Kongsberg Defence & Aerospace will deliver Naval Strike Missiles to the U.S. Navy under a potential $1.1 billion firm-fixed-fixed-price contract.
The award is valued at $960.77 million but will increase to the billion-dollar amount if the Navy exercises the contract’s options, the Department of Defense said Tuesday. Kongsberg will perform work in Norway, France, the Netherlands, Germany, the United States and the United Kingdom through May 2031.
The company developed the advanced anti-ship missile system for the Royal Norwegian Navy, which uses the NSM as the main weapon for its frigates and coastal corvettes. Besides the U.S. Navy and U.S. Marine Corps, other international defense forces have adopted the NSM for its operational performance and resilience against enemy defense systems, including Poland, Germany, Latvia and Australia.
Kongsberg said the missiles will be installed on the U.S. Navy’s littoral combat ships and Constellation-class frigates under the latest contract, supporting its Over-the-Horizon Weapons System program. Kongsberg will also provide the NSM to the Navy Marine Expeditionary Ship Interdiction System project.
increasing Demand for NSM
Geir Haoy, Kongsberg’s president and CEO, noted the award marks a milestone as the company’s largest-ever missile contract.
“We are pleased the United States has selected Kongsberg as an industry partner and look forward to continued cooperation to support U.S. defense capabilities and create value for important stakeholders in Norway and the U.S.,” he said.
The contract follows the company’s announcement of new missile factories in the U.S. and Australia to meet increasing demand for NSM and Joint Strike Missiles. According to Eirik Lie, president of Kongsberg Defence & Aerospace, the latest NSM deal with DOD exemplifies that demand from NATO and allied countries.
“The multi-year procurement contract vehicle provides Kongsberg and all our sub-suppliers stability into the entire supply chain and workforce,” he said.