DoD Awards $22.1M Follow-On Task Order to Honeywell for Eagle-M Phase 2
Contract Overview
Contract Amount: $22,129,507 ($22.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-18
End Date: 2026-01-29
Contract Duration: 1,260 days
Daily Burn Rate: $17.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FOLLOW-ON TASK ORDER FOR EAGLE-M PHASE 2
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $22.1 million to HONEYWELL INTERNATIONAL INC. for work described as: FOLLOW-ON TASK ORDER FOR EAGLE-M PHASE 2 Key points: 1. This award represents a significant follow-on investment in the Eagle-M program, indicating continued reliance on Honeywell's capabilities. 2. The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The sector is focused on advanced navigation and guidance systems, critical for defense operations.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, without clear benchmarks or competitive pressure, makes it difficult to assess value. The awarded amount of $22.1M for a 1260-day duration suggests a substantial investment, but the lack of competitive pricing data hinders a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach bypasses the price discovery benefits of a competitive bidding process, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for the goods and services provided.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The reliance on a single contractor for critical navigation systems could pose a long-term risk. The program's success hinges on effective oversight of the Cost Plus Fixed Fee contract. Investment in advanced defense technology highlights national security priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Follow-on award indicates program success
- Critical defense technology development
Sector Analysis
The Department of the Army's investment in navigation and guidance systems falls within the broader aerospace and defense sector. Spending in this area is often driven by technological advancement and national security requirements, with significant government funding allocated to R&D and procurement.
Small Business Impact
There is no indication that small businesses were involved in this specific task order. The award to a large prime contractor like Honeywell suggests that subcontracting opportunities for small businesses may be limited or not explicitly detailed in this award notice.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of Defense to ensure costs are reasonable and the fixed fee is justified. Accountability will depend on the agency's ability to monitor expenditures and performance effectively throughout the contract duration.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost Plus Fixed Fee structure increases risk of cost overruns.
- Potential for contractor lock-in due to specialized nature of work.
- Limited transparency on subcontracting opportunities for small businesses.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to HONEYWELL INTERNATIONAL INC.. FOLLOW-ON TASK ORDER FOR EAGLE-M PHASE 2
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 $22.1 million.
What is the period of performance?
Start: 2022-08-18. End: 2026-01-29.
What specific performance metrics or milestones are in place to ensure the 'fixed fee' portion of this Cost Plus Fixed Fee contract is earned and justified?
The effectiveness of the 'fixed fee' in a Cost Plus Fixed Fee (CPFF) contract is directly tied to the achievement of specific, measurable performance objectives and milestones outlined in the contract. Robust oversight by the contracting officer is crucial to verify that these targets are met before the fixed fee is disbursed. Without clear performance indicators and diligent monitoring, the 'fixed' aspect of the fee loses its incentive value, potentially leading to inflated costs without commensurate performance gains.
Given the sole-source nature of this award, what steps are being taken to mitigate the risk of inflated pricing and ensure fair market value?
Mitigating inflated pricing in sole-source awards requires proactive measures such as thorough cost realism analyses, benchmarking against similar historical contracts (if available), and potentially engaging independent cost estimators. The contracting agency must justify the price by demonstrating that it is fair and reasonable based on available data, even in the absence of direct competition. This often involves detailed negotiation and justification processes to ensure taxpayer funds are used efficiently.
How does this follow-on task order contribute to the overall strategic objectives of the Eagle-M program and the Department of Defense's modernization efforts?
This follow-on task order is likely integral to the continued development and deployment of the Eagle-M system, which presumably enhances critical navigation and guidance capabilities. Such advancements are crucial for maintaining technological superiority and operational effectiveness in modern defense scenarios. The investment signals a commitment to upgrading essential systems, aligning with broader DoD modernization goals aimed at improving situational awareness, mission success rates, and overall force readiness.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
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: 13350 US HIGHWAY 19 N, CLEARWATER, FL, 33764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,231,376
Exercised Options: $22,129,507
Current Obligation: $22,129,507
Actual Outlays: $610,153
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,294,561
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: FA857620D0001
IDV Type: IDC
Timeline
Start Date: 2022-08-18
Current End Date: 2026-01-29
Potential End Date: 2026-01-29 12:01:00
Last Modified: 2025-09-09
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