DoD awards $44.8M for T55-GA-714A engine maintenance to Honeywell, citing urgent, one-time need
Contract Overview
Contract Amount: $44,822,690 ($44.8M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-13
End Date: 2021-05-31
Contract Duration: 626 days
Daily Burn Rate: $71.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS IS AN URGENT ONE-TIME BUY MAINTENANCE AND OVERHAUL FOR THE FOLLOWING: NOUN: T55-GA-714A ENGINE NSN: 2840-01-458-5361 P/N: 2-001-020-39 QTY: 65 EA
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $44.8 million to HONEYWELL INTERNATIONAL INC. for work described as: THIS IS AN URGENT ONE-TIME BUY MAINTENANCE AND OVERHAUL FOR THE FOLLOWING: NOUN: T55-GA-714A ENGINE NSN: 2840-01-458-5361 P/N: 2-001-020-39 QTY: 65 EA Key points: 1. Urgent, one-time purchase for critical aircraft engine parts. 2. Sole supplier identified as Honeywell International Inc. 3. High contract value suggests significant operational reliance. 4. Limited competition raises concerns about price discovery.
Value Assessment
Rating: questionable
The contract value of $44.8M for 65 units is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar engine overhauls.
Cost Per Unit: $689,579.85
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a potential sole-source or limited source situation. This lack of competition may have led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pricing mechanisms for this urgent, one-time buy.
Public Impact
Ensures operational readiness of critical military aircraft. Supports the T55-GA-714A engine, likely used in various Army platforms. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Urgent, one-time buy may bypass standard procurement efficiencies
- High per-unit cost
Positive Signals
- Addresses an urgent operational need
- Contract awarded to a known entity (Honeywell)
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is critical for defense readiness, but often involves specialized components with limited suppliers, necessitating careful oversight.
Small Business Impact
The data indicates this contract was not awarded to small businesses. There is no information provided on whether small businesses were considered or had the capability to fulfill this specialized requirement.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would focus on ensuring the necessity of the urgent, one-time buy and validating the pricing against any available benchmarks, especially given the lack of competition.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Urgency may have bypassed standard cost-saving procurement steps.
- Lack of transparency regarding the specific reasons for limited competition.
- High per-unit cost requires further validation.
- No indication of small business participation.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 million to HONEYWELL INTERNATIONAL INC.. THIS IS AN URGENT ONE-TIME BUY MAINTENANCE AND OVERHAUL FOR THE FOLLOWING: NOUN: T55-GA-714A ENGINE NSN: 2840-01-458-5361 P/N: 2-001-020-39 QTY: 65 EA
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 $44.8 million.
What is the period of performance?
Start: 2019-09-13. End: 2021-05-31.
What is the justification for this being a one-time, urgent buy and why was competition not feasible?
The urgent, one-time nature suggests a critical, unforeseen maintenance requirement for the T55-GA-714A engine. The lack of competition implies either a sole-source situation due to proprietary technology, unique repair capabilities held only by Honeywell, or an extremely tight deadline that precluded a full and open solicitation process.
How does the per-unit cost compare to historical data or industry benchmarks for similar engine overhauls?
The per-unit cost of approximately $690,000 is high. A thorough analysis would require comparing this figure against previous contracts for the same service, similar engine models, or published industry rates for complex aerospace engine maintenance and overhaul to determine if it represents fair and reasonable pricing.
What is the long-term strategy for maintaining the T55-GA-714A engine fleet, given this one-time purchase?
This one-time purchase raises questions about the long-term sustainment strategy. Future planning should consider whether to establish more competitive contracts, explore alternative engine platforms, or invest in organic repair capabilities to avoid recurring urgent, sole-source procurements and potentially achieve better long-term cost efficiencies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ19R0183
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
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: $45,940,375
Exercised Options: $44,822,690
Current Obligation: $44,822,690
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $2,827,647
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-13
Current End Date: 2021-05-31
Potential End Date: 2021-07-13 12:07:00
Last Modified: 2021-04-14
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