Marines Award $25.7M for Remote Weapon Systems, Competition Ensures Value
Contract Overview
Contract Amount: $25,740,932 ($25.7M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2023-06-27
End Date: 2026-05-29
Contract Duration: 1,067 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR REMOTE WEAPON SYSTEMS AND SPARE PARTS FOR THE MARINES.
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $25.7 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DELIVERY ORDER FOR REMOTE WEAPON SYSTEMS AND SPARE PARTS FOR THE MARINES. Key points: 1. Significant investment in advanced weapon systems for the Marine Corps. 2. Competition likely drove favorable pricing for these specialized systems. 3. Potential risks include long-term sustainment and technological obsolescence. 4. Spending falls within the defense sector, specifically ordnance manufacturing.
Value Assessment
Rating: good
The $25.7 million award for remote weapon systems appears reasonable given the specialized nature of the equipment. Benchmarking against similar advanced weapon system contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is a positive indicator for price discovery and achieving a competitive market price. This method allows all qualified vendors to bid, fostering a more robust selection process.
Taxpayer Impact: The use of full and open competition suggests taxpayers are likely receiving fair value for this significant defense expenditure.
Public Impact
Enhances Marine Corps' combat capabilities with advanced remote weapon systems. Supports domestic manufacturing and technological advancement in defense. Ensures availability of critical spare parts for operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term sustainment costs not fully detailed.
- Potential for technological obsolescence in advanced systems.
- Dependence on a single manufacturer for specific components.
Positive Signals
- Awarded through full and open competition.
- Includes essential spare parts for operational readiness.
- Supports critical defense modernization efforts.
Sector Analysis
This contract falls within the defense sector, specifically the manufacturing of ordnance and related accessories. Spending benchmarks for similar advanced weapon systems are typically in the millions, making this award size consistent with industry norms.
Small Business Impact
While the primary contractor is a large entity, the contract may indirectly benefit small businesses through subcontracting opportunities within the defense supply chain. Further analysis would be needed to confirm direct small business participation.
Oversight & Accountability
The Department of the Army's oversight of this delivery order is crucial to ensure timely delivery, quality, and adherence to contract terms. Robust contract management will be key to maximizing the value of this investment.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for long-term sustainment costs to exceed initial estimates.
- Risk of technological obsolescence given rapid advancements in weaponry.
- Dependence on a single manufacturer could lead to supply chain vulnerabilities.
- Ensuring adequate training for operators and maintainers is crucial.
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 $25.7 million to KONGSBERG DEFENCE & AEROSPACE AS. DELIVERY ORDER FOR REMOTE WEAPON SYSTEMS AND SPARE PARTS FOR THE MARINES.
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 $25.7 million.
What is the period of performance?
Start: 2023-06-27. End: 2026-05-29.
What is the projected lifecycle cost of these remote weapon systems, including maintenance and upgrades?
The provided data focuses on the initial acquisition cost. A comprehensive lifecycle cost analysis would be necessary to understand the total investment required over the systems' operational lifespan. This should include projected expenses for maintenance, repair, spare parts, software updates, and potential upgrades to counter evolving threats or technological advancements.
How does the performance of these remote weapon systems compare to existing or alternative technologies in terms of effectiveness and safety?
The effectiveness and safety of these remote weapon systems are critical considerations. Benchmarking against current systems and exploring alternative technologies would reveal their advantages in lethality, precision, crew protection, and operational flexibility. Evaluating field reports and independent testing data is essential for a thorough assessment of their combat utility and risk mitigation.
What is the strategy for ensuring long-term availability of spare parts and technical support for these systems, especially given the specialized nature of the manufacturer?
Ensuring long-term support requires a proactive strategy. This could involve negotiating comprehensive sustainment contracts, fostering competition among secondary suppliers for parts, or developing in-house technical expertise. The government should also monitor the manufacturer's financial stability and explore options for technology transfer or alternative sourcing to mitigate risks associated with sole-source reliance.
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
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: $25,740,932
Exercised Options: $25,740,932
Current Obligation: $25,740,932
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: 2023-06-27
Current End Date: 2026-05-29
Potential End Date: 2026-05-29 12:05:00
Last Modified: 2025-01-08
More Contracts from 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 — $644.4M (Department of Defense)
- FY25 Launcher Missile Module (LMM)- Usmc — $434.7M (Department of Defense)
- Production and Delivery of Crows - Idiq — $293.8M (Department of Defense)
- UCA Long Lead Materials and Services — $260.4M (Department of Defense)
- Delivery Order 0039 IS for Common Remotely Operated Weapons Station. (crows) — $259.8M (Department of Defense)
View all Kongsberg Defence & Aerospace AS federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)