DoD's $293M CROWS IDIQ with Kongsberg Defence & Aerospace AS: A 5-year contract for advanced navigation systems

Contract Overview

Contract Amount: $293,768,439 ($293.8M)

Contractor: Kongsberg Defence & Aerospace AS

Awarding Agency: Department of Defense

Start Date: 2007-08-21

End Date: 2012-09-30

Contract Duration: 1,867 days

Daily Burn Rate: $157.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Defense

Official Description: PRODUCTION AND DELIVERY OF CROWS - IDIQ

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $293.8 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: PRODUCTION AND DELIVERY OF CROWS - IDIQ Key points: 1. The contract awarded to Kongsberg Defence & Aerospace AS for CROWS systems represents a significant investment in advanced military technology. 2. Competition was full and open, suggesting a robust price discovery process for these specialized navigation instruments. 3. The contract duration of 1867 days (approx. 5 years) indicates a long-term need for these systems. 4. The NAICS code 334511 points to the manufacturing of search, detection, and navigation instruments, a critical sector for defense.

Value Assessment

Rating: good

The total award amount of $293,768,439 over approximately five years suggests a substantial per-unit cost, typical for complex defense systems. Benchmarking against similar advanced navigation systems would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment is expected to drive favorable pricing and ensure the government receives best value.

Taxpayer Impact: Full and open competition generally leads to taxpayer savings by fostering a market-driven price for goods and services, ensuring funds are used efficiently.

Public Impact

Enhances military operational capabilities through advanced navigation technology. Supports the Department of the Army's strategic objectives in defense and surveillance. Contributes to the domestic manufacturing base for critical defense systems. Potential for technological advancements in navigation systems impacting civilian applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on complex, long-term defense contracts.
Dependence on a single contractor for critical system components.
Risk of technological obsolescence over the contract's lifespan.

Positive Signals

Awarded under full and open competition, ensuring market-based pricing.
Addresses a critical need for advanced navigation systems.
Long-term contract provides stability for production and delivery.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of advanced navigation and guidance systems. Spending in this area is crucial for maintaining military readiness and technological superiority, with benchmarks often driven by R&D intensity and specialized production requirements.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to a large aerospace company, suggesting that small businesses may have participated as subcontractors rather than prime contractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, implying oversight from relevant military and procurement agencies. Further details on specific oversight mechanisms and performance reviews would be needed for a comprehensive assessment.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration may lead to price escalation.
Potential for sole-source subcontracting impacting overall cost.
Dependence on specific technological advancements.
Geopolitical factors affecting international supply chains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $293.8 million to KONGSBERG DEFENCE & AEROSPACE AS. PRODUCTION AND DELIVERY OF CROWS - IDIQ

Who is the contractor on this award?

The obligated recipient is KONGSBERG DEFENCE & AEROSPACE AS.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $293.8 million.

What is the period of performance?

Start: 2007-08-21. End: 2012-09-30.

What is the specific technological advantage provided by the CROWS system compared to previous navigation technologies?

The CROWS (Combat Reconnaissance Observation and Weapon System) likely offers enhanced precision, real-time threat detection, and integrated targeting capabilities beyond traditional navigation systems. Its advanced sensors and processing power enable superior situational awareness and operational effectiveness in complex combat environments, representing a significant leap in military technology.

What are the primary risks associated with the long-term production and maintenance of these advanced navigation systems?

Key risks include the potential for technological obsolescence as newer systems emerge, supply chain disruptions for specialized components, and the challenge of maintaining highly skilled personnel for production and repair. Furthermore, the complexity of the systems could lead to unexpected maintenance costs and potential performance degradation over the contract's extended duration.

How effectively does this contract leverage competition to ensure optimal value for taxpayer investment in defense technology?

The contract's award under 'full and open competition' is a strong indicator of effective value realization. This approach allows multiple qualified vendors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The resulting pricing is more likely to reflect market value, maximizing the return on taxpayer investment.

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: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN06R1409

Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kongsberg Gruppen ASA (UEI: 518910914)

Address: KIRKEG?RDSVEIEN 45, KONGSBERG

Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $293,768,439

Exercised Options: $293,768,439

Current Obligation: $293,768,439

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN07D0018

IDV Type: IDC

Timeline