DoD Awards $44M for T-55 Engines to Honeywell, Facing Limited Competition Concerns
Contract Overview
Contract Amount: $44,081,384 ($44.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-16
End Date: 2025-12-31
Contract Duration: 471 days
Daily Burn Rate: $93.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-55 ENGINE
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $44.1 million to HONEYWELL INTERNATIONAL INC. for work described as: T-55 ENGINE Key points: 1. Significant contract value of $44.1 million for critical aircraft engine components. 2. Honeywell International Inc. is the sole awardee, raising questions about competition. 3. Potential risk associated with limited competition impacting price discovery. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $44.1 million for T-55 engines appears substantial. Benchmarking against similar engine part contracts is difficult without more specific data on the exact components and quantities, but the limited competition raises concerns about whether this price represents optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This method can restrict the pool of potential bidders, potentially leading to higher prices than if a broader competition were pursued.
Taxpayer Impact: The limited competition may result in taxpayers paying more than necessary for these critical engine parts, as robust price discovery mechanisms might be absent.
Public Impact
Ensures continued operational readiness for aircraft relying on T-55 engines. Supports a key defense manufacturing sector and associated supply chains. Potential for increased costs to the government due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Sole awardee
- Potential for price inflation
Positive Signals
- Critical component for defense operations
- Long-term contract duration
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 sector is often characterized by high R&D costs, specialized manufacturing, and significant government procurement.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or had no opportunity to participate in this specific procurement.
Oversight & Accountability
The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific justification for limiting the competitive pool. Oversight should focus on the validity of this exclusion and its impact on cost-effectiveness.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises value concerns.
- Potential for price inflation due to sole awardee.
- Lack of small business participation noted.
- Dependence on a single supplier for critical parts.
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 $44.1 million to HONEYWELL INTERNATIONAL INC.. T-55 ENGINE
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 $44.1 million.
What is the period of performance?
Start: 2024-09-16. End: 2025-12-31.
What was the specific justification for excluding other sources in this full and open competition?
The justification for excluding other sources is crucial for understanding the limited competition. Typically, such exclusions are based on factors like proprietary technology, unique capabilities, or urgent and compelling needs. A thorough review of the contracting officer's justification is necessary to assess if it was appropriate and if it truly prevented broader competition, thereby impacting potential cost savings for the government.
How does the awarded price compare to historical T-55 engine part procurements or industry benchmarks?
Comparing the awarded price of $44,081,383.5 to historical data or industry benchmarks is essential for assessing value. Without this comparison, it's difficult to determine if the price is reasonable, especially given the limited competition. An analysis of previous contracts for similar parts, or benchmarking against prices from other manufacturers (if available), would reveal potential overpricing or cost efficiencies.
What is the long-term strategic impact of relying on a single supplier for these critical engine parts?
Relying on a single supplier like Honeywell for critical T-55 engine parts presents strategic risks, including potential supply chain disruptions, price leverage by the sole provider, and reduced innovation incentives. While it can ensure consistent supply, it necessitates robust contract management and contingency planning to mitigate vulnerabilities and maintain long-term cost-effectiveness and operational readiness.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
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: $44,081,384
Exercised Options: $44,081,384
Current Obligation: $44,081,384
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $5,459,752
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ20D0098
IDV Type: IDC
Timeline
Start Date: 2024-09-16
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 12:12:00
Last Modified: 2025-08-27
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