DoD's $24.7M Honeywell ESPC Contract for Engineering Services Faces Oversight Questions
Contract Overview
Contract Amount: $24,728,559 ($24.7M)
Contractor: Honeywell Building Solutions SES Corp
Awarding Agency: Department of Defense
Start Date: 2009-12-29
End Date: 2025-10-31
Contract Duration: 5,785 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC SERVICE YEAR FIFTEEN (15)
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to HONEYWELL BUILDING SOLUTIONS SES CORP for work described as: ESPC SERVICE YEAR FIFTEEN (15) Key points: 1. Contract value of $24.7M over 15 years. 2. Competition was full and open, suggesting potential for price discovery. 3. Risk exists due to long duration and potential for scope creep. 4. Sector is Engineering Services, often complex and requiring specialized expertise.
Value Assessment
Rating: fair
The contract's firm-fixed-price structure aims to control costs. However, the long 15-year duration and potential for multiple delivery orders (16 total) make a direct per-unit cost comparison difficult without detailed task order data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of delivery orders allows for flexibility but requires careful management to ensure fair pricing for each task.
Taxpayer Impact: While competition is positive, the long-term nature and potential for modifications warrant scrutiny to ensure taxpayer funds are used efficiently over the contract's lifespan.
Public Impact
Long-term energy performance contracts can yield significant savings but require diligent oversight. The Department of the Army's reliance on this contract highlights the importance of energy efficiency in military operations. Potential for modernization and infrastructure upgrades impacting facilities and personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (15 years)
- Multiple delivery orders (16)
- Potential for scope creep over time
Positive Signals
- Full and open competition
- Firm fixed price contract type
Sector Analysis
This contract falls under Engineering Services, a broad category. ESPCs are common in government for energy efficiency upgrades, often involving significant upfront investment with long-term savings. Benchmarks vary widely based on project scope.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's long duration and multiple delivery orders necessitate robust oversight from the Department of the Army to ensure performance standards are met and costs remain justified. Tracking of key performance indicators and regular reviews are crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term contract duration
- Potential for scope creep
- Reliance on a single vendor for an extended period
- Need for continuous oversight and performance verification
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to HONEYWELL BUILDING SOLUTIONS SES CORP. ESPC SERVICE YEAR FIFTEEN (15)
Who is the contractor on this award?
The obligated recipient is HONEYWELL BUILDING SOLUTIONS SES CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.7 million.
What is the period of performance?
Start: 2009-12-29. End: 2025-10-31.
What specific energy efficiency measures are included in this ESPC, and what are the projected savings?
The provided data does not detail the specific energy efficiency measures or projected savings. A thorough review of the contract's scope of work and associated performance metrics would be required to assess the value proposition and confirm if the projected savings are being realized over the 15-year period.
How is the government ensuring that the firm-fixed-price structure remains advantageous given the 15-year duration and potential for modifications?
The firm-fixed-price structure is intended to cap costs, but its long-term advantage depends on stringent change control and performance monitoring. The Department of the Army must actively manage any modifications to prevent scope creep and ensure that the pricing remains competitive and justified throughout the contract's lifecycle.
What mechanisms are in place to measure and verify the effectiveness of the services provided by Honeywell?
Effectiveness is typically measured through baseline energy consumption data and post-implementation monitoring. The contract likely includes specific performance metrics and verification procedures. Regular audits and performance reviews by the Department of the Army are essential to ensure that the services delivered are achieving the intended energy savings and operational improvements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Resideo Technologies, Inc.
Address: 1250 W SAM HOUSTON PKWY S, HOUSTON, TX, 77042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,435,405
Exercised Options: $31,435,405
Current Obligation: $24,728,559
Actual Outlays: $2,874,095
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698GO10332
IDV Type: IDC
Timeline
Start Date: 2009-12-29
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2024-05-09
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