Army Awards $44.8M to Honeywell for T55 Engine Parts, Citing Sole-Source Need
Contract Overview
Contract Amount: $44,845,524 ($44.8M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-28
End Date: 2024-07-31
Contract Duration: 734 days
Daily Burn Rate: $61.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T55-GA-714A ENGINES, ELECTRONIC CONTROL UNITS, AND ENGINE INSTALLATION KITS
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: T55-GA-714A ENGINES, ELECTRONIC CONTROL UNITS, AND ENGINE INSTALLATION KITS Key points: 1. Significant contract value for critical aircraft engine components. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on engine parts manufacturing highlights a key defense sector. 4. Long contract duration suggests ongoing operational needs.
Value Assessment
Rating: questionable
The contract value of $44.8 million for T55 engine parts appears substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar engine components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for these critical engine parts could lead to inflated prices, impacting the efficient use of taxpayer funds.
Public Impact
Ensures continued operational readiness for Army aircraft utilizing T55 engines. Supports a specific segment of the aerospace manufacturing industry. Potential for higher costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures critical part availability
- Supports existing fleet readiness
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is often driven by military readiness requirements and the lifecycle of aging aircraft fleets.
Small Business Impact
The awardee, Honeywell International Inc., is a large corporation. There is no indication in the data that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair pricing and that competition was appropriately considered or justified as not feasible.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on pricing justification
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 $44.8 million to HONEYWELL INTERNATIONAL INC.. T55-GA-714A ENGINES, ELECTRONIC CONTROL UNITS, AND ENGINE INSTALLATION KITS
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: 2022-07-28. End: 2024-07-31.
What is the justification for the sole-source award of T55 engine parts, and have alternative sourcing options been thoroughly explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the lack of available alternatives. For T55 engine parts, this could stem from Honeywell's exclusive manufacturing rights or specialized knowledge required for their production and maintenance. A thorough review would involve market research to confirm no other capable suppliers exist and that the existing supplier's pricing is reasonable.
How does the $44.8 million contract value compare to historical spending on T55 engine parts, and what is the projected cost-effectiveness?
Benchmarking this $44.8 million award against historical spending on similar T55 engine parts is crucial for assessing cost-effectiveness. Without competitive bids, it's challenging to determine if this represents a fair market price. Analyzing past contract values, inflation adjustments, and the specific components procured will help ascertain if the government is receiving good value or if potential cost savings were missed due to the sole-source nature.
What are the long-term implications for aircraft maintenance and operational readiness given the sole-source procurement of these critical engine components?
The long-term implications of sole-source procurement for critical engine parts like those for the T55 can impact operational readiness and maintenance costs. Reliance on a single supplier may lead to supply chain vulnerabilities and price escalations over time. Ensuring a robust maintenance plan and exploring options for future competition or technology insertion will be vital for sustained fleet readiness and cost management.
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: $44,845,524
Exercised Options: $44,845,524
Current Obligation: $44,845,524
Subaward Activity
Number of Subawards: 98
Total Subaward Amount: $28,485,683
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: 2022-07-28
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 12:07:00
Last Modified: 2024-11-25
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