high barriers to entry, including technological expertise, security clearances, and established relationships with government agencies. Spending in this area is driven by defense modernization priorities and geopolitical factors. Comparable spending benchmarks would involve looking at other large hardware procurements for military vehicles.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific delivery order, as it was not set aside for small businesses and the prime contractor is Honeywell International Inc., a large corporation. There is no explicit information on subcontracting plans to small businesses. This contract's structure may not directly benefit the small business ecosystem unless Honeywell actively engages them for subcontracting opportunities.

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 contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

TIGER III Program
Department of the Army Armored Vehicle Procurement
Defense Hardware Manufacturing Contracts
Honeywell International Inc. Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Supply chain risk due to single-source provider.
Limited transparency in contract award justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.7 million to HONEYWELL INTERNATIONAL INC.. TIGER III CONTRACT, YEAR THREE ORDERING PERIOD, HARDWARE DELIVERY ORDER 9

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 $93.7 million.

What is the period of performance?

Start: 2023-06-28. End: 2025-09-30.

What is the historical spending pattern for the TIGER III program and Honeywell's involvement?

The provided data pertains to a specific delivery order within the TIGER III program for Honeywell International Inc. To understand historical spending, one would need to examine the parent indefinite-delivery contract and any previous ordering periods. This would involve analyzing total obligated amounts, number of orders placed, and the distribution of funds across different contractors if the TIGER III program is not solely reliant on Honeywell. Researching past contract awards and modifications for Honeywell with the Department of Defense, particularly related to armored vehicles, would also provide context on their long-term engagement and the scale of their contributions to such programs.

How does the unit cost of the hardware delivered under this contract compare to similar military vehicle components?

Benchmarking the unit cost for hardware delivered under this $93.7 million TIGER III contract is challenging without specific details on the exact components being procured. The 'hardware delivery' is broad. To perform a meaningful comparison, one would need to identify the specific part numbers, quantities, and specifications of the delivered items. Subsequently, these would be compared against publicly available pricing data for similar components procured by the Department of Defense or other allied nations, or against industry standard pricing for comparable commercial off-the-shelf (COTS) items if applicable. The sole-source nature of this award further complicates direct price comparisons, as competitive bids often drive down unit costs.

What are the specific risks associated with a sole-source award for critical military hardware?

Sole-source awards for critical military hardware present several risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it can reduce innovation, as there is less incentive for the sole provider to invest in developing superior or more efficient technologies. Thirdly, it creates a significant supply chain dependency; if the sole contractor experiences production issues, quality control failures, or financial instability, the military's ability to acquire essential components could be severely jeopardized. This dependence also limits the government's leverage in negotiations and contract modifications.

What is Honeywell International Inc.'s track record with the Department of Defense, particularly in armored vehicle manufacturing?

Honeywell International Inc. is a major defense contractor with a long-standing relationship with the Department of Defense. While primarily known for aerospace and other technologies, they also have capabilities and past performance in areas relevant to military vehicles, including advanced materials, electronics, and potentially powertrain components. Their track record typically involves large-scale, complex projects. A thorough review would involve examining their contract history for awards related to vehicle systems, armor, or related components, assessing past performance evaluations (e.g., CPARS), and identifying any significant issues or successes in previous dealings with the DoD, especially concerning armored vehicle programs.

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

This contract, valued at approximately $93.7 million for hardware delivery, is expected to positively impact the operational readiness of the US Army's armored vehicle fleet by providing necessary components for maintenance, repair, and potentially upgrades. The specific nature of the hardware will determine the precise impact; for instance, if it relates to critical systems like engines, transmissions, or protective armor, it directly addresses potential sustainment gaps. The delivery period extending to September 2025 suggests a sustained effort to bolster the fleet's capabilities. Ensuring a steady supply of these components is crucial for keeping vehicles mission-capable and reducing downtime.

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 Safety Products USA, 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: $93,744,398

Exercised Options: $93,744,398

Current Obligation: $93,744,398

Subaward Activity

Number of Subawards: 419

Total Subaward Amount: $3,554,422,172

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