DoD Awards $36.2M for Small Arms to Kongsberg Defence & Aerospace
Contract Overview
Contract Amount: $36,246,911 ($36.2M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2022-10-31
End Date: 2024-02-28
Contract Duration: 485 days
Daily Burn Rate: $74.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER TO SATISFY THE MINIMUM GURANTEE.
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $36.2 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DELIVERY ORDER TO SATISFY THE MINIMUM GURANTEE. Key points: 1. Significant award to a single vendor for small arms. 2. Full and open competition was utilized. 3. Potential for price escalation given the duration. 4. Focus on ordnance manufacturing sector.
Value Assessment
Rating: fair
The award amount of $36.2M for a 485-day duration appears reasonable for specialized ordnance. Benchmarking against similar contracts for small arms manufacturing is difficult without more specific product details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism are not provided, making it hard to assess if the best possible price was achieved.
Taxpayer Impact: Taxpayer funds are being used for essential defense procurement. The competitive nature of the award aims to ensure value for money, but ongoing monitoring is needed.
Public Impact
Ensures supply of critical small arms and ordnance for the Army. Supports a key defense manufacturing capability. Potential impact on availability and cost of specific weapon systems.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for price creep over the contract duration.
- Limited visibility into specific product details and unit costs.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense needs.
- Firm fixed price contract type limits cost risk.
Sector Analysis
This award falls within the defense manufacturing sector, specifically focusing on small arms and ordnance. Spending in this area is critical for national security, and benchmarks can vary widely based on the specific weapon systems and quantities procured.
Small Business Impact
The awardee is Kongsberg Defence & Aerospace AS, a large foreign entity. There is no indication that small businesses were involved as subcontractors in this specific delivery order.
Oversight & Accountability
The Department of the Army is the procuring agency. Standard oversight mechanisms for defense contracts should apply, including performance monitoring and financial accountability.
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 of price escalation.
- Lack of specific product details hinders cost analysis.
- Potential for supply chain disruptions impacting delivery.
- Sole awardee for this specific order.
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 $36.2 million to KONGSBERG DEFENCE & AEROSPACE AS. DELIVERY ORDER TO SATISFY THE MINIMUM GURANTEE.
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 $36.2 million.
What is the period of performance?
Start: 2022-10-31. End: 2024-02-28.
What is the specific type of small arms and ordnance being procured, and how does this impact the unit cost benchmark?
The data specifies 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' but lacks granular detail on the exact items. The unit cost benchmark is therefore unavailable. Different types of ordnance, from small caliber ammunition to larger weapon systems, have vastly different cost structures and market prices, making a general benchmark impossible without further specification.
Given the 485-day duration, what are the primary risks associated with price escalation or performance delays?
The primary risk with a long-duration contract is potential price escalation due to inflation, raw material cost fluctuations, or changes in labor costs. Performance delays could arise from supply chain disruptions, manufacturing challenges, or unforeseen technical issues. The firm fixed price contract type mitigates some of the financial risk for the government, but delays can still impact operational readiness.
How effective is the 'full and open competition' method in ensuring the best value for this specific type of defense procurement?
Full and open competition is generally the most effective method for ensuring best value by fostering a competitive environment. However, for highly specialized defense items like ordnance, the pool of qualified bidders might be limited. The effectiveness hinges on the clarity of the solicitation, the competitiveness of the bids received, and the government's ability to evaluate them accurately against technical and cost requirements.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kongsberg Gruppen ASA
Address: KIRKEGAARDSVEIEN 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: $36,246,911
Exercised Options: $36,246,911
Current Obligation: $36,246,911
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN23D0003
IDV Type: IDC
Timeline
Start Date: 2022-10-31
Current End Date: 2024-02-28
Potential End Date: 2024-02-28 12:02:00
Last Modified: 2024-02-07
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