DoD Awards $199M for Search, Detection, Navigation Systems to Kongsberg Defence & Aerospace
Contract Overview
Contract Amount: $199,053,123 ($199.1M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2010-04-20
End Date: 2010-12-29
Contract Duration: 253 days
Daily Burn Rate: $786.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CROWS -01S AND -03S ORDERING PERIOD 7
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $199.1 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: CROWS -01S AND -03S ORDERING PERIOD 7 Key points: 1. Significant award for advanced navigation and detection systems. 2. Competition was full and open, suggesting market engagement. 3. Potential for technological advancements in military operations. 4. Sector focus on specialized defense instrumentation.
Value Assessment
Rating: good
The award amount of $199M appears substantial for specialized systems. Benchmarking against similar complex defense contracts is necessary for a precise value assessment, but the fixed-price structure suggests cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely drove down costs compared to a sole-source procurement.
Public Impact
Enhances military capabilities in navigation and situational awareness. Supports advanced technology development within the defense sector. Potential for spin-off technologies benefiting civilian applications.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition
- Firm fixed price contract
- Awarded to established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of sophisticated navigation and detection systems. Spending in this area is critical for national security and often involves high R&D investment.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Standard DoD oversight processes would apply to this contract. Ensuring adherence to specifications and delivery schedules is key.
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 technological obsolescence
- Dependence on a single supplier for critical components
- Need for ongoing maintenance and upgrade costs
Tags
search-detection-navigation-guidance-aer, department-of-defense, pa, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $199.1 million to KONGSBERG DEFENCE & AEROSPACE AS. CROWS -01S AND -03S ORDERING PERIOD 7
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 $199.1 million.
What is the period of performance?
Start: 2010-04-20. End: 2010-12-29.
What is the specific technological advantage gained by these systems?
The specific technological advantage relates to enhanced precision and reliability in search, detection, and navigation for military platforms. These systems likely incorporate advanced sensor fusion, real-time data processing, and improved resistance to electronic warfare, providing superior operational effectiveness in complex environments.
What are the long-term risks associated with reliance on this specific technology?
Long-term risks include technological obsolescence if not continuously upgraded, potential vendor lock-in with Kongsberg, and the possibility of supply chain disruptions for specialized components. Dependence on a single system could also create vulnerabilities if the technology is compromised or fails.
How effective is the firm fixed-price model in managing costs for such advanced systems?
The firm fixed-price model is generally effective in controlling costs by shifting risk to the contractor. However, for highly complex and evolving defense systems, it can sometimes lead to contractor reluctance to incorporate innovations or potential disputes if unforeseen technical challenges arise, requiring careful contract management.
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: 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: $206,156,895
Exercised Options: $199,053,123
Current Obligation: $199,053,123
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN07D0018
IDV Type: IDC
Timeline
Start Date: 2010-04-20
Current End Date: 2010-12-29
Potential End Date: 2010-12-29 00:00:00
Last Modified: 2015-05-18
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