DoD's $117M Kongsberg Contract for Navigation Systems Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $117,018,440 ($117.0M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2008-05-29
End Date: 2012-09-30
Contract Duration: 1,585 days
Daily Burn Rate: $73.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CROWS ORDERING PERIOD 2 - IDIQ
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $117.0 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: CROWS ORDERING PERIOD 2 - IDIQ Key points: 1. Contract Value: $117 million over 1585 days. 2. Competition: Awarded under full and open competition. 3. Risk: Moderate risk due to firm fixed price contract and potential for cost overruns. 4. Sector: Defense sector, specifically navigation systems.
Value Assessment
Rating: good
The contract value of $117 million for navigation systems appears reasonable given the 1585-day duration. Benchmarking against similar DoD contracts for complex navigation equipment suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source awards.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through full and open competition, ensuring funds are used efficiently for essential defense equipment.
Public Impact
Ensures the Department of Defense has access to critical navigation and guidance systems. Supports technological advancement in military navigation equipment. Provides long-term sustainment and potential upgrades for essential systems.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for scope creep in long-term contracts.
- Reliance on a single contractor for critical components.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of navigation and guidance systems. Spending in this area is critical for military operations and technological superiority, with benchmarks varying widely based on system complexity and quantity.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the DoD. Oversight would typically involve program managers and contracting officers ensuring performance and compliance with contract terms.
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
- Contract duration is long, increasing obsolescence risk.
- Firm fixed price may lead to quality compromises if costs rise.
- Lack of small business participation noted.
- Specific system capabilities not detailed, limiting full assessment.
Tags
search-detection-navigation-guidance-aer, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.0 million to KONGSBERG DEFENCE & AEROSPACE AS. CROWS ORDERING PERIOD 2 - 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 $117.0 million.
What is the period of performance?
Start: 2008-05-29. End: 2012-09-30.
What is the specific technological advancement or capability this contract aims to procure?
The contract focuses on 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' This suggests procurement of advanced systems crucial for military operations, potentially including radar, sonar, GPS, inertial navigation, or other sophisticated guidance technologies essential for aircraft, vessels, and ground vehicles.
What are the primary risks associated with the firm fixed price contract for these navigation systems?
The primary risk with a firm fixed price contract for complex navigation systems is that the contractor may face unforeseen cost increases due to material shortages, design challenges, or labor issues. If these costs exceed the fixed price, the contractor might cut corners on quality or seek change orders, potentially impacting system performance or long-term reliability.
How does the duration of the contract (1585 days) impact the effectiveness of the procured navigation systems?
The extended duration suggests a need for long-term sustainment, upgrades, or a phased deployment of these navigation systems. While it ensures continuous availability, it also risks the systems becoming technologically obsolete before the contract ends, potentially diminishing their effectiveness against evolving threats or operational requirements.
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: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN06R1409
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
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: $117,018,440
Exercised Options: $117,018,440
Current Obligation: $117,018,440
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN07D0018
IDV Type: IDC
Timeline
Start Date: 2008-05-29
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2021-08-04
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