DoD Awards $34.8M for CROWS Technical Refresh Systems to Kongsberg Defence & Aerospace
Contract Overview
Contract Amount: $34,830,455 ($34.8M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2020-02-26
End Date: 2023-03-01
Contract Duration: 1,099 days
Daily Burn Rate: $31.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR COMMON REMOTELY OPERATED WEAPON STATION (CROWS) LOW PROFILE (LP) TECHNICAL REFRESH (TR) SYSTEMS.
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $34.8 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DELIVERY ORDER FOR COMMON REMOTELY OPERATED WEAPON STATION (CROWS) LOW PROFILE (LP) TECHNICAL REFRESH (TR) SYSTEMS. Key points: 1. Significant investment in advanced weapon station technology. 2. Sole-source award to Kongsberg raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on modernizing Army's combat capabilities.
Value Assessment
Rating: fair
The award amount of $34.8M for a technical refresh of weapon systems appears substantial. Without comparable contract data for similar technical refreshes or new systems, a precise value assessment is difficult. The firm fixed-price contract type offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher prices, impacting taxpayer value for this defense procurement.
Public Impact
Enhances soldier protection and combat effectiveness through upgraded weapon systems. Supports modernization efforts within the U.S. Army's ground vehicle fleet. Ensures continued operational readiness by refreshing existing technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment due to lack of competitive bidding.
- Long contract duration (1099 days) may not reflect current market prices.
Positive Signals
- Addresses critical modernization needs for weapon systems.
- Firm fixed-price contract provides cost predictability.
- Supports a key defense contractor.
Sector Analysis
This procurement falls within the defense sector, specifically related to weapon systems and ordnance. Spending benchmarks for technical refreshes of such systems can vary widely based on technological advancements and system complexity. The $34.8M award is a significant sum for a single delivery order.
Small Business Impact
The awardee, Kongsberg Defence & Aerospace AS, is a large foreign-owned company. There is no indication that small businesses were involved as subcontractors or partners in this specific delivery order, which is common for sole-source awards of this nature.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Further oversight may be needed to understand the justification for not competing the requirement and to ensure proper accountability for taxpayer funds.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award.
- Lack of transparency in justification for sole-sourcing.
- Potential for inflated pricing.
- Long contract duration.
- No indication of small business participation.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to KONGSBERG DEFENCE & AEROSPACE AS. DELIVERY ORDER FOR COMMON REMOTELY OPERATED WEAPON STATION (CROWS) LOW PROFILE (LP) TECHNICAL REFRESH (TR) SYSTEMS.
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 $34.8 million.
What is the period of performance?
Start: 2020-02-26. End: 2023-03-01.
What is the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award is typically based on factors such as unique capabilities, urgent need, or lack of adequate competition. Without specific documentation, it's impossible to determine the exact reason. However, sole-source awards often raise concerns about potential price inflation and reduced innovation compared to competitive processes.
How does the cost of this technical refresh compare to industry benchmarks for similar upgrades?
Assessing the cost-effectiveness requires comparing this $34.8M award against industry benchmarks for similar technical refreshes of remotely operated weapon stations. Without access to detailed cost breakdowns or data on comparable contracts, it is difficult to definitively state if the price is competitive. The firm fixed-price nature provides some cost control, but the lack of competition is a key factor.
What is the expected impact of this technical refresh on the operational effectiveness of the Army's ground vehicles?
This technical refresh is expected to significantly enhance the operational effectiveness of the Army's ground vehicles by upgrading the Common Remotely Operated Weapon Station (CROWS) systems. Improvements likely include enhanced targeting, increased reliability, better integration with vehicle platforms, and potentially new functionalities, all contributing to improved soldier safety and mission success.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kongsberg Gruppen ASA
Address: KIRKEGARDSVEIEN 45, KONGSBERG
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,830,455
Exercised Options: $34,830,455
Current Obligation: $34,830,455
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN18D0135
IDV Type: IDC
Timeline
Start Date: 2020-02-26
Current End Date: 2023-03-01
Potential End Date: 2023-03-01 12:03:00
Last Modified: 2022-03-09
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- Production and Delivery of Crows - Idiq — $293.8M (Department of Defense)
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View all Kongsberg Defence & Aerospace AS federal contracts →
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