DoD Awards $189M for Crows II Spare Parts and Systems to Kongsberg Defence & Aerospace
Contract Overview
Contract Amount: $188,894,999 ($188.9M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2009-08-28
End Date: 2014-04-16
Contract Duration: 1,692 days
Daily Burn Rate: $111.6K/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: DELIVERY ORDER 0032 IS FOR CROWS II SPARE PARTS, CROWS SPLIT SCREENS, AND FSE
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $188.9 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DELIVERY ORDER 0032 IS FOR CROWS II SPARE PARTS, CROWS SPLIT SCREENS, AND FSE Key points: 1. Significant award for specialized defense components. 2. Sole-source award to Kongsberg Defence & Aerospace. 3. Long-term contract spanning over 1600 days. 4. Focus on critical navigation and guidance systems.
Value Assessment
Rating: fair
The award amount of $188.9 million for spare parts and systems appears substantial. Without specific unit cost data or benchmarks for similar Crows II components, a precise value assessment is difficult. However, the scale suggests a significant investment in maintaining operational readiness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor, Kongsberg Defence & Aerospace, was deemed capable of fulfilling the requirement. This limits price discovery and competition, potentially leading to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayer funds are directed to a single supplier for specialized defense equipment, potentially at a premium due to the lack of competitive bidding.
Public Impact
Ensures continued operational capability for critical defense systems. Supports specialized manufacturing and supply chains within the defense sector. Potential for increased costs to taxpayers due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration may not reflect current market pricing.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Ensures availability of critical spare parts.
- Supports a key defense contractor.
- Addresses specific, potentially unique, system requirements.
Sector Analysis
This award falls within the defense sector, specifically in the manufacturing of navigation and guidance systems. Spending in this area is often characterized by high R&D costs, specialized production, and long procurement cycles, with significant government oversight required.
Small Business Impact
The award was made to Kongsberg Defence & Aerospace, a large foreign-owned entity. There is no indication of subcontracting opportunities for small businesses within this specific delivery order, suggesting limited direct impact on the small business sector.
Oversight & Accountability
The award was a delivery order under a larger contract, implying some level of pre-negotiation and oversight. However, the sole-source nature warrants scrutiny to ensure fair pricing and necessity of the procured items.
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
- Sole-source award
- Lack of competitive bidding
- Limited transparency on unit costs
- Long contract duration
- Foreign-owned contractor
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 $188.9 million to KONGSBERG DEFENCE & AEROSPACE AS. DELIVERY ORDER 0032 IS FOR CROWS II SPARE PARTS, CROWS SPLIT SCREENS, AND FSE
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 $188.9 million.
What is the period of performance?
Start: 2009-08-28. End: 2014-04-16.
What is the justification for the sole-source award, and were alternative solutions or vendors considered?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or essential interoperability requirements that only one vendor can meet. For this Crows II contract, the Army likely determined that Kongsberg Defence & Aerospace possessed the exclusive rights or necessary expertise for these specific spare parts and systems, making competitive bidding impractical or detrimental to national security.
How does the per-unit cost of these spare parts compare to industry benchmarks or previous procurements?
Without access to detailed cost breakdowns or specific unit pricing data for the Crows II spare parts and split screens, a direct comparison to industry benchmarks or previous procurements is not feasible. The $188.9 million total award value provides scale but not granular cost-effectiveness. Further analysis would require access to the contract's detailed pricing structure.
What is the long-term strategic value of this sole-source award for the Department of Defense?
The long-term strategic value lies in ensuring the continued operational readiness and effectiveness of the Crows II system, which is critical for defense missions. By securing necessary spare parts and components through a dedicated award, the DoD mitigates risks of system downtime and maintains a vital capability. However, the sole-source nature necessitates ongoing vigilance regarding cost and performance.
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
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
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: $188,894,999
Exercised Options: $188,894,999
Current Obligation: $188,894,999
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: 2009-08-28
Current End Date: 2014-04-16
Potential End Date: 2014-04-16 00:00:00
Last Modified: 2025-01-31
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