DoD Awards Honeywell $176M for Generators, Raising Concerns Over Competition and Value
Contract Overview
Contract Amount: $14,730,977 ($14.7M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-03
End Date: 2006-12-30
Contract Duration: 1,123 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200408!000623!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0030 !A!N! !N! ! !20031203!20051231!176019107!176019107!139691877!N!HONEYWELL INTERNATIONAL INC !1300 W WARNER ROAD !TEMPE !AZ!85285!77000!019!04!TUCSON !PIMA !ARIZONA !+000004833600!N!N!000000000000!6115!GENERATORS AND GENERATOR SETS, ELECTRICAL !A1A!AIRFRAMES AND SPARES !000 !* !335312!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!Z!N!A! ! !Y!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !
Place of Performance
Location: TEMPE, MARICOPA County, ARIZONA, 85284
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $14.7 million to HONEYWELL INTERNATIONAL INC. for work described as: 200408!000623!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0030 !A!N! !N! ! !20031203!20051231!176019107!176019107!139691877!N!HONEYWELL INTERNATIONAL INC !1300 W WARNER ROAD !TEMPE !AZ!85285!77000!019!04!TUCSON !PIMA… Key points: 1. Contract awarded to Honeywell International Inc. for generators and generator sets. 2. Significant contract value of $176 million over three years. 3. Awarded as 'Not Competed', raising questions about market research and price discovery. 4. The sector is Motor and Generator Manufacturing, with potential implications for defense readiness.
Value Assessment
Rating: questionable
The contract value of $176 million for generators and generator sets appears high given the 'Not Competed' status. Without competitive bidding, it's difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a 'Not Competed' basis, indicating a lack of full and open competition. This limits the government's ability to explore alternative solutions and secure the best possible pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential generator sets.
Public Impact
Potential for inflated costs due to limited competition. Impact on military readiness if essential equipment is not procured at the best value. Raises questions about the effectiveness of DoD's procurement processes for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential overpricing
- Limited market research evident
Positive Signals
- Essential equipment for defense operations
- Long-term contract provides stability
Sector Analysis
This contract falls within the Motor and Generator Manufacturing sector. Spending in this area is critical for maintaining military equipment and infrastructure. Benchmarks for similar contracts are difficult to ascertain due to the limited competition cited.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The 'Not Competed' award status warrants further oversight to ensure adequate justification and to confirm that all reasonable efforts were made to explore competitive options before limiting the field.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Sole-source dependency risk
- Limited transparency in pricing
- Questionable market research
Tags
motor-and-generator-manufacturing, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to HONEYWELL INTERNATIONAL INC.. 200408!000623!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0030 !A!N! !N! ! !20031203!20051231!176019107!176019107!139691877!N!HONEYWELL INTERNATIONAL INC !1300 W WARNER ROAD !TEMPE !AZ!85285!77000!019!04!TUCSON !PIMA !ARIZONA !+000004833600!N!N!000000000000!6115!GENERATORS AND GENERATOR SETS, ELECTRICAL !A1A!AIRFRAMES AND SPARES !000 !* !335312!E! !3! ! ! ! ! !999
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 $14.7 million.
What is the period of performance?
Start: 2003-12-03. End: 2006-12-30.
What specific justification was provided for awarding this contract on a 'Not Competed' basis, and was a thorough market survey conducted?
The provided data indicates the contract was 'Not Competed'. A detailed justification would typically outline why full and open competition was not feasible, such as the existence of only one responsible source, or a compelling urgency. Without access to the contract file, it's impossible to verify the adequacy of the market survey or the specific justification used.
How does the unit cost of these generators compare to similar procurements by other government agencies or commercial entities, especially given the lack of competitive bidding?
Direct comparison of unit costs is challenging without knowing the exact specifications of the generators and without a competitive benchmark. The 'Not Competed' status suggests the government may not have achieved the most favorable pricing achievable through open competition. A price analysis would be crucial to determine if the $176 million award represents fair and reasonable pricing.
What is the potential impact on operational readiness if these generators fail and replacement parts or new units are not readily available due to limited supplier options?
The reliance on a single source for critical components like generators poses a significant risk to operational readiness. If Honeywell faces production issues or supply chain disruptions, the military could experience extended downtime for essential equipment. This underscores the importance of robust contingency planning and potentially seeking alternative sources for future procurements.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 1300 W WARNER ROAD, TEMPE, AZ, 85285
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2003-12-03
Current End Date: 2006-12-30
Potential End Date: 2006-12-30 12:12:00
Last Modified: 2015-11-18
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