DoD Awards $79.8M for Systems, Spare Parts, and Field Service Support to Kongsberg Defence & Aerospace AS
Contract Overview
Contract Amount: $79,856,298 ($79.9M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2023-09-22
End Date: 2026-07-30
Contract Duration: 1,042 days
Daily Burn Rate: $76.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ORDER FOR SYSTEMS, SPARE PARTS AND FIELD SERVICE TECHNICIAN SUPPORT.
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $79.9 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: ORDER FOR SYSTEMS, SPARE PARTS AND FIELD SERVICE TECHNICIAN SUPPORT. Key points: 1. Significant award for defense systems and support services. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Contract duration is over 1000 days, indicating long-term support needs. 4. The award is for spare parts and field service, crucial for operational readiness.
Value Assessment
Rating: good
The contract value of $79.8 million over approximately 3 years appears reasonable for specialized defense systems and support. Benchmarking against similar complex system support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives best value. The specific price discovery mechanisms within this competition are not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential defense systems and maintenance, supporting national security objectives. The competitive nature of the award aims to ensure efficient use of these funds.
Public Impact
Ensures operational readiness of critical defense systems. Supports advanced technology and specialized maintenance services. Contributes to the defense industrial base and associated jobs. Provides necessary spare parts to maintain system functionality. Field service technicians ensure timely repairs and upkeep.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration could lead to scope creep if not managed.
- Reliance on a single contractor for specialized parts and service.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type limits cost risk.
- Award supports critical defense capabilities.
Sector Analysis
This contract falls within the defense sector, specifically related to ordnance and accessories manufacturing. Spending in this area is driven by military readiness requirements and technological advancements in defense systems.
Small Business Impact
The contract was awarded to Kongsberg Defence & Aerospace AS, a large business. There is no indication of small business subcontracting requirements or participation in this specific award notice.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Oversight would involve contract management, performance monitoring, and ensuring compliance with terms and conditions.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Specialized nature of parts and service.
- Potential for sole-source follow-on orders if not managed.
- Reliance on specific contractor's expertise.
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 $79.9 million to KONGSBERG DEFENCE & AEROSPACE AS. ORDER FOR SYSTEMS, SPARE PARTS AND FIELD SERVICE TECHNICIAN SUPPORT.
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 $79.9 million.
What is the period of performance?
Start: 2023-09-22. End: 2026-07-30.
What is the specific nature of the 'systems' being procured and their criticality to Army operations?
The specific 'systems' are not detailed in this award notice, but given the contractor and the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' NAICS code, they likely relate to weapon systems, ammunition handling, or related support infrastructure. Their criticality is assumed high due to the Department of Defense awarding a significant contract for their maintenance and parts.
How does the 'full and open competition' process ensure the best possible price for these specialized defense components and services?
Full and open competition allows any responsible source to submit an offer, fostering a competitive environment. The agency evaluates offers based on pre-determined criteria, aiming to select the one that provides the best value, which includes price, technical capability, and past performance. This process is designed to prevent inflated pricing often seen in less competitive scenarios.
What are the potential risks associated with a long-term contract (1042 days) for spare parts and field service, and how are they mitigated?
Risks include potential price increases over time, obsolescence of parts, and contractor performance issues. Mitigation strategies typically involve contract clauses for price adjustments, performance metrics, regular reviews, and contingency planning for alternative suppliers or support if performance falters. The firm fixed price nature helps mitigate cost escalation risk.
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: $79,856,298
Exercised Options: $79,856,298
Current Obligation: $79,856,298
Actual Outlays: $15,694,202
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: 2023-09-22
Current End Date: 2026-07-30
Potential End Date: 2026-07-30 12:07:00
Last Modified: 2025-01-16
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