DOD Awards $166.5M for CROWS MK47 Integration & Prototype to Kongsberg Defence & Aerospace
Contract Overview
Contract Amount: $16,652,150 ($16.7M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2009-09-25
End Date: 2013-06-14
Contract Duration: 1,358 days
Daily Burn Rate: $12.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CROWS MK47 INTEGRATION&PROTOTYPE
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $16.7 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: CROWS MK47 INTEGRATION&PROTOTYPE Key points: 1. Contract awarded for integration and prototyping of the CROWS MK47 system. 2. Sole-source award to Kongsberg Defence & Aerospace AS, raising competition concerns. 3. Significant investment in defense technology, potentially impacting battlefield capabilities. 4. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $166.5 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no opportunity for other vendors to offer competitive bids.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Enhances military capabilities with advanced weapon station technology. Potential for increased operational effectiveness in defense scenarios. Investment in specialized defense manufacturing and technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Investment in critical defense technology
- Potential for enhanced military capabilities
Sector Analysis
This contract is within the defense sector, specifically focusing on the manufacturing of advanced weapon systems and related instrumentation. Spending benchmarks in this niche area are highly variable based on technological complexity and system capabilities.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large foreign entity. This suggests limited direct opportunity for small businesses in this particular award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is justified and the project delivers the intended capabilities without undue cost to the government.
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 lacks competition
- Potential for inflated pricing
- Limited transparency in price determination
- Dependency on a single foreign supplier
- No small business participation noted
Tags
search-detection-navigation-guidance-aer, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to KONGSBERG DEFENCE & AEROSPACE AS. CROWS MK47 INTEGRATION&PROTOTYPE
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 $16.7 million.
What is the period of performance?
Start: 2009-09-25. End: 2013-06-14.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The government would have conducted a price analysis, potentially using historical data, cost breakdowns from the contractor, or comparisons to similar, albeit not identical, systems to establish a fair and reasonable price. However, without competitive bids, this analysis is inherently less robust.
What are the long-term strategic implications of awarding this contract solely to Kongsberg Defence & Aerospace?
Sole-source awards can foster dependency on a single supplier, potentially limiting future options and innovation. It may also impact the development of domestic industrial capabilities if foreign suppliers become the primary source for critical technologies. The long-term strategy should consider how to maintain competitive access to such systems or develop domestic alternatives.
How will the effectiveness and performance of the CROWS MK47 integration and prototype be independently verified and validated?
Independent verification and validation (IV&V) are crucial for sole-source contracts. The Department of Defense likely has established testing and evaluation protocols, potentially involving third-party testers or specific government agencies, to assess the prototype's performance against requirements. This ensures the system meets operational needs before potential wider deployment.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W15QKN09R0481
Offers Received: 1
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, Federally Funded Research and Development Corp, Foreign Owned, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $16,652,150
Exercised Options: $16,652,150
Current Obligation: $16,652,150
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-25
Current End Date: 2013-06-14
Potential End Date: 2013-07-26 00:00:00
Last Modified: 2013-07-08
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