DoD's $10.57M contract for Crows units awarded to Kongsberg Defence & Aerospace AS

Contract Overview

Contract Amount: $105,710,000 ($105.7M)

Contractor: Kongsberg Defence & Aerospace AS

Awarding Agency: Department of Defense

Start Date: 2011-02-09

End Date: 2011-08-10

Contract Duration: 182 days

Daily Burn Rate: $580.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DO FOR QUANTITY OF CROWS UNITS BASED UPON UCA MODIFICATION SIGNED UNDER P00023

Plain-Language Summary

Department of Defense obligated $105.7 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DO FOR QUANTITY OF CROWS UNITS BASED UPON UCA MODIFICATION SIGNED UNDER P00023 Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are evaluated based on contractor performance and contract type. 4. Performance context is understood through the contract duration and delivery order nature. 5. Sector positioning places this contract within the defense manufacturing industry. 6. The contract type is firm fixed price, offering cost certainty to the government.

Value Assessment

Rating: good

The contract value of $10.57 million for Crows units appears reasonable given the firm fixed price structure and the specialized nature of defense equipment. Benchmarking against similar defense system procurements suggests that pricing is within expected ranges, though specific per-unit cost data is not publicly available for direct comparison. The award to a known defense contractor like Kongsberg Defence & Aerospace AS also suggests a level of established pricing and capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders, suggested by the 'no' field indicating 4 bids received, generally fosters a competitive environment. This level of competition is expected to drive more favorable pricing and terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to obtain the best possible value. It minimizes the risk of overpayment and encourages innovation among potential suppliers.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Army, receiving critical search and detection systems. The services delivered include the provision of advanced Crows (Combat Remotely Operated Weapon Station) units. The geographic impact is primarily within the defense supply chain and operational theaters where these systems are deployed. Workforce implications include support for specialized manufacturing and technical roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single supplier for future modifications or sustainment if not managed proactively.
The 182-day duration for delivery might pose challenges if there are unforeseen supply chain disruptions for specialized components.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed price contract provides cost certainty and limits the government's exposure to cost overruns.
The contractor, Kongsberg Defence & Aerospace AS, is an established entity in the defense sector, implying experience and capability.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on advanced weapon systems and sensor technology. The market for such specialized military equipment is characterized by high barriers to entry, significant R&D investment, and stringent government oversight. Comparable spending benchmarks would involve other procurements of advanced targeting and weapon station systems for military vehicles, often involving multi-million dollar awards.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. However, as a large prime contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to Kongsberg Defence & Aerospace AS. The extent of small business subcontracting would depend on the prime contractor's own policies and the availability of qualified small business suppliers for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm fixed price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated through contract award databases, though detailed technical specifications and performance metrics may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Combat Remotely Operated Weapon Stations (CROWS)
Defense Procurement
Weapon System Manufacturing
Department of the Army Contracts
Search and Detection Systems

Risk Flags

Short Delivery Window
Specialized Defense Technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.7 million to KONGSBERG DEFENCE & AEROSPACE AS. DO FOR QUANTITY OF CROWS UNITS BASED UPON UCA MODIFICATION SIGNED UNDER P00023

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 $105.7 million.

What is the period of performance?

Start: 2011-02-09. End: 2011-08-10.

What is the specific capability and intended use of the Crows units procured under this contract?

The Crows units procured under this contract are likely the Combat Remotely Operated Weapon Stations, a system designed to allow soldiers to operate a mounted machine gun or grenade launcher from within an armored vehicle. This provides enhanced protection for the operator and improved accuracy and stability for the weapon. The specific modification mentioned ('DO FOR QUANTITY OF CROWS UNITS BASED UPON UCA MODIFICATION SIGNED UNDER P00023') suggests this is a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a modification to an existing contract, likely for the Army's vehicle platforms. These systems are crucial for providing mobile, protected firepower against a range of threats in various operational environments.

How does the awarded price of $10.57 million compare to historical spending on similar Crows systems by the Department of Defense?

Direct historical spending comparisons for this specific delivery order are challenging without access to detailed contract histories and unit pricing. However, the Department of Defense has procured numerous Crows systems and variants over the years, with contract values often in the tens to hundreds of millions of dollars for larger quantities or development programs. The $10.57 million for a specific quantity of units, awarded under full and open competition, suggests a potentially competitive price point for the capabilities delivered. The 'no' field indicating 4 bids received provides some assurance that the price was vetted against multiple offers, implying it is likely aligned with market expectations for such advanced defense equipment.

What are the key performance indicators (KPIs) or quality assurance measures associated with this contract?

While specific KPIs are not detailed in the provided data, typical performance and quality assurance measures for defense hardware contracts include adherence to technical specifications, delivery schedules, and operational readiness upon delivery. For Crows units, this would involve ensuring the system's reliability, accuracy, integration capabilities with host vehicles, and survivability in intended operating conditions. The firm fixed price nature of the contract incentivizes the contractor to meet these requirements efficiently. The government would likely conduct inspections, testing, and acceptance procedures before final payment, ensuring the delivered units meet all contractual obligations and performance standards.

What is Kongsberg Defence & Aerospace AS's track record with similar defense systems and contracts?

Kongsberg Defence & Aerospace AS is a well-established Norwegian company with a significant global presence in the defense industry. They have a strong track record in developing and manufacturing advanced systems, including remote weapon stations, missile systems, and naval strike capabilities. Their experience with Crows-like systems is substantial, and they are known for producing high-quality, technologically advanced defense products. Awards to Kongsberg often stem from competitive processes where their technical expertise, product reliability, and competitive pricing are recognized. Their history suggests a capability to deliver complex defense systems meeting stringent military requirements.

What is the potential risk associated with the short contract duration of 182 days for delivery?

The 182-day duration for this delivery order indicates a relatively short timeframe for the production and delivery of potentially complex Crows units. The primary risk associated with such a short duration is the potential for delays due to unforeseen supply chain issues, manufacturing complexities, or integration challenges. If the contractor, Kongsberg Defence & Aerospace AS, underestimated the production lead times or encountered unexpected hurdles, meeting the deadline could become difficult. However, the firm fixed price nature of the contract means the government's cost is fixed regardless of minor delays, but significant delays could impact operational readiness. The contractor's experience and robust production planning are key mitigating factors against this risk.

How does this contract fit into the broader landscape of US military modernization efforts, particularly for ground vehicles?

This contract for Crows units directly supports the US military's ongoing efforts to modernize its ground vehicle fleets by enhancing their lethality, survivability, and situational awareness. Remote weapon stations like Crows are critical upgrades that allow for the integration of advanced weaponry and optics onto existing and new vehicle platforms without exposing the operator to direct threats. This aligns with modernization goals focused on improving force protection, enabling precision engagement, and adapting to evolving battlefield threats. Procurements like this demonstrate the Army's commitment to equipping its soldiers with state-of-the-art technology to maintain a combat advantage.

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: 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: $105,710,000

Exercised Options: $105,710,000

Current Obligation: $105,710,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN07D0018

IDV Type: IDC

Timeline