Army Awards $56.3M for T55-GA-714A Engines to Honeywell, No Competition
Contract Overview
Contract Amount: $56,296,151 ($56.3M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-23
End Date: 2026-12-31
Contract Duration: 1,226 days
Daily Burn Rate: $45.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T55-GA-714A ENGINES
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $56.3 million to HONEYWELL INTERNATIONAL INC. for work described as: T55-GA-714A ENGINES Key points: 1. Significant contract value of $56.3 million for critical aircraft engine components. 2. Sole-source award to Honeywell International Inc. raises questions about competition. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Sector is Aircraft Engine and Engine Parts Manufacturing, a specialized field.
Value Assessment
Rating: questionable
The contract value of $56.3 million for T55-GA-714A engines is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar engine parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were solicited. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential aircraft engine parts.
Public Impact
Ensures continued operational readiness for Army aircraft relying on T55-GA-714A engines. Potential for higher costs impacts overall defense budget allocation. Highlights reliance on a single supplier for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration (over 3 years)
Positive Signals
- Ensures supply of critical engine parts
- Awarded to established manufacturer
Sector Analysis
The Aircraft Engine and Engine Parts Manufacturing sector is highly specialized, often dominated by a few key players. While Honeywell is a major entity, sole-source awards in such sectors warrant scrutiny to ensure fair pricing.
Small Business Impact
This contract was awarded to Honeywell International Inc., a large corporation. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for them.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing strategies. Further oversight is needed to ensure future procurements explore competitive options where feasible.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in price negotiation
- No small business participation evident
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 $56.3 million to HONEYWELL INTERNATIONAL INC.. T55-GA-714A ENGINES
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 $56.3 million.
What is the period of performance?
Start: 2023-08-23. End: 2026-12-31.
What is the justification for the sole-source award of T55-GA-714A engines to Honeywell?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of alternatives. Without specific documentation, it's presumed the Army determined Honeywell was the only viable source for these particular engines, potentially due to proprietary technology or specific performance requirements that cannot be met by other manufacturers.
What is the potential financial risk associated with this sole-source contract?
The primary financial risk is the potential for overpayment due to the absence of competitive bidding. Without competing offers, the government may not be securing the best possible price. This could lead to millions in unnecessary expenditure over the contract's lifespan, impacting the defense budget.
How does this award impact the operational effectiveness of the Army's aircraft fleet?
This award ensures the continued availability of critical T55-GA-714A engines, which are vital for the operational readiness of specific Army aircraft. By securing these parts, the Army mitigates the risk of grounding aircraft due to engine component shortages, thereby maintaining its operational capabilities.
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: $56,296,151
Exercised Options: $56,296,151
Current Obligation: $56,296,151
Subaward Activity
Number of Subawards: 132
Total Subaward Amount: $3,525,392,210
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: 2023-08-23
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2025-06-23
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