Honeywell FM&T Receives Contract Extension

New contract reflects transformation in M&O contracting

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Oct 01, 2010, 06:22 ET

KANSAS CITY, Mo., Oct. 1 /PRNewswire/ -- Honeywell (NYSE: HON) has been awarded an extension to the approximately $600M annual operating budget contract for the management and operation of the National Nuclear Security Administration's (NNSA) Kansas City Plant. The new three-year contract (estimated cost, excluding available award fee and options: $1.8 B) will extend performance through September 30, 2013, and includes two additional one-year options. It will allow the Kansas City Responsive Infrastructure, Manufacturing and Sourcing (KCRIMS) project to be completed successfully, providing for a steady state of operations and less risk.

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The new contract includes significant modifications from prior Managing & Operating (M&O) contracts. In addition to reflecting more standard and current acquisition regulations, this specific contract boldly separates annual fee pool from the budgeting process. Specifically, establishing a fixed annual fee pool up front, removing the motive or appearance that contractors passively allow budgets to grow to increase award fee pool.

Honeywell Federal Manufacturing & Technologies (FM&T) President Tony Brancato said the contract extension is a vote of confidence from the customer.

"Honeywell proactively supports the government's vision for change," says Honeywell FM&T President Tony Brancato. "At Honeywell, change is always a critical ingredient to continuous improvement and performance excellence. In many cases, the new contract simply documents the ways we hold ourselves accountable and work with the NNSA every day."

Mark Holecek, Manager of the NNSA Kansas City Site Office, said that the decision to extend the contract demonstrates the NNSA's commitment to being good stewards of taxpayer money, and will enable NNSA to improve the efficiency of its operations. "They will also strengthen the NNSA's ability to fully deliver on the President's goals for nuclear nonproliferation and maintaining a strong nuclear deterrent."

Transition period will begin October 1, 2010 and extend through December 31, 2010. Performance on the new contract then initiates on January 1, 2011.

NNSA also announced additional contract proposals at other sites as part of the new Contract and Acquisition Strategy. For more information, visit http://www.nnsa.energy.gov.

About Honeywell FM&T

Honeywell Federal Manufacturing & Technologies, LLC (FM&T) is a management and operating contractor for the National Nuclear Security Administration's Kansas City Plant contract. The facilities under management are multi-disciplinary engineering and manufacturing operations specializing in electrical, mechanical and engineered material components. They are one of the nation's most diverse low-volume, high reliability production facilities serving government agencies, national laboratories, universities, and U.S. industry. FM&T employs approximately 2,700 employees at facilities in Kansas City, Missouri and Albuquerque, N.M.

Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of heir experience and their perception of historical treads, current condition, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantee of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.

SOURCE Honeywell