DoD awards $24.7M for EGI with SAASM Receiver to Honeywell, citing no competition
Contract Overview
Contract Amount: $24,687,562 ($24.7M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-11
End Date: 2016-08-10
Contract Duration: 699 days
Daily Burn Rate: $35.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NSN:6605-01-513-5946 P/N:34209950-R004-960 PLATFORM:9.8 EGI WITH SAASM RECEIVER PLATFORM: AH64D
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to HONEYWELL INTERNATIONAL INC. for work described as: NSN:6605-01-513-5946 P/N:34209950-R004-960 PLATFORM:9.8 EGI WITH SAASM RECEIVER PLATFORM: AH64D Key points: 1. Contract awarded to a single, large business vendor. 2. No competition was cited for this award. 3. The contract is for a critical navigation system for the AH-64D platform. 4. The sector is dominated by large defense contractors.
Value Assessment
Rating: fair
The contract price of $24.7 million for 1 unit appears high given the duration and lack of competition. Benchmarking is difficult without more data on similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, which limits price discovery and potentially leads to higher costs for the government. The sole-source nature suggests a lack of available alternatives or a strategic decision to use a specific vendor.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential defense equipment.
Public Impact
Ensures continued operational capability for AH-64D Apache helicopters. Supports critical navigation and guidance systems for military operations. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Essential equipment for military platform
- Firm fixed price contract
Sector Analysis
The defense sector, particularly for specialized systems like navigation, often sees limited competition due to high barriers to entry and proprietary technology. Spending benchmarks for such systems can vary widely.
Small Business Impact
This contract was awarded to a large business, Honeywell International Inc. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for the lack of competition. Oversight by the Defense Logistics Agency is crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to HONEYWELL INTERNATIONAL INC.. NSN:6605-01-513-5946 P/N:34209950-R004-960 PLATFORM:9.8 EGI WITH SAASM RECEIVER PLATFORM: AH64D
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $24.7 million.
What is the period of performance?
Start: 2014-09-11. End: 2016-08-10.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for the sole-source award is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs. Further investigation would be required to determine if alternatives were considered and why they were deemed unsuitable.
How does the unit cost compare to similar navigation systems procured competitively?
Without access to competitive procurement data for comparable EGI systems with SAASM receivers, a direct cost comparison is not possible. The $24.7 million price tag for one unit, awarded non-competitively, raises concerns about potential overpricing. Benchmarking against similar systems acquired through competitive bidding is essential for validating value for money.
What is the long-term strategy for procuring this critical component to ensure future affordability and availability?
The long-term strategy for procuring this critical component is unclear from the provided data. Given the sole-source nature of this award, the Department of Defense should explore options for fostering competition in future procurements, such as encouraging new entrants, developing alternative technologies, or negotiating longer-term agreements with built-in price adjustments to ensure affordability and availability.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 13350 US HIGHWAY 19 NORTH, CLEARWATER, FL, 13
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,687,562
Exercised Options: $24,687,562
Current Obligation: $24,687,562
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854013D0002
IDV Type: IDC
Timeline
Start Date: 2014-09-11
Current End Date: 2016-08-10
Potential End Date: 2016-08-10 00:00:00
Last Modified: 2014-10-24
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