DoD Awards $96.6M for Crows, Spares, and Depot to Kongsberg Defence & Aerospace AS

Contract Overview

Contract Amount: $96,632,640 ($96.6M)

Contractor: Kongsberg Defence & Aerospace AS

Awarding Agency: Department of Defense

Start Date: 2009-09-23

End Date: 2012-10-03

Contract Duration: 1,106 days

Daily Burn Rate: $87.4K/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 0033 IS FOR CROWS, SPARES, AND DEPOT

Plain-Language Summary

Department of Defense obligated $96.6 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DELIVERY ORDER 0033 IS FOR CROWS, SPARES, AND DEPOT Key points: 1. Significant award for specialized aerospace components. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to specialized nature and contract duration. 4. Spending falls within the IT/Defense sector for navigation systems.

Value Assessment

Rating: good

The award amount of $96.6M over three years appears reasonable for specialized aerospace components. Benchmarking against similar complex system procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The number of bids received would further clarify the price discovery effectiveness.

Taxpayer Impact: Taxpayer funds are being used for critical defense components, with competition aiming to ensure efficient use of these funds.

Public Impact

Ensures availability of critical Crows, spares, and depot support for defense operations. Supports advanced navigation and guidance systems essential for military readiness. Potential for technological advancements in aerospace systems through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of over three years.
  • Specialized nature of components may limit future competition.
  • Reliance on a single awardee for critical spares.

Positive Signals

  • Awarded under full and open competition.
  • Supports essential defense capabilities.
  • Clear contract period and scope.

Sector Analysis

This spending falls within the Defense sector, specifically related to the manufacturing of search, detection, navigation, guidance, and related systems. Benchmarks for similar complex aerospace system procurements would be relevant.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor is a large foreign entity, suggesting limited direct opportunities for U.S. small businesses on this specific award.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is the awarding agency. Standard DoD oversight mechanisms for contract performance and financial management would apply.

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

  • Potential for sole-source dependency on spares.
  • Long contract duration increases risk exposure.
  • Reliance on foreign supplier.
  • Complexity of specialized aerospace components.

Tags

search-detection-navigation-guidance-aer, department-of-defense, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $96.6 million to KONGSBERG DEFENCE & AEROSPACE AS. DELIVERY ORDER 0033 IS FOR CROWS, SPARES, AND DEPOT

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 $96.6 million.

What is the period of performance?

Start: 2009-09-23. End: 2012-10-03.

What is the specific nature of 'Crows' and their criticality to the Army's operations?

'Crows' likely refers to a specific type of electronic warfare or targeting system, possibly related to Counter-Rocket, Artillery, and Mortar systems. Their criticality stems from providing essential situational awareness and defense capabilities against indirect fire threats, directly impacting soldier survivability and mission effectiveness on the battlefield.

What are the primary risks associated with relying on Kongsberg Defence & Aerospace AS for these specialized components?

Primary risks include potential supply chain disruptions for specialized parts, dependence on a single foreign supplier for critical systems, and the possibility of cost overruns if unforeseen technical challenges arise during the contract period. Geopolitical factors could also impact delivery or support.

How effectively does this contract contribute to the overall technological advancement and readiness of the U.S. Army's navigation and guidance systems?

This contract directly contributes by ensuring the continued availability and maintenance of existing advanced systems. While it focuses on spares and depot support, it implicitly supports readiness. Direct technological advancement would depend on any R&D or upgrade clauses within the delivery order, which are not detailed here.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, 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 (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: $321,070,140

Exercised Options: $96,632,640

Current Obligation: $96,632,640

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN07D0018

IDV Type: IDC

Timeline

Start Date: 2009-09-23

Current End Date: 2012-10-03

Potential End Date: 2013-02-06 00:00:00

Last Modified: 2015-05-18

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