DoD spent $53.8M on AN/SSQ-53F SONOBUOYs, a critical component for naval anti-submarine warfare

Contract Overview

Contract Amount: $53,804,922 ($53.8M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2010-03-26

End Date: 2012-09-28

Contract Duration: 917 days

Daily Burn Rate: $58.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-53F SONOBUOY

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $53.8 million to ERAPSCO for work described as: AN/SSQ-53F SONOBUOY Key points: 1. The contract value of $53.8 million for sonobuoys represents a significant investment in naval defense capabilities. 2. Competition dynamics for this contract are noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a controlled but competitive bidding process. 3. The contract was awarded to ERAPSCO, indicating a specific supplier relationship for this critical equipment. 4. The duration of the contract (917 days) suggests a sustained need for these sonobuoys. 5. The 'IN' (Indiana) state code for the contractor may indicate a concentration of this specific defense manufacturing in that region. 6. The absence of small business set-asides (ss: false, sb: false) means this large contract did not directly target small business participation.

Value Assessment

Rating: good

Benchmarking the value of $53.8 million for AN/SSQ-53F SONOBUOYs requires specific knowledge of the unit cost and performance characteristics of this particular sonobuoy model. Without direct comparisons to similar contracts for the same or equivalent sonobuoys, a precise value-for-money assessment is challenging. However, the firm fixed-price contract type generally offers cost certainty to the government, mitigating risk of cost overruns. The existence of competition, even with exclusions, suggests a degree of market discipline on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded from the bidding process. The exact reasons for these exclusions are not detailed in the provided data. The number of bidders is listed as one (no: 1), which is a critical point. A single bidder in a competition, even if initially open, raises concerns about the breadth of competition and its potential impact on price discovery and overall value.

Taxpayer Impact: A single bidder, even in a process that started as open, limits the government's ability to secure the best possible price through robust competition. This can potentially lead to higher costs for taxpayers compared to a scenario with multiple competitive bids.

Public Impact

The primary beneficiaries are the U.S. Navy, which receives critical equipment for anti-submarine warfare (ASW) operations. The service delivered is the supply of AN/SSQ-53F SONOBUOYs, essential for detecting and tracking submarines. The geographic impact is primarily within naval operations theaters globally, though manufacturing may be concentrated in Indiana. Workforce implications include jobs in defense manufacturing, potentially in Indiana, related to the production of these specialized electronic components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bidder) raises concerns about potential price inflation and reduced innovation.
The exclusion of sources, even if justified, warrants scrutiny to ensure fairness and maximize competitive opportunities.
Reliance on a single contractor for a critical defense component could pose supply chain risks.

Positive Signals

The contract is Firm Fixed Price, providing cost certainty and mitigating the risk of cost overruns for the government.
The 'FULL AND OPEN COMPETITION' designation, despite exclusions, suggests an attempt to leverage market forces.
The sonobuoy model (AN/SSQ-53F) is a standard and likely well-understood piece of naval equipment, implying mature production processes.

Sector Analysis

The defense sector, specifically naval systems manufacturing, is characterized by high technological barriers to entry and significant government procurement. Sonobuoys are a niche but vital component of anti-submarine warfare (ASW) systems. The market for such specialized defense electronics is often dominated by a few key players due to stringent quality, performance, and security requirements. Spending benchmarks are difficult to establish without comparative data on similar sonobuoy systems or contracts, but $53.8 million represents a substantial procurement for this specific item.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, ERAPSCO, is likely a larger entity given the contract value. There is no direct information on subcontracting plans or performance related to small businesses within this specific award. The lack of small business set-asides means that opportunities for small businesses to directly participate in fulfilling this contract were not mandated.

Oversight & Accountability

Oversight for this Department of Defense contract would typically fall under the purview of the Department of the Navy's contracting and program management offices. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Accountability measures are inherent in the firm fixed-price structure, which holds the contractor responsible for delivering the specified goods within the agreed price.

Related Government Programs

Naval Anti-Submarine Warfare Systems
Acoustic Detection Systems
Naval Aviation Support Equipment
Defense Electronics Manufacturing
Search and Detection Systems

Risk Flags

Limited Competition (1 Bidder)
Exclusion of Sources
Potential Supply Chain Risk (Sole Source)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.8 million to ERAPSCO. AN/SSQ-53F SONOBUOY

Who is the contractor on this award?

The obligated recipient is ERAPSCO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $53.8 million.

What is the period of performance?

Start: 2010-03-26. End: 2012-09-28.

What is the historical spending trend for AN/SSQ-53F SONOBUOYs by the Department of Defense?

Analyzing historical spending for the AN/SSQ-53F SONOBUOY requires accessing comprehensive contract data over multiple fiscal years. The provided data point represents a single award from 2010-2012. To understand trends, one would need to query databases like FPDS or USAspending for all contracts associated with the AN/SSQ-53F part number or its NSN (if available) across different agencies and years. This would reveal if spending has increased, decreased, or remained stable, and identify the primary procuring entities (e.g., Navy, Air Force). Such an analysis is crucial for forecasting future needs and budgeting.

How does the unit cost of the AN/SSQ-53F SONOBUOY in this contract compare to market rates or other government contracts?

Determining the unit cost requires dividing the total contract value ($53.8M) by the number of units procured. However, the number of units is not provided in the data. Assuming a typical quantity for such a contract, the unit cost could be estimated. A comparison to market rates is difficult without access to commercial pricing for equivalent sonobuoys, which are specialized military items. Benchmarking against other government contracts for the same or similar sonobuoys would be the most effective method. If this contract represents the sole source or a limited competition, its pricing might be higher than if it were procured under broader, more competitive circumstances. Further analysis would involve identifying comparable contracts and their respective unit prices.

What are the specific reasons for the exclusion of sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The provided data snippet does not specify the reasons for excluding certain sources in this contract. Typically, such exclusions are based on factors like proprietary technology, existing patents, unique capabilities, or previous performance issues. In some cases, it might relate to specific security clearances or certifications required for a particular defense system. The contracting agency (Department of the Navy) would have documented these justifications in the contract file. Understanding these reasons is important for assessing whether the exclusion unduly limited competition and potentially impacted the final price or availability of the sonobuoys.

What is ERAPSCO's track record as a contractor for the Department of Defense, particularly for sonobuoy systems?

ERAPSCO (E.R.A.P.S. Co.) is a known supplier of sonobuoys and related systems to the U.S. Navy. Historical contract data would reveal the extent of their involvement, the types of sonobuoys they have supplied, and their performance history. Examining past awards, contract values, and any reported issues (e.g., contract disputes, performance deficiencies) would provide insight into their reliability and capabilities. A positive track record with consistent delivery and quality would support the current award, while a history of problems might raise concerns about future performance and value.

What are the performance specifications and operational effectiveness of the AN/SSQ-53F SONOBUOY?

The AN/SSQ-53F is a passive acoustic sonobuoy used for detecting and classifying submarines. It is part of the standard equipment for naval anti-submarine warfare (ASW) operations. Its effectiveness is measured by factors such as detection range, accuracy, resistance to countermeasures, and operational lifespan. As a widely deployed system, it is generally considered a reliable component of the ASW sensor suite. However, specific performance metrics and comparisons to newer or alternative sonobuoy technologies would be necessary to fully assess its current operational effectiveness and justify continued procurement at this scale.

Are there any ongoing or past quality issues or performance deficiencies reported for the AN/SSQ-53F SONOBUOY or its supplier, ERAPSCO?

Assessing quality issues or performance deficiencies requires reviewing contract performance reports, quality assurance records, and any official complaints or investigations related to the AN/SSQ-53F SONOBUOY or ERAPSCO. Publicly available data might include information from sources like the Government Accountability Office (GAO) reports, Inspector General audits, or contract modification histories that indicate problems. Without specific data on reported issues, it's assumed the system and supplier have met contractual requirements. However, a thorough risk assessment would necessitate a deep dive into performance databases and agency records.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042109R0120

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4578 EAST PARK 30 DR, COLUMBIA CITY, IN, 03

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,804,922

Exercised Options: $53,804,922

Current Obligation: $53,804,922

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042110D0011

IDV Type: IDC

Timeline