DoD Awards $13.7M for Systems and Spares to Kongsberg Defence & Aerospace AS
Contract Overview
Contract Amount: $13,679,289 ($13.7M)
Contractor: Kongsberg Defence & Aerospace AS
Awarding Agency: Department of Defense
Start Date: 2025-09-22
End Date: 2028-01-31
Contract Duration: 861 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER TO PROCURE SYSTEMS AND SPARES FOR SEVERAL CUSTOMERS.
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $13.7 million to KONGSBERG DEFENCE & AEROSPACE AS for work described as: DELIVERY ORDER TO PROCURE SYSTEMS AND SPARES FOR SEVERAL CUSTOMERS. Key points: 1. Contract awarded for critical systems and spare parts, indicating ongoing operational needs. 2. Kongsberg Defence & Aerospace AS, a significant player, secured this order. 3. The contract value is substantial, requiring careful monitoring for efficiency. 4. Spending falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector.
Value Assessment
Rating: good
The $13.7M award for systems and spares appears reasonable given the nature of defense procurement. Benchmarking against similar complex systems and long-lead time spares 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, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense equipment.
Public Impact
Ensures continued operational readiness for multiple military customers by providing essential systems and spares. Supports a key defense contractor, potentially impacting supply chain stability for critical components. The long performance period (2025-2028) suggests a sustained need for these items.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long performance period could lead to scope creep or unforeseen cost increases.
- Reliance on a single awardee for critical spares might pose supply chain risks.
- Firm Fixed Price contract offers cost certainty but limits flexibility for changes.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Clear end dates provide defined project timelines.
- Procurement of essential systems and spares supports military readiness.
Sector Analysis
This contract falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector, a critical area for defense capabilities. Spending benchmarks for similar complex systems and spare parts procurement within DoD are essential for a thorough value assessment.
Small Business Impact
While the prime contractor is Kongsberg Defence & Aerospace AS, the data does not specify the extent of small business participation in the subcontracting plan. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The Department of the Army's oversight of this delivery order is crucial, especially given the multi-year performance period. Ensuring adherence to contract terms and monitoring performance will be key to accountability.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to long performance period.
- Supply chain vulnerability if contractor faces issues.
- Lack of detailed breakdown for unit cost analysis.
- Limited visibility into small business subcontracting.
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 $13.7 million to KONGSBERG DEFENCE & AEROSPACE AS. DELIVERY ORDER TO PROCURE SYSTEMS AND SPARES FOR SEVERAL CUSTOMERS.
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 $13.7 million.
What is the period of performance?
Start: 2025-09-22. End: 2028-01-31.
What is the specific breakdown of systems versus spares in this order, and how does the unit cost compare to industry benchmarks for similar items?
The provided data does not detail the specific allocation between systems and spares. A comprehensive analysis would require a breakdown of the line items to compare unit costs against established industry benchmarks for comparable defense systems and their associated spare parts. This would help ascertain if the pricing reflects fair and reasonable value.
What are the potential risks associated with relying on a single awardee for critical systems and spares over a multi-year period?
Relying on a single awardee for critical systems and spares over several years presents risks such as potential supply chain disruptions if the contractor faces production issues or financial instability. It could also limit the government's leverage in future negotiations or price adjustments. Contingency planning and robust contract management are essential to mitigate these risks.
How effectively does this procurement contribute to the overall operational readiness and long-term strategic goals of the Department of the Army?
This procurement directly contributes to operational readiness by ensuring the availability of necessary systems and spares. Its effectiveness in meeting long-term strategic goals depends on the criticality of these specific systems to future military operations and whether they align with evolving defense strategies. A review of the systems' technological relevance and planned obsolescence is needed.
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: $13,679,289
Exercised Options: $13,679,289
Current Obligation: $13,679,289
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: 2025-09-22
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 12:01:00
Last Modified: 2025-09-22
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