In Recommendation No. 54 to the Storting, the Government asks the Storting (Norway's parliament) for authorisation to sign a contract with KONGSBERG for the Naval Strike Missile (NSM) transition phase. To save time and reduce risk, ever since the beginning, the plan has been for an overlap between the NSM's development phase and production phase. This overlap is referred to as the transition phase. It is also, among other things, related to the Armed Forces' commitments to the producer of Norway's new Nansen class frigates with a view to scheduling the NSM's phase-in on the vessels.
The contract for the transition phase is valued at appr. MNOK 200. Full implementation of the production phase will be initiated only upon formal completion of the development phase and be based on a decision by the Storting at a later date. The development phase is scheduled for completion in late 2005.