Erapsco, a joint venture between Sparton Corporation and Ultra Electronics Holdings (ULE), has received an $87 million contract from the United States Navy for manufacturing sonobuoys.
Sonobuoys are described as air-launched expendable, electro-mechanical sensors designed to relay underwater sounds associated with ships and submarines to remote processors. They are used for search tactics and communications during times of peace and combat missions.
Details of the contract are unspecific – it is an indefinite delivery and indefinite quantity (IDIQ). Erapsco will distribute the production contracts pretty evenly, one to Ultra Electronics USSI worth $47 million and the other to Sparton DeLeon Springs worth $40 million.
Erapsco also secured subcontracts worth $57 million back in February to build sonobuoys. For that contract, $32.6 million went to Sparton DeLeon Springs and the other $24.4 million went to Ultra Electronics.
Officials at both companies were pleased with the deal, and thanked the Navy for its continued belief in their respective companies.
"I am pleased that we have secured this important contract that will continue to provide critical sensor capabilities to the US Navy,” said Ultra Electronics Chief Executive Rakesh Sharma. “This contract is a reflection of the increased focus on anti-submarine warfare and 'pivot to the Pacific' spoken about by the US Navy."
Sparton President and CEO Cary B. Wood said, "We are firmly committed to the development of innovative technology and to providing the US Navy with the highest quality products that help further its mission."Sonobuoys that will be procured by PMA-264 to support training and operation programs include:
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