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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 24
Honeywell International Inc.
Honeywell International is a $28 billion 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, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor’s 500 Index.
Federal Contract $: $2782.7m
Total Number of Instances: 31
Total Misconduct dollar amount: $ 641.8m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Subsidiary List
- Website
- Contracting Information
Instances of Misconduct
1. Asbestos Litigation
For several years, Honeywell has been trying to settle tens of thousands of asbestos-related injury claims involving its former brick and cement making unit, the North American Refractories Company (NARCO), and Bendix, a former unit of AlliedSignal, which merged with Honeywell. According to Honeywell's February 2007 Form 10-K, the company estimates its liability for settlement of pending and future NARCO-related asbestos claims as of December 31, 2006 and 2005 at $1.3 and $1.8 billion, respectively, and estimates its liability for settlement of pending and future Bendix-related asbestos claims as of December 31, 2006 at $528 million.... more»
2. Cost/Labor Mischarge
According to a GAO report cited by Senator Harkin and Representative DeFazio, Honeywell Information Systems paid $592,779 to settle allegations of “cost/labor mischarging.”... more»
3. Defective Products (2001)
Honeywell Consumer Products (HCP) paid $800,000 to settle the Consumer Product Safety Commission’s allegations of defective and unsafe humidifiers, baseboard heaters, and ceramic heaters created by HCP.... more»
4. Failure to Report Hazardous Chemical Releases
“U.S. Environmental Protection Agency Region 5… settled an administrative complaint against Honeywell International for violation of federal laws on the reporting of hazardous chemical releases. The company… agreed to pay a $36,000 fine.” “EPA alleged that fires on February 5, 1998, and December 17, 1999, at Honeywell’s tar plant at 1200 Zug Road, Detroit, Mich., resulted in the release of coal tar. After the incident, the company failed to immediately notify the National Response Center and the Michigan State Emergency Response Commission. Honeywell also failed to provide written follow-up reports to the Michigan SERC and the city of Detroit’s local emergency planning committee after the second fire. These reports are required as soon as practicable after such incidents.”... more»
5. Labor Law Violations
To settle allegations of labor law violations, Honeywell agreed to pay “a total of $17.6 million in severance and other benefits to the over 500 former employees of the Allied Signal, Inc. plant in Stratford, Connecticut...The charges involved [Honeywell predecessor] Allied Signal's failure to honor the terms of its 'Effects Bargaining Agreements' (EBA) with the Local Unions. The case arose in 1997 when Allied Signal announced that it would not continue the terms of the EBA. On April 12, 2000 the [National Labor Relations Board] issued an Order directing Allied Signal to comply with the terms of the EBA and begin paying severance benefits. Honeywell appealed the Board's Order to the Appeals Court, which on June 29, 2001, issued its Judgment enforcing the Order in full. Thereafter, representatives of Honeywell, UAW Locals 1010 and 376, and NLRB's Hartford, CT office (Region 34), entered into compliance discussions”... more»
6. Local 144 Nursing v. Honeywell International (Securities Fraud)
To settle allegations of securities fraud surrounding the merger of Honeywell and Allied Signal, Inc., Honeywell agreed to pay $100 million to shareholders who purchased Honeywell common stock between December 1, 1999 and June 19, 2000.... more»
7. Neal v. Honeywell
“[D]uring the investigation [of a false claims case, Honeywell manager, Steve] Young began a campaign of intimidation against whoever had alerted his superiors. The parties dispute whether Young then knew Neal's identity but agree that he made plenty of threats. Young related to all who would listen his plans to ‘get’ the snitch, describing the whistleblower as ‘dead meat,’ and announcing his intention to ‘break his legs.’ Honeywell did nothing in response to these public threats, later asserting that it would only ‘add fuel to the fire’ to penalize Young for his intimidating words (or for his deeds: the eventual transfer was not a demotion…) But while Honeywell permitted Young to fulminate, it suggested that Neal leave town. Just before announcing the first steps it would be taking to discipline those responsible for the fraud, Honeywell chose to give Neal a one-month paid leave of absence ‘for her own safety.’ Bill Tyler, Neal's boss, harangued her repeatedly for reporting the fraud, then took away most of her responsibilities until less than a quarter of her duties remained. Neal took the hint and quit. Six years later she sued under the Act, claiming retaliatory discharge and harassment. A jury agreed with her accusations and awarded her $ 550,000 for emotional distress (she accepted a remittitur to $ 200,000), and $ 40,000 in back pay (which, as a result of the statutorily-required doubling plus interest, the judge increased to $150,000). The judge also awarded her $ 1.6 million in attorneys' fees and costs." The Seventh Circuit Court of Appeals subsequently reduced the award of costs by $77,884.... more»
8. Patent Infringement and Illegal Monopolization
“Northrop Grumman Corporation… reached a settlement agreement in antitrust and patent infringement lawsuits filed against Honeywell, Inc…. Under the agreement Honeywell has agreed to pay Northrop Grumman $440 million in cash, $220 million of which will be paid in 2001, with the balance due in July 2002. Northrop Grumman stated that the settlement agreement resolved all aspects of the litigation.” “The suits accused Honeywell of patent infringement and illegal monopolization of the inertial reference systems market for large commercial air transport, commuter and business aircraft.”... more»
9. Unsubstantiated Product Claims
“Honeywell, Inc., of Minneapolis, Minnesota, has agreed to settle Federal Trade Commission charges that the company made unsubstantiated efficiency and allergy relief claims for its Honeywell Air Purifiers — portable, room air cleaners designed for use in homes and offices, which contain enviracaire® True HEPA (high efficiency particulate air) filters. Honeywell is one of the country's leading manufacturers of air purifiers… The proposed agreement to settle the allegations would prohibit Honeywell from making certain efficacy claims about Honeywell Air Purifiers, enviracaire® True HEPA filters, or any other air cleaning product which is normally used for personal, family, or household purposes, unless at the time of making the claims it possesses and relies upon competent and reliable scientific evidence. Furthermore, claims that state or imply a level of performance under any set of conditions, such as household living conditions, must be substantiated by evidence that either relates to such conditions or that was extrapolated to such conditions by generally accepted procedures.”... more»
10. Violations of the Age Discrimination in Employment Act
“The U.S. Equal Employment Opportunity Commission (EEOC)… resolved a class action employment discrimination lawsuit against Morristown, N.J.-based Honeywell International, a global diversified technology company with over 100,000 employees in 95 countries. EEOC's litigation alleged violations of the Age Discrimination in Employment Act of 1967 (ADEA) (29 USC § 621-634, et. seq.) at the company's headquarters and various regions nationwide by representatives of the former AlliedSignal Automotive Aftermarket (the makers of consumer car care items such as Prestone and Fram products), which Honeywell, Inc. acquired during a 1999 merger. According to EEOC's suit, a class of sales managers and representatives were either terminated or demoted in 1997 because of their age during a companywide reorganization. Assertedly, in many instances, younger workers with less experience were retained and/or offered those positions. The suit was filed in federal district court in New Jersey by the agency's Philadelphia District Office.”... more»
11. Violation of the Americans with Disabilities Act
“The U.S. Equal Employment Opportunity Commission (Commission or EEOC)… has resolved a disability discrimination lawsuit against aerospace giant Honeywell for $100,000 for a single charging party, as well as significant injunctive and remedial relief. The EEOC alleged that Honeywell, a large aerospace and systems control company employing over 100,000 people, violated the Americans with Disabilities Act of 1990 (42 USC § 1981, et. seq.) (ADA) when it engaged in a pattern of discrimination against Sherry Layne, a disability-rights activist who is hearing and visually impaired. According to the litigation, Honeywell discriminated against Ms. Layne by withdrawing an accommodation for her disability, involuntarily transferring her, failing to accommodate her disability, and discriminating against her because she sought an accommodation of her disability.”... more»
12. Violations of Virginia and Federal Environmental Regulations
“Honeywell International, Inc…. agreed to pay a $150,000 penalty and perform five special environmental projects worth $772,000 to settle alleged violations of federal and state environmental regulations at a chemical manufacturing plant in Hopewell, Va.” “The federal government’s complaint, which was filed with the proposed settlement, alleges violations of the federal Clean Air Act and federal and state regulations on the storage and disposal of hazardous substances. The alleged violations include: * inadequate safeguards to prevent or repair leaks of hazardous organic air pollutants; * inadequate repair and recordkeeping of air conditioners and refrigeration units containing ozone-depleting chlorofluorocarbons (CFCs); * untimely and incomplete reporting of benzene emissions; * untimely reporting to federal, state, or local emergency response officials of releases of ammonia, nitrogen oxide, dichlorodifluoromethane, sulfuric acid, sulfur dioxide, caprolactam, and benzene; * untimely reporting to federal, state or local emergency response officials regarding the manufacturing, use or storage of several hazardous substances or toxic chemicals; and * violations of hazardous waste storage and disposal regulations.”... more»
13. Pollution at Everett, Mass. Coal Tar Processing Plant
Honeywell International and two other companies each agreed to pay $100,000 to settle an environmental matter with the Massachusetts Secretary of Energy and Environmental Affairs and the National Oceanic and Atmospheric Administration (NOAA). It was alleged that Honeywell, National Grid NE Holdings 2 LLC, and Beazer East Inc. and/or their corporate predecessors ran a coal tar processing plant in Everett, Massachusetts between 1890 and 1960, and that oil and other pollutants were released from the plant into the Island End River, causing damage to the local fish population and other estuarine resources.... more»
14. Illegal Exportation of Chemicals to Mexico
The U.S. Department of Commerce “charged that, between December 2001 and February 2002, Honeywell made 12 shipments of hydrogen fluoride to Mexico from its Geismar, Louisiana facility without the required Department of Commerce export licenses. Hydrogen fluoride is controlled because it can assist in the development of chemical weapons. Pursuant to the settlement, Honeywell will pay a civil penalty of $36,000. Honeywell voluntarily self-disclosed the violations and cooperated fully with the investigation.”... more»
15. Amador Mine Cleanup
The Environmental Protection Agency, Honeywell and land developers settled a dispute over who should pay the cost of removing arsenic from the Central Eureka Mine in Amador County, Calif., a gold mine that was in operation from 1855 to 1958. The EPA declared the mine and surrounding property a Superfund site in the 1990s. After the EPA brought suit against Honeywell (successor to the Central Eureka Mining Company) and the developers in February 2006 to recover cleanup costs, Honeywell settled for $2 million.... more»
16. Allen v. Honeywell Retirement Earnings Plan
“Pursuant to a settlement approved by the U.S. District Court for the District of Arizona in February 2008, 18 of 21 claims alleged by plaintiffs in this class action lawsuit were dismissed with prejudice in exchange for approximately $35 million and the maximum aggregate liability for the remaining three claims (alleging that Honeywell impermissibly reduced the pension benefits of certain employees of a predecessor entity when the plan was amended in 1983 and failed to calculate benefits in accordance with the terms of the plan) was capped at $500 million. Any amounts payable, including the settlement amount, will be paid from the Company’s pension plan. We continue to expect to prevail on the remaining claims in light of applicable law and our substantial affirmative defenses, which have not yet been considered by the Court. Accordingly, we do not believe that a liability is probable of occurrence and reasonably estimable with respect to these claims and we have not recorded a provision for the remaining claims in our financial statements.”... more»
17. Maricopa County Air Quality Violations
Honeywell International settled alleged air quality violations at five of its facilities in and around Maricopa County, Ariz. The settlement covers a two-year period from March 1, 2006, to April 7, 2008. Under the terms of the deal with the Maricopa County Attorney’s Office and the Maricopa County Air Quality Department, Honeywell agreed to a total penalty amount of $3,025,480. Honeywell will pay 25 percent of the penalty; the rest will be offset through the cost of completing supplemental environmental improvement projects within the county. According to the County Attorney, there were over 1,500 “total violation days” (number of violations times number of days each violation occurred), and most occurred near Phoenix Sky Harbor International Airport. Many of the violations were self-reported by the company.... more»
18. Maricopa County Hazardous Waste and Environmental Cleanup Violations
Honeywell International agreed to pay the state of Arizona a $5 million civil penalty and fund a $1 million air cleanup project to settle an environmental lawsuit filed by the Arizona Department of Environmental Quality and the Arizona Attorney General in July 2004. The lawsuit alleged hazardous waste and environmental cleanup violations at a Honeywell facility near Sky Harbor International Airport in Phoenix occurring between 1974 and 2004. “Honeywell’s alleged violations included discharging chlorinated solvents such as vinyl chloride, dichloroethane, trichloroethane and trichloroethylene, into the Phoenix sewer system without a permit. Additional violations included failing to clean up historic releases of fuel from underground storage tanks at the airport facility and failing to fully disclose information regarding contamination over a period of several years at the facility.” The settlement also resolves three notices of violation issued against Honeywell by ADEQ between 2005 and 2007 involving improper storage and disposal of hazardous waste and failure to inform employees of proper handling and emergency procedures.... more»
19. Baton Rouge Plant Toxic Chemical Releases
Honeywell International paid the federal government $550,000 to settle civil Clean Air Act violations at its Baton Rouge plant in July and August 2003, when three separate toxic chemical releases resulted in the death of an employee and injuries to several others. In February 2007, Honeywell pled guilty to two criminal counts in connection with the fatal chemical release incident and was sentenced to two years probation and ordered to pay $12 million in fines and restitution (see Honeywell International instance, “Negligently Causing the Release of Hazardous Air Pollutants.”)... more»
20. Violations of the False Claims Act (Department of Defense and NASA)
"Honeywell International Inc. will pay the United States $2.6 million to resolve allegations that the company violated the False Claims Act 31 U.S.C. § 3729, et seq., the Justice Department announced today. The government alleges that Honeywell did not properly test electrostatic protective metallic sheets which had been qualified by the Department of the Navy for use in packaging over 186,000 sensitive parts used by the Department of Defense (DoD) and the National Aeronautic and Space Administration (NASA)."... more»
21. Violations of the Louisiana Environmental Quality Act
On October 28, 2002, the Louisiana Department of Environmental Quality issued a penalty assessment for $110,675.39 for wastewater discharges, sampling deficiencies, and other violations of the Environmental Quality Act. Subsequently, Honeywell and the DEQ agreed to settle the matter for $91,000.... more»
22. Excessive Harmful Emissions (Virginia)
On August 26, 2002, a consent order was issued by the Virginia Department of Environmental Quality, stating that Honeywell agreed to pay $69,705 to settle alleged violations of environmental law and regulations, including the release of excessive harmful emissions.... more»
23. Unauthorized Chemical Discharge (Virginia)
On October 4, 2002, the Virginia Department of Environmental Quality issued a consent order stating that Honeywell voluntarily agreed to pay $47,280 to settle alleged environmental violations. These included several 2000 unauthorized discharges and a chemical spill in 2001.... more»
24. Violation of Dredging Permit (Virginia)
In January 2000, the Virginia Department of Environmental Quality issued a permit to Honeywell for dredging to provide adequate river depth for one of the company's structures. Honeywell allegedly failed to inform the DEQ that solids in the river exceeded the permit's provisions. According to a consent decree, Honeywell agreed to pay a civil charge of $12,000.... more»
25. Violations of Water Quality Standards (Virginia)
In May 2003, Honeywell reported a discharge into a body of water, which the Virginia Department of Environmental Quality believed led to a fishkill. A cross-connection in a Honeywell plant sewer system allegedly caused the incident. In March 2004, Honeywell agreed to pay a civil charge of $12,000 to settle the violations.... more»
26. Violations of Virginia Waste Management Regulations
In 2003, the Virginia Department of Environmental Quality conducted two inspections of one of Honeywell's facilities. Several violations of Virginia's waste management regulations were found. Honeywell agreed to pay a civil charge of $13,150 to settle the violations.... more»
27. Unauthorized Discharges of Excessive Carbon Emissions (Virginia)
In 2004, equipment failures at Honeywell subsidiary Honeywell Nylon's facility caused several unauthorized discharges of excessive carbon emissions. Honeywell Nylon agreed to pay $2400 to settle the alleged violations.... more»
28. Water Pollution and Contamination (New York)
On February 17, 2004, the New York State Department of Environmental Conservation (DEC) announced that the department had "entered into consent orders with Honeywell International, Inc. to address contamination entering Onondaga Lake from certain locations in the surrounding area. Under an additional agreement with DEC, Honeywell...paid the State $4.2 million in past oversight costs...Honeywell has paid $4.2 million to the State for past costs associated with the State's oversight activities. In addition, the consent orders signed by Honeywell and DEC begin the cleanup process at certain locations around Onondaga Lake."... more»
29. EEOC v. Honeywell, Inc. (Age Discrimination)
On September 28, 2004, Honeywell, Inc. and the Equal Employment Opportunity Commission signed a consent decree resolving claims that Honeywell "laid off, terminated, and demoted sales managers and sales representatives in various locations nationwide because of their age...The suit was resolved with a two-year consent decree that requires defendant to pay amounts ranging from $275,000 to $475,000 (which include attorney's fees and pension benefits) to six Charging Parties, and $8,000 each to 25 class members, for a total of $2,150,000."... more»
30. Negligently Causing the Release of Hazardous Air Pollutants
In July 2003, a toxic chemical release at Honeywell’s Baton Rouge, Louisiana plant killed employee Delvin Henry. In February 2007, Honeywell pled guilty to one count of negligently causing the release of hazardous air pollutants and negligently placing another person in imminent danger of death, in violation of the federal Clean Air Act. Honeywell was sentenced to two years probation and ordered to pay an $8 million criminal fine, $4 million in restitution ($2,000,000 to Henry’s three children, $2,000,000 to the community) and a $125 special assessment. In September 2009, Honeywell paid $550,000 to settle this and two other chemical release incidents that also occurred at the plant in 2003 (see Honeywell International instance, “Baton Rouge Plant Toxic Chemical Releases”).... more»
31. Defective Seat Belt
A federal jury ordered Honeywell International Inc. to pay $24 million in damages to the parents of Lauren Frazier, who died when a seat belt manufactured by Honeywell failed in an accident in which her Chevrolet Tahoe flipped over. The jury found the seat belt defective and attributed 5 percent of the fault to General Motors and 95 percent to Honeywell. In August 2007, the judge reduced the award to $9.75 million.... more»
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