DoD Awards $94M Honeywell Contract for TIGER III Year Three Hardware Delivery
Contract Overview
Contract Amount: $94,254,772 ($94.3M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-18
End Date: 2025-09-30
Contract Duration: 743 days
Daily Burn Rate: $126.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TIGER III YEAR THREE HARDWARE DELIVERY ORDER NUMBER TEN.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $94.3 million to HONEYWELL INTERNATIONAL INC. for work described as: TIGER III YEAR THREE HARDWARE DELIVERY ORDER NUMBER TEN. Key points: 1. Significant award to Honeywell for critical military hardware. 2. Lack of competition raises questions about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Focus on armored vehicle manufacturing within the defense sector.
Value Assessment
Rating: fair
The contract value of $94.25 million for TIGER III Year Three hardware delivery is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives for similar advanced military hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for this hardware, potentially leading to increased overall defense spending.
Public Impact
Direct impact on military readiness and modernization efforts. Supports advanced armored vehicle technology development. Economic impact on Honeywell and its supply chain in Arizona.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for overpayment without competitive benchmarking.
- Long contract duration (743 days).
Positive Signals
- Supports critical defense modernization.
- Award to established defense contractor.
Sector Analysis
This contract falls within the Defense sector, specifically military armored vehicle manufacturing. Spending in this area is crucial for national security but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The data indicates this award was not set aside for small businesses and was awarded to Honeywell International Inc., a large corporation. There is no indication of small business participation in this specific delivery order.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable. Robust justification for the lack of competition should be readily available.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price negotiation
- No small business set-aside
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.3 million to HONEYWELL INTERNATIONAL INC.. TIGER III YEAR THREE HARDWARE DELIVERY ORDER NUMBER TEN.
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 $94.3 million.
What is the period of performance?
Start: 2023-09-18. End: 2025-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair pricing, the agency should have conducted a thorough price analysis, potentially including historical pricing, cost breakdowns from the contractor, and comparisons to similar, albeit not identical, systems if available. Independent government cost estimates are also crucial.
What are the long-term cost implications of relying on sole-source contracts for critical military hardware like the TIGER III system?
Sole-source contracts can lead to higher costs over the long term due to the absence of competitive pressure. This can result in reduced innovation, less efficient production, and potentially inflated prices as the contractor faces no direct market alternatives. Over time, this can strain defense budgets and reduce the overall value for taxpayer investment.
How does this specific hardware delivery order contribute to the overall effectiveness and modernization goals of the Department of the Army's armored vehicle program?
This delivery order is part of the TIGER III program, which aims to modernize the Army's armored vehicle capabilities. The hardware delivered likely represents critical components or systems necessary for the operational readiness and technological advancement of these platforms. Its effectiveness is tied to the successful integration and performance of the TIGER III system in meeting evolving battlefield requirements.
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: $94,254,772
Exercised Options: $94,254,772
Current Obligation: $94,254,772
Subaward Activity
Number of Subawards: 368
Total Subaward Amount: $7,079,526,497
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
Start Date: 2023-09-18
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2024-05-22
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