DoD's Navy Awards $59.7M for AN/SSQ-53F Sonobuoys to ERAPSCO Under Full and Open Competition

Contract Overview

Contract Amount: $59,753,751 ($59.8M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2015-03-13

End Date: 2017-03-13

Contract Duration: 731 days

Daily Burn Rate: $81.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-53F FOR FMS : BRAZIL

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $59.8 million to ERAPSCO for work described as: AN/SSQ-53F FOR FMS : BRAZIL Key points: 1. The contract is for AN/SSQ-53F sonobuoys, a critical component for naval anti-submarine warfare. 2. ERAPSCO, the sole awardee, has a history with this product line. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The total value is $59.7 million over two years.

Value Assessment

Rating: good

The contract value of $59.7 million for two years of sonobuoy supply appears reasonable given the specialized nature of the equipment. Benchmarking against similar defense procurements for advanced acoustic sensors would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This method generally promotes price discovery and competitive pricing, although the specific number of bids received is not detailed.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for essential defense equipment.

Public Impact

Ensures continued availability of critical anti-submarine warfare technology for naval operations. Supports U.S. allies through Foreign Military Sales (FMS), enhancing interoperability and regional security. The procurement contributes to the readiness of naval forces by supplying essential sensor equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole awardee to ERAPSCO may warrant further review of competitive landscape.
Foreign Military Sales (FMS) component adds complexity to oversight and end-use monitoring.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type helps control costs.
Procurement supports critical naval defense capabilities.

Sector Analysis

This procurement falls within the defense sector, specifically focusing on electronic and navigational equipment manufacturing. Spending benchmarks for similar specialized defense systems are typically high due to advanced technology and stringent quality requirements.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The use of a delivery order under an existing contract structure suggests a framework for monitoring performance and delivery.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole awardee concentration risk.
Potential for supply chain disruptions.
Complexity of managing Foreign Military Sales.
Risk of technological obsolescence in advanced systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.8 million to ERAPSCO. AN/SSQ-53F FOR FMS : BRAZIL

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 $59.8 million.

What is the period of performance?

Start: 2015-03-13. End: 2017-03-13.

What is the specific performance difference between the AN/SSQ-53F and its predecessor or successor models, and how does this justify the contract value?

The AN/SSQ-53F represents an advancement in sonobuoy technology, likely offering improved acoustic detection ranges, signal processing capabilities, and resistance to countermeasures compared to older models. These enhancements are crucial for maintaining situational awareness in complex underwater environments and are reflected in the specialized manufacturing and development costs, justifying the contract's value.

What are the potential risks associated with relying on a single awardee, ERAPSCO, for this critical defense component, especially for Foreign Military Sales?

Relying on a single awardee like ERAPSCO introduces supply chain risks, including potential production delays, price increases, or quality control issues that could impact both domestic and allied forces. For FMS, this concentration could also complicate end-use monitoring and potentially create dependencies for partner nations.

How effectively does the firm fixed price contract type mitigate cost overruns for this specialized defense system, considering potential technological obsolescence or unforeseen manufacturing challen

The firm fixed price contract type is designed to transfer most of the cost risk to the contractor, ERAPSCO. This incentivizes efficient production and cost management. However, for highly specialized systems like sonobuoys, unforeseen manufacturing challenges or rapid technological advancements could still pose risks, potentially leading to contract modifications or future procurements at higher costs if the initial price did not adequately account for these factors.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042113R0070

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4868 EAST PARK 30 DR, COLUMBIA CITY, IN, 46725

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $59,753,751

Exercised Options: $59,753,751

Current Obligation: $59,753,751

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $7,833,392

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042114D0025

IDV Type: IDC

Timeline