DoD Awards $37.2M Contract for UAS GMAVS CLS to Honeywell, Raising Oversight Concerns
Contract Overview
Contract Amount: $37,240,798 ($37.2M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-05
End Date: 2014-08-31
Contract Duration: 2,370 days
Daily Burn Rate: $15.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: UCA LETTER CONTRACT FOR CLS ON THE UAS GMAVS.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85027
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $37.2 million to HONEYWELL INTERNATIONAL INC. for work described as: UCA LETTER CONTRACT FOR CLS ON THE UAS GMAVS. Key points: 1. Significant contract value of $37.2 million awarded. 2. Sole-source award to Honeywell International Inc. limits competition. 3. Long contract duration of 2370 days warrants close monitoring. 4. Aircraft Manufacturing sector sees substantial investment.
Value Assessment
Rating: questionable
The contract value of $37.2 million for Aircraft Manufacturing services is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts, raising questions about cost-effectiveness.
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 lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for these services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long contract duration could lead to cost overruns if not managed effectively. Dependence on a single supplier for critical UAS components raises supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
- Potential for cost overruns
Positive Signals
- Established contractor (Honeywell)
- Definitive contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for services related to Unmanned Aircraft Systems (UAS) Ground Control and Maintenance. Spending in this area is critical for modern defense capabilities.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. This suggests a focus on large, established aerospace corporations for this specific procurement.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Defense Contract Management Agency to ensure fair pricing and effective service delivery, mitigating potential risks associated with non-competitive awards.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Long contract duration increases risk of cost overruns and performance issues.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for vendor lock-in with Honeywell.
- No indication of small business participation.
Tags
aircraft-manufacturing, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.2 million to HONEYWELL INTERNATIONAL INC.. UCA LETTER CONTRACT FOR CLS ON THE UAS GMAVS.
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $37.2 million.
What is the period of performance?
Start: 2008-03-05. End: 2014-08-31.
What justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive contracts?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Federal regulations like the FAR (Federal Acquisition Regulation) outline specific criteria and approval processes for sole-source procurements to ensure they are used judiciously and taxpayers receive fair value.
What mechanisms are in place to control costs and ensure value for money throughout the 2370-day contract duration, given it's a Cost Plus Fixed Fee (CPFF) type?
For a CPFF contract, cost control relies heavily on the fixed fee, which incentivizes the contractor to manage costs efficiently to maximize profit. Oversight includes regular audits, performance reviews, and detailed cost reporting. The Defense Contract Management Agency (DCMA) plays a crucial role in monitoring expenditures and ensuring the contractor adheres to the contract's scope and cost ceilings.
How will the Department of Defense ensure continued innovation and avoid vendor lock-in with Honeywell for these UAS services over such an extended period?
To mitigate vendor lock-in and encourage innovation, the DoD can incorporate performance incentives, technology refresh clauses, and opportunities for competitive re-competition at key milestones within the contract. Regular market research and engagement with other potential suppliers can also inform future strategies and ensure the DoD remains adaptable to evolving UAS technologies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 9201 SAN MATEO BLVD. NE, ALBUQUERQUE, NM, 87113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,240,798
Exercised Options: $37,240,798
Current Obligation: $37,240,798
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-03-05
Current End Date: 2014-08-31
Potential End Date: 2014-08-31 00:00:00
Last Modified: 2021-02-22
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