DoD Awards $42.3M Firm Fixed Price Order to Honeywell for TIGER III Hardware
Contract Overview
Contract Amount: $42,249,633 ($42.2M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-05
End Date: 2025-09-30
Contract Duration: 574 days
Daily Burn Rate: $73.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TIGER III YEAR FOUR HARDWARE DELIVERY ORDER ELEVENTH INCREMENT.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $42.2 million to HONEYWELL INTERNATIONAL INC. for work described as: TIGER III YEAR FOUR HARDWARE DELIVERY ORDER ELEVENTH INCREMENT. Key points: 1. Significant award for armored vehicle components, indicating ongoing modernization efforts. 2. Sole-source award to Honeywell raises questions about competition and potential price discovery. 3. Long-term delivery order suggests sustained demand for TIGER III program. 4. Focus on hardware delivery highlights a critical phase in military vehicle development.
Value Assessment
Rating: fair
The $42.3M award is a substantial sum for a single delivery order. Without comparable contracts for similar TIGER III hardware increments or alternative systems, assessing its value is challenging. The firm fixed price contract type aims to control costs, but the lack of competition limits price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Honeywell International Inc. This approach bypasses competitive bidding, potentially leading to higher prices than if multiple vendors had vied for the contract. The rationale for sole-sourcing is not provided but could be due to specialized technology or existing integration.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for this hardware. The full value of taxpayer funds is contingent on Honeywell's pricing efficiency without competitive pressure.
Public Impact
Enhances military armored vehicle capabilities through TIGER III program. Supports advanced technology integration in defense systems. Contributes to national defense readiness and modernization. Potential impact on supply chain for specialized military components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Lack of transparency on justification for sole-sourcing.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Firm fixed price contract aims to control costs.
- Award supports critical defense modernization program.
- Long-term delivery order indicates program stability.
Sector Analysis
This award falls within the Defense sector, specifically military vehicle manufacturing. Spending in this area is driven by national security needs and technological advancements. Benchmarks for similar large-scale hardware delivery orders for armored vehicles can vary significantly based on system complexity and quantity.
Small Business Impact
The awardee is Honeywell International Inc., a large corporation. There is no indication that small businesses were involved in this specific delivery order, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation is mandated or encouraged in other parts of the TIGER III program.
Oversight & Accountability
The Department of the Army awarded this delivery order under the TIGER III program. Oversight would typically involve contract management, performance monitoring, and financial accountability to ensure the hardware is delivered as specified and within budget. The sole-source nature warrants scrutiny to ensure fair pricing and necessity.
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 lacks competitive pricing.
- Potential for inflated costs due to lack of competition.
- Limited transparency on the necessity of sole-sourcing.
- Dependence on a single supplier for critical hardware.
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 $42.2 million to HONEYWELL INTERNATIONAL INC.. TIGER III YEAR FOUR HARDWARE DELIVERY ORDER ELEVENTH INCREMENT.
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 $42.2 million.
What is the period of performance?
Start: 2024-03-05. End: 2025-09-30.
What is the specific justification for awarding this contract as sole-source to Honeywell International Inc. for the TIGER III hardware?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or essential integration requirements that only one vendor can meet. Without specific documentation from the Department of the Army, it's presumed that Honeywell possesses unique expertise or intellectual property related to the TIGER III system that makes competitive procurement impractical or detrimental to program objectives.
How does the unit cost of this TIGER III hardware compare to similar armored vehicle components or previous TIGER III increments, given the sole-source nature?
Direct comparison is difficult due to the sole-source award and lack of publicly available cost breakdowns for this specific increment. While the firm fixed price contract aims to cap costs, the absence of competition means there's no market-driven benchmark to assess if the price is optimal. Historical data from previous TIGER III increments, if available and comparable, would be the closest proxy, but variations in hardware specifications could still skew comparisons.
What is the long-term strategic value and effectiveness of the TIGER III hardware being procured under this order for the Department of Defense?
The TIGER III hardware is intended to enhance the capabilities of the U.S. Army's armored vehicle fleet, likely focusing on improved protection, mobility, lethality, or network integration. Its strategic value lies in modernizing key combat platforms to maintain a technological edge and ensure operational effectiveness in current and future threat environments. The effectiveness will be measured by its performance in training and potential deployment scenarios.
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: Resideo Technologies, 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: $42,249,633
Exercised Options: $42,249,633
Current Obligation: $42,249,633
Subaward Activity
Number of Subawards: 202
Total Subaward Amount: $23,013,147
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: 2024-03-05
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2024-04-25
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