Department of the Army awards $12.4M delivery order for vehicle electronics to Honeywell International, Inc

Contract Overview

Contract Amount: $12,437,264 ($12.4M)

Contractor: Honeywell International, Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-20

End Date: 2027-08-31

Contract Duration: 1,167 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER OFF BASE CONTRACT W56HZV19D0075

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85737

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to HONEYWELL INTERNATIONAL, INC for work described as: DELIVERY ORDER OFF BASE CONTRACT W56HZV19D0075 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Delivery order issued against an existing base contract, suggesting a pre-established relationship. 4. The duration of the order extends over three years, implying a sustained need for these components. 5. The North American Industry Classification System (NAICS) code 336320 points to manufacturing of motor vehicle electrical and electronic equipment. 6. The awardee, Honeywell International, Inc., is a large, established defense contractor. 7. The contract is for delivery order off a base contract, indicating it's part of a larger procurement vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the terms of the base contract it was issued against. However, the firm-fixed-price structure suggests that the price was determined upfront. Given that the contract was not competed, it's difficult to assess if the pricing represents optimal value for money compared to market alternatives. Further analysis would require comparing the unit prices within this order to similar procurements for comparable electronic components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This delivery order was not competed and was issued under an existing base contract. The specific details of the base contract's competition level are not provided, but the issuance of a delivery order without further competition suggests a sole-source or limited competition scenario for this specific task order. This approach may be used for specialized equipment or when a specific contractor has unique capabilities or existing infrastructure.

Taxpayer Impact: When contracts are not competed, taxpayers may not benefit from the competitive pricing that typically drives down costs. This can lead to higher expenditures than might be achieved through a more open bidding process.

Public Impact

The primary beneficiaries are likely military units requiring updated or replacement motor vehicle electrical and electronic equipment. The services delivered involve the provision of specific electronic components for vehicles. The geographic impact is primarily within Arizona, where the contractor is located, and wherever the vehicles equipped with these components are deployed. Workforce implications may include continued employment for personnel at Honeywell involved in the manufacturing and delivery of these parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Reliance on a single contractor for specific components could pose supply chain risks.
The specific nature of the electronic components might limit alternative sourcing options.

Positive Signals

Award to a large, established contractor like Honeywell suggests a degree of reliability and experience.
Firm-fixed-price contract provides cost certainty for the government.
Delivery order against a base contract implies a potentially streamlined procurement process.

Sector Analysis

The motor vehicle electrical and electronic equipment manufacturing sector is a critical component of the broader automotive and defense industries. This contract falls under NAICS code 336320, which encompasses establishments primarily engaged in manufacturing motor vehicle electrical and electronic equipment, such as engine electrical equipment, lighting equipment, and electronic automotive devices. The defense sector often procures specialized versions of these components, requiring high reliability and specific performance characteristics. Spending in this area is influenced by fleet modernization, maintenance needs, and technological upgrades.

Small Business Impact

This contract was awarded to Honeywell International, Inc., a large corporation, and there is no indication of a small business set-aside. Furthermore, the data does not specify any subcontracting requirements for small businesses. Therefore, this particular award does not appear to directly benefit the small business ecosystem through set-asides, though subcontracting opportunities may exist within Honeywell's broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order against a base contract, the terms and conditions of the base contract would govern much of the oversight. Transparency is generally provided through contract databases like FPDS. Accountability measures would include performance monitoring and adherence to the firm-fixed-price terms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Procurement
Military Vehicle Modernization Programs
Tactical Wheeled Vehicle Systems
Defense Logistics Agency (DLA) Support Contracts

Risk Flags

Non-competitive award
Potential for higher cost due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to HONEYWELL INTERNATIONAL, INC. DELIVERY ORDER OFF BASE CONTRACT W56HZV19D0075

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 $12.4 million.

What is the period of performance?

Start: 2024-06-20. End: 2027-08-31.

What is the historical spending pattern for motor vehicle electrical and electronic equipment by the Department of the Army?

Analyzing historical spending for motor vehicle electrical and electronic equipment by the Department of the Army requires a comprehensive review of procurement data over several fiscal years. This would involve querying databases like FPDS-NG for contracts awarded under relevant NAICS codes (e.g., 336320) and PSC codes related to vehicle electronics. Key metrics to examine would include total annual spending, the number of contracts awarded, the average contract value, and the distribution of awards between competed and non-competed actions. Understanding trends in spending, such as increases or decreases over time, and identifying major contractors would provide context for the current $12.4 million delivery order. This historical perspective is crucial for assessing whether current spending levels are consistent with past investments or represent a significant deviation, potentially indicating new program requirements or shifts in procurement strategy.

How does the pricing of this delivery order compare to similar contracts for vehicle electronic components?

To compare the pricing of this $12.4 million delivery order for motor vehicle electrical and electronic equipment to similar contracts, one would need to identify comparable procurements. This involves searching for contracts with similar North American Industry Classification System (NAICS) codes (e.g., 336320) and Product Service Codes (PSCs) that specify electronic components for vehicles. Key comparison points would include unit prices for specific components, if available, or the overall cost per vehicle or system. Benchmarking against contracts awarded by other military branches or federal agencies for similar equipment, and considering the time of award to account for inflation and market fluctuations, is also important. Given that this order was not competed, a direct comparison to competitively awarded contracts would be particularly insightful to gauge potential price differences and assess value for money. The firm-fixed-price nature of the award provides a defined cost, but its reasonableness is best evaluated against market benchmarks.

What are the specific risks associated with awarding a delivery order on a non-competed basis?

Awarding a delivery order on a non-competed basis, as seen with this $12.4 million order for Honeywell International, Inc., carries several risks. Primarily, it limits the government's ability to leverage competitive market forces to achieve the best possible pricing, potentially leading to higher costs for taxpayers. There's also a risk of reduced innovation, as a lack of competition may disincentivize contractors from offering novel solutions or efficiencies. Furthermore, over-reliance on non-competed awards can create a perception of favoritism or a lack of due diligence in procurement processes. From a supply chain perspective, if the non-competed award is for a critical component, it could create a dependency on a single source, increasing vulnerability to disruptions. Ensuring that non-competed awards are justified by specific circumstances, such as unique technical requirements, urgent needs, or the existence of only one responsible source, is crucial to mitigate these risks.

What is Honeywell International, Inc.'s track record with Department of Defense contracts for vehicle electronics?

Honeywell International, Inc. has a significant track record of performing contracts with the Department of Defense (DoD) across various sectors, including defense electronics and vehicle components. To assess their specific performance related to motor vehicle electrical and electronic equipment, one would examine their contract history within the DoD. This involves reviewing past awards, contract values, performance ratings (if publicly available), and any instances of contract disputes or terminations. For contracts under NAICS code 336320 or similar classifications, analyzing the types of electronic systems provided, the scale of previous orders, and their on-time delivery and quality metrics would be informative. A review of their performance on similar firm-fixed-price delivery orders would also provide relevant context for this current award. Generally, large defense contractors like Honeywell are expected to meet stringent performance standards, but a detailed analysis of their specific history in this niche is necessary for a thorough assessment.

What is the strategic importance of motor vehicle electrical and electronic equipment for the Department of the Army?

Motor vehicle electrical and electronic equipment is strategically vital for the Department of the Army, underpinning the functionality, safety, and operational effectiveness of its vast fleet of vehicles. Modern military vehicles rely heavily on sophisticated electronic systems for navigation, communication, command and control, situational awareness, power management, and advanced driver assistance. These components are critical for ensuring that vehicles can operate reliably in diverse and demanding environments, from combat zones to logistical support missions. Upgrades to electronic systems often enhance vehicle performance, reduce maintenance burdens, improve fuel efficiency, and integrate new technologies that provide a tactical advantage. Therefore, ensuring a consistent supply of high-quality, reliable electrical and electronic components is essential for maintaining the readiness and capability of the Army's ground transportation assets.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Motor Vehicle Electrical and Electronic Equipment Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11100 N. ORACLE RD, TUCSON, AZ, 85737

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: $12,437,264

Exercised Options: $12,437,264

Current Obligation: $12,437,264

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV19D0075

IDV Type: IDC

Timeline