The contract is valued at $45.5 million, although the total value could rise to $56.4 million if contract options are exercised. At the time of signing, the initial $45.5 million production amount was activated under the agreement.
The entire funding for the initial contract value is being provided by Latvia. The involvement of the U.S. Department of War results from the use of the Foreign Military Sales (FMS) procurement procedure.
According to the contract terms, deliveries are scheduled to be completed by July 2030. If additional options are exercised, the final delivery timeline could be extended until November 2031.
The Department of War stated that the majority of the work will take place in Norway. Approximately 63 percent of the programme’s activities will be carried out there, with additional components sourced from Italy, Finland, Denmark and the United Kingdom.
The procurement follows a government-to-government Letter of Offer and Acceptance agreement between Latvia and the United States signed in December 2023. According to Latvian authorities, the total value of the broader programme is expected to reach approximately $105 million.
Most of the programme funding will be supported through United States Foreign Military Financing assistance. Around 70 percent of the total cost is expected to be covered through these military aid funds.
For this reason, the contract may represent only the portion of the programme that Latvia is directly financing. Additional contracts linked to U.S. assistance funding may therefore follow as the programme progresses.
Latvia is one of several Central European countries that have selected a coastal defence system based on Kongsberg’s technology and the NSM missile. Other European operators include Poland, Romania, Denmark and Bulgaria, reflecting the growing adoption of the system for maritime defence in the region.
