DoD awards $644M for M153 CROWS weapon station testing and engineering support
Contract Overview
Contract Amount: $644,354,221 ($644.4M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2012-08-17
End Date: 2020-10-21
Contract Duration: 2,987 days
Daily Burn Rate: $215.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD BASE CONTRACT FOR REQUIREMENTS FOR M153 COMMON REMOTELY OPERATED WEAPON STATION (CROWS) INITIAL FIRST ARTICLE TESTING, CROWS ENGINEERING SUPPORT, MANPOWER REPORTING, AND CONTRACT DATA REQUIREMENTS.
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $644.4 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: AWARD BASE CONTRACT FOR REQUIREMENTS FOR M153 COMMON REMOTELY OPERATED WEAPON STATION (CROWS) INITIAL FIRST ARTICLE TESTING, CROWS ENGINEERING SUPPORT, MANPOWER REPORTING, AND CONTRACT DATA REQUIREMENTS. Key points: 1. Significant contract value for specialized defense equipment. 2. Competition method was full and open, suggesting market availability. 3. Risk of cost overruns or schedule delays in complex weapon system development. 4. Sector is defense manufacturing, specifically small arms and ordnance.
Value Assessment
Rating: good
The contract value of $644.4 million over approximately 8 years suggests a substantial investment. Benchmarking against similar complex weapon system development contracts would be necessary for a precise assessment, but the duration and scope indicate a significant program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely able to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Full and open competition aims to secure the best possible pricing for taxpayers by leveraging market forces.
Public Impact
Enhances military capabilities with advanced weapon station technology. Supports critical defense manufacturing and associated jobs. Impacts readiness and effectiveness of ground forces. Potential for technological advancements in remote weapon systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in engineering support.
- Long contract duration increases risk of obsolescence or changing requirements.
- Dependence on a single contractor for critical support.
Positive Signals
- Full and open competition promotes price discovery.
- Firm-fixed-price contract type provides cost certainty.
- Clear definition of deliverables for testing and engineering.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on weapon systems. Spending benchmarks for similar advanced weapon system development and sustainment contracts would provide further context for this $644 million award.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the primary awardee is a large foreign defense contractor. There is no explicit mention of small business subcontracting goals or participation in this award.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for major weapon system acquisitions. The duration and value suggest it would be subject to regular program reviews and reporting.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk.
- Potential for cost growth in engineering support.
- Dependence on foreign prime contractor.
- Lack of explicit small business participation.
- Scope definition for engineering support could be broad.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $644.4 million to KONGSBERG DEFENCE & AEROSPACE AS. AWARD BASE CONTRACT FOR REQUIREMENTS FOR M153 COMMON REMOTELY OPERATED WEAPON STATION (CROWS) INITIAL FIRST ARTICLE TESTING, CROWS ENGINEERING SUPPORT, MANPOWER REPORTING, AND CONTRACT DATA REQUIREMENTS.
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 $644.4 million.
What is the period of performance?
Start: 2012-08-17. End: 2020-10-21.
What is the projected cost per unit for the M153 CROWS system based on this award, and how does it compare to industry benchmarks for similar systems?
The provided data does not offer a specific unit count for the M153 CROWS system, making a direct per-unit cost calculation impossible. To assess value, a comparison would require knowing the total number of units procured or the average cost per unit within the contract's scope, benchmarked against similar remotely operated weapon stations in the defense market.
What are the key performance indicators (KPIs) for the engineering support and testing phases, and how will contractor performance be measured against these KPIs to mitigate risks?
The contract details do not specify the exact KPIs for engineering support and testing. However, typical metrics would include successful completion of test objectives, adherence to technical specifications, timely delivery of engineering reports, and system reliability. Performance will likely be monitored through regular progress reports, technical reviews, and potentially contractor performance assessment reporting (CPARs).
How does the long-term sustainment and potential upgrade path for the M153 CROWS system align with the Army's future force structure and technological roadmaps?
This contract focuses on initial testing and engineering support, not long-term sustainment or upgrades. The alignment with future force structures depends on subsequent contracts and the system's adaptability. The Army's technology roadmaps would dictate if the CROWS platform is intended for modernization or eventual replacement, influencing the strategic value of this initial investment.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN11RF015
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: KIRKEG?RDSVEIEN 45, KONGSBERG
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $964,199,753
Exercised Options: $644,354,221
Current Obligation: $644,354,221
Actual Outlays: $-31,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-17
Current End Date: 2020-10-21
Potential End Date: 2020-10-21 12:10:00
Last Modified: 2024-04-24
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