Honeywell awarded $25.6M for TIGER III Year Seven Services, a sole-source contract for armored vehicle components

Contract Overview

Contract Amount: $25,590,179 ($25.6M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-30

End Date: 2026-12-31

Contract Duration: 366 days

Daily Burn Rate: $69.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TIGER III - YEAR SEVEN SERVICES

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85034

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to HONEYWELL INTERNATIONAL INC. for work described as: TIGER III - YEAR SEVEN SERVICES Key points: 1. Contract value represents a significant investment in specialized military vehicle sustainment. 2. Sole-source award indicates a lack of readily available alternatives or a need for specific contractor expertise. 3. Long-term contract duration suggests ongoing requirements for these critical components. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic location in Arizona may point to specific manufacturing or testing facilities. 6. The contract falls under the broad category of military vehicle manufacturing and support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The provided data does not include a per-unit cost or comparison to similar contracts. However, the total value of $25.6 million for two years of services suggests a substantial investment in maintaining and upgrading military armored vehicles. Without competitive bids, it's difficult to definitively assess if this represents optimal value for money, but it aligns with the high costs typically associated with defense procurement for specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited. The justification for a sole-source award would need to be thoroughly documented by the agency.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The absence of multiple offers means there was no direct pressure on pricing from market competition.

Public Impact

The U.S. Army benefits from the continued sustainment and potential upgrades of its armored vehicle fleet. Services delivered likely include maintenance, repair, and potentially manufacturing of critical components for TIGER III vehicles. The geographic impact is primarily centered in Arizona, where Honeywell's operations supporting this contract are located. Workforce implications include the potential for continued employment of skilled labor in specialized manufacturing and engineering roles within Honeywell.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other businesses and potentially increases costs.
Lack of transparency in pricing due to no competitive bidding.
Dependence on a single contractor for critical military components.

Positive Signals

Ensures continuity of supply for essential military vehicle components.
Leverages specialized expertise of a known contractor.
Fixed-price contract provides cost certainty for the government.

Sector Analysis

The defense industrial base, particularly within the armored vehicle manufacturing and sustainment sector, is characterized by high barriers to entry, significant R&D investment, and long product lifecycles. Contracts like this are crucial for maintaining the operational readiness of military equipment. The market for such specialized components is often limited to a few key players with the necessary technical capabilities and security clearances. Spending in this sector is driven by national security priorities and the need to modernize aging fleets.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by the prime contractor being Honeywell International Inc. There is no explicit information provided regarding subcontracting plans for small businesses. Without a competitive bidding process or specific set-aside requirements, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract details and performance reports are usually available through official channels like the Federal Procurement Data System (FPDS). Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

TIGER III Program
Military Armored Vehicle Manufacturing
Defense Logistics Agency (DLA) Support Contracts
Army Combat Systems
Vehicle Component Procurement

Risk Flags

Sole-source award may limit cost efficiencies.
Lack of competition could impact long-term pricing.
Specialized nature of components requires specific contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to HONEYWELL INTERNATIONAL INC.. TIGER III - YEAR SEVEN SERVICES

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 $25.6 million.

What is the period of performance?

Start: 2025-12-30. End: 2026-12-31.

What is the historical spending trend for the TIGER III program, and how does this award compare?

The provided data focuses on 'TIGER III - YEAR SEVEN SERVICES' with a value of $25.6 million. To assess historical spending trends, one would need to examine previous years of the TIGER III program. This would involve querying federal procurement databases for awards to Honeywell International Inc. or other contractors under the TIGER III umbrella for prior years (Year One through Year Six). Comparing this $25.6 million award to previous annual expenditures would reveal whether spending is increasing, decreasing, or remaining stable. It's also important to note if this represents a single large award or is part of a larger, multi-year contract that has been incrementally funded. Without access to that historical data, a direct comparison is not possible, but this award signifies a substantial commitment for the specified year.

What specific armored vehicle components or services does Honeywell provide under this contract?

The contract is identified as 'TIGER III - YEAR SEVEN SERVICES' and falls under the Product Service Code (PSC) for 'Military Armored Vehicle, Tank, and Tank Component Manufacturing.' While the specific components are not detailed in the provided data, the 'TIGER III' program is known to be associated with the U.S. Army's Ground Vehicle Systems. Therefore, it is highly probable that Honeywell is providing critical components, subsystems, or specialized services related to the manufacturing, maintenance, or upgrade of armored vehicles within this program. This could include engine components, power systems, structural elements, or advanced electronic systems integral to the operation and survivability of these military platforms. The 'Year Seven Services' designation suggests ongoing support and sustainment activities.

What are the key performance indicators (KPIs) and deliverables expected from Honeywell for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for this contract. However, for a firm-fixed-price contract supporting military vehicle components, typical KPIs would likely revolve around on-time delivery of components or services, adherence to quality standards (e.g., defect rates, compliance with technical specifications), and potentially performance metrics related to the reliability or functionality of the supplied parts. Deliverables would include the physical components themselves, technical documentation, test reports, and possibly maintenance or repair services. The contract's duration (366 days) and end date (December 31, 2026) suggest a defined period for fulfilling these requirements. The Department of the Army would have established specific metrics and acceptance criteria within the contract's statement of work.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED,' which in this context implies a sole-source award. The justification for sole-source procurement typically stems from situations where only one responsible source can satisfy the agency's needs. This could be due to the unique capabilities or proprietary nature of the product or service, the need for compatibility with existing systems, or a lack of adequate competition. For a specialized defense contract like this, Honeywell may possess unique intellectual property, manufacturing processes, or established expertise directly related to the TIGER III program's specific armored vehicle components. The Department of the Army would have a formal justification document (e.g., a Justification and Approval - J&A) outlining the specific reasons why full and open competition was not feasible or advantageous.

How does the $25.6 million contract value compare to the overall budget for armored vehicle sustainment within the Department of the Army?

The $25.6 million awarded to Honeywell for TIGER III Year Seven Services represents a specific allocation for a particular program and year. To compare this to the overall budget for armored vehicle sustainment within the Department of the Army, one would need to access broader budget documents and spending reports. The Army's total budget for vehicle maintenance, repair, and component procurement is likely in the billions of dollars annually, encompassing a vast array of vehicle types and programs beyond TIGER III. Therefore, this $25.6 million, while substantial for a single contract, is likely a fraction of the total sustainment expenditure. It highlights the significant investment required for specialized platforms like those in the TIGER III program, but its proportion within the larger budget context requires further analysis of defense appropriations and spending plans.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component 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: $25,590,179

Exercised Options: $25,590,179

Current Obligation: $25,590,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0062

IDV Type: IDC

Timeline