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US Awards KONGSBERG Naval Strike Missile Contract

KONGSBERG Naval Strike Missile [© KONGSBERG]

KONGSBERG has been awarded a contract to deliver Naval Strike Missiles to the US Navy and Marine Corps valued up to NOK 12 billion.

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Press Release, Kongsberg, 12 November 2024: Kongsberg Defence & Aerospace (KONGSBERG) has signed a multi-year procurement contract with the US Navy for the delivery of Naval Strike Missile (NSM) missiles to the Navy and Fleet Marine Force over a five-year period. The fixed price contract awarded today is valued at NOK 10 billion. This contract includes options which, if exercised, would bring the cumulative value of this contract to about NOK 12 billion.

“This contract is the largest missile contract in KONGSBERG’s history and an important milestone for us. We are pleased the United States has selected KONGSBERG as an industry partner and look forward to continued cooperation to support US defence capabilities and create value for important stakeholders in Norway and the US,” said Geir Håøy, President and CEO of KONGSBERG.

NSM is the centrepiece of the Navy’s Over-the-Horizon Weapons System (OTH-WS) Program, and is being installed on Littoral Combat Ships and CONSTELLATION-class Frigates. KONGSBERG is also delivering NSM to the US Marine Corps as a key component of its NMESIS (Navy Marine Expeditionary Ship Interdiction System) Program.

“This contract is an example of the strong demand we see for our strike missiles across NATO and allied nations, which is why we this year have opened a new missile factory in Norway and announced two facilities in Australia and the US. The multi-year procurement contract vehicle provides KONGSBERG and all our sub-suppliers stability into the entire supply chain and workforce,” said Eirik Lie, President of Kongsberg Defence & Aerospace.

KONGSBERG recently announced the building of a new missile factory in James City County, Virginia, in response to increasing demand for JSM and NSM.

About Naval Strike Missile: The NSM is an anti-ship missile with superior operational performance and high survivability against all enemy defense systems. The missile was developed by KONGSBERG and first deployed in 2012 by the Norwegian Navy.

NSM is the main weapon for the Norwegian Navy’s frigates and coastal corvettes, and has been selected by the US Navy, US Marine Corps, Poland, Romania, Canada, Germany, Australia, Malaysia, Spain, UK, The Netherlands, Belgium, and Latvia.

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NMESIS launcher on ROGUE Fires JLTV [USMC: Maj. Nick Mannweiler]

Contract Notice, Washington DC, 12 November 2024: Kongsberg Defence and Aerospace, Kongsberg, Norway, is being awarded a $960,776,576 firm-fixed-fixed-price, multi-year contract (N00024-25-C-5434) for Over the Horizon–Weapons System encanistered missiles, also known as the Naval Strike Missile.

This contract includes options which, if exercised, would bring the cumulative value of this contract to $1,140,776,576. Work will be performed in Kongsberg, Norway (56%); Toulouse, France (13%); ‘t Harde, Netherlands (8%); Schrobenhausen, Germany (7%); Raufoss, Norway (1%); Arendal, Norway (1%); Northridge, California (1%); Gloucestershire, United Kingdom (1%); Chandler, Arizona (1%); Camberley, United Kingdom (1%); and various locations all less than 1% (10%), and is expected to be completed by May 2031.

Fiscal 2024 procurement (Marine Corps) funding in the amount of $206,718,816 (89%); and fiscal 2024 weapons procurement (Navy) funding in the amount of $25,587,544 (11%), will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 US Code 3204(a)(1) (only one responsible source and no other supplies or services will satisfy agency requirements). Naval Sea Systems Command, Washington, DC, is the contracting activity.

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