DoD Awards Honeywell $25.7M for Aircraft Engine Parts to Support Greece Operations
Contract Overview
Contract Amount: $25,741,434 ($25.7M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2021-11-04
End Date: 2026-09-30
Contract Duration: 1,791 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ELECTRONIC CONTROL UNITS (ECUS), INSTALL KITS, AND ADDITIONAL ENGINES IN SUPPORT OF GREECE.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $25.7 million to HONEYWELL INTERNATIONAL INC. for work described as: ELECTRONIC CONTROL UNITS (ECUS), INSTALL KITS, AND ADDITIONAL ENGINES IN SUPPORT OF GREECE. Key points: 1. Significant award to a single large contractor, Honeywell International Inc. 2. Focus on aircraft engine parts suggests a critical defense supply chain component. 3. Long-term contract duration (nearly 5 years) indicates sustained need. 4. No small business participation noted in this specific award.
Value Assessment
Rating: fair
The award amount of $25.7M for ECUs, kits, and engines appears substantial. Benchmarking against similar sole-source or limited-competition contracts for specialized aircraft components would be necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition procurement. This method can lead to higher prices due to a lack of competitive pressure, though it may be justified for specialized or proprietary components.
Taxpayer Impact: The lack of competition raises concerns about potential overpayment by taxpayers for these critical aircraft engine parts.
Public Impact
Ensures operational readiness for military aircraft supporting operations in Greece. Supports the sustainment of complex aviation systems within the Department of Defense. Potential for increased costs to taxpayers due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of small business participation
- Long contract duration
Positive Signals
- Supports critical defense operations
- Award to established contractor
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is crucial for maintaining military aviation capabilities, but often involves high-value, specialized components that can be subject to limited competition.
Small Business Impact
This specific award does not indicate any participation from small businesses. Efforts to include small businesses in the supply chain for defense components should be explored for future procurements.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight should focus on ensuring the necessity of the sole-source justification and validating the pricing against available benchmarks for similar specialized parts.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of competition.
- No small business participation identified.
- Long contract duration may lock in potentially unfavorable pricing.
- Dependence on a single contractor for critical components.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to HONEYWELL INTERNATIONAL INC.. ELECTRONIC CONTROL UNITS (ECUS), INSTALL KITS, AND ADDITIONAL ENGINES IN SUPPORT OF GREECE.
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 $25.7 million.
What is the period of performance?
Start: 2021-11-04. End: 2026-09-30.
What is the justification for the sole-source award, and has a market research been conducted to confirm no other capable sources exist?
The justification for a sole-source award is critical for understanding why competition was bypassed. A thorough market research report should confirm that no other vendors could meet the specific technical requirements or that only one vendor possesses the necessary proprietary technology or expertise. Without this, taxpayers may be exposed to inflated costs.
How does the unit cost of these ECUs, kits, and engines compare to industry benchmarks for similar defense-grade components?
Comparing the per-unit cost against industry benchmarks is essential for assessing value for money. Given the sole-source nature, a detailed cost analysis, including review of labor, materials, and overhead, should be performed by the agency to ensure the price is fair and reasonable, especially considering the long-term nature of the contract.
What is the long-term strategy for ensuring competitive sourcing for these critical aircraft engine parts beyond this contract's duration?
A long-term strategy is vital to mitigate the risks associated with sole-source procurement. The agency should explore options such as fostering competition through technology insertion, developing alternative suppliers, or encouraging component standardization to enable broader market participation in future procurements, thereby potentially reducing costs.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, 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: $25,741,434
Exercised Options: $25,741,434
Current Obligation: $25,741,434
Subaward Activity
Number of Subawards: 91
Total Subaward Amount: $10,930,989
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ21D0027
IDV Type: IDC
Timeline
Start Date: 2021-11-04
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-11-25
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