DoD Awards Honeywell $9.86M for TIGER III Year Four STS Service Efforts
Contract Overview
Contract Amount: $9,860,293 ($9.9M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2023-12-20
End Date: 2028-03-31
Contract Duration: 1,563 days
Daily Burn Rate: $6.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TIGER III YEAR FOUR STS SERVICE EFFORTS.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to HONEYWELL INTERNATIONAL INC. for work described as: TIGER III YEAR FOUR STS SERVICE EFFORTS. Key points: 1. Contract awarded to a single, large business vendor. 2. Significant contract duration of over 4 years. 3. Cost Plus Fixed Fee contract type may incentivize higher costs. 4. No small business participation noted.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while providing flexibility, can lead to cost overruns if not closely managed. Benchmarking against similar service contracts for advanced military systems is difficult without more detailed cost breakdowns.
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 potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for this significant award raises concerns about the best use of taxpayer funds.
Public Impact
Ensures continued support for critical military technology (TIGER III). Potential for increased costs due to sole-source, CPFF contract. Lack of small business involvement limits economic opportunity. Long contract duration ties up significant funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation
- Long contract duration
Positive Signals
- Supports critical defense systems
- Experienced vendor
Sector Analysis
This contract falls within the Defense sector, specifically related to military vehicle components. Spending in this area is often characterized by long-term sustainment contracts and specialized, high-cost components.
Small Business Impact
There is no indication of small business participation in this contract. This represents a missed opportunity to leverage small business capabilities and promote economic growth.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost reasonableness and effective performance throughout the contract's duration.
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
- Cost Plus Fixed Fee contract type
- No small business participation
- Long contract duration
- Potential for cost overruns
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, az, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to HONEYWELL INTERNATIONAL INC.. TIGER III YEAR FOUR STS SERVICE EFFORTS.
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 $9.9 million.
What is the period of performance?
Start: 2023-12-20. End: 2028-03-31.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure value for money?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. The fixed fee in a CPFF contract is negotiated based on estimated costs and a target profit. Without detailed cost data and a competitive process, verifying the reasonableness of this fee and ensuring optimal taxpayer value is challenging.
What are the specific risks associated with the Cost Plus Fixed Fee contract type in this context, and how are they being mitigated?
The primary risk of CPFF is that the contractor may have less incentive to control costs, as the government bears the cost plus a fixed profit. Mitigation strategies include robust government oversight, detailed cost tracking, performance metrics, and clear deliverables. However, the effectiveness of these measures depends heavily on the agency's resources and diligence.
How does this contract contribute to the overall effectiveness and readiness of the TIGER III program, and what are the performance metrics?
This contract provides essential service efforts for the TIGER III program, likely crucial for its operational readiness and sustainment. Effectiveness is typically measured through performance metrics such as on-time delivery of services, quality of work, and achievement of technical objectives. Specific metrics should be clearly defined in the contract to ensure accountability and measure program success.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $9,860,293
Exercised Options: $9,860,293
Current Obligation: $9,860,293
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $639,401
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: 2023-12-20
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-12-19
More Contracts from Honeywell International Inc.
- Federal Contract — $1.8B (Department of Defense)
- Tiger II Services and Hardware UCA — $1.2B (Department of Defense)
- Aircraft Engines/Engine Parts — $934.2M (Department of Defense)
- Non-Personal Services - Secondary Power Logistics Solution (spls) — $798.7M (Department of Defense)
- 200607!000110!5700!fa8626!asc/Lpk !FA862606C2065 !A!N! !N! ! !20060425!20070122!195908637!195908637!139691877!n!honeywell Intl !13350 US Highway 19 North !clearwater !fl!33764!12875!103!12!clearwater !pinellas !florida !+000000398530!n!n!000121531465!5895!miscellaneous Communication Equipment !A7 !electronics and Communication Equip !000 !NOT Discernable !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !c!n!j!1!001!n!1a!a!y!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $451.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)