DoD's AN/SSQ-53G Sonobuoy Contract: $101M for Naval Systems, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $101,129,600 ($101.1M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2016-03-30

End Date: 2019-04-03

Contract Duration: 1,099 days

Daily Burn Rate: $92.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-53G (FY16)

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $101.1 million to ERAPSCO for work described as: AN/SSQ-53G (FY16) Key points: 1. The contract value is $101.1 million, awarded in FY16. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The award was a delivery order under a larger contract. 4. The sector is IT/Defense, specifically navigation and guidance systems.

Value Assessment

Rating: good

The contract is a firm fixed price delivery order, which helps control costs. Benchmarking against similar sonobuoy procurements would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best value through market forces.

Public Impact

Naval readiness is supported by the procurement of essential sonobuoy systems. The contract ensures the availability of critical components for maritime surveillance. Technological advancements in sonar systems are likely facilitated by ongoing procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data.
Contract duration is substantial (1099 days).

Positive Signals

Full and open competition.
Firm fixed price contract type.

Sector Analysis

This contract falls within the Defense sector, specifically for naval systems and instruments. Spending benchmarks for similar sonar and navigation equipment would be relevant for a deeper analysis.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this specific delivery order. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Standard DoD oversight mechanisms would apply to ensure contract performance and financial accountability.

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

Potential for cost creep if not managed tightly.
Risk of technological obsolescence.
Dependence on a single supplier if ERAPSCO is the sole manufacturer.
Limited visibility into specific per-unit costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.1 million to ERAPSCO. AN/SSQ-53G (FY16)

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 $101.1 million.

What is the period of performance?

Start: 2016-03-30. End: 2019-04-03.

What is the historical cost trend for this specific sonobuoy model under previous contracts?

Analyzing historical cost trends for the AN/SSQ-53G would reveal if pricing has increased or decreased over time. This context is crucial for assessing current value, especially considering inflation and potential technological obsolescence. Without this data, it's difficult to definitively state if the $101 million represents a fair price compared to past procurements.

What are the specific performance requirements and how do they compare to market alternatives?

Understanding the AN/SSQ-53G's technical specifications and performance metrics is key to evaluating its value proposition. If the system offers superior capabilities compared to commercially available alternatives or other government-procured systems, the price may be justified. Conversely, if its performance is comparable to less expensive options, the current pricing could be questionable.

What is the potential for obsolescence or the need for upgrades given the contract's end date?

The contract ends in April 2019. Assessing the potential for obsolescence requires understanding the lifecycle of sonobuoy technology. If newer, more advanced systems are emerging, the investment in the AN/SSQ-53G might have limited long-term effectiveness, impacting the overall value and requiring future reinvestment.

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

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: $101,129,600

Exercised Options: $101,129,600

Current Obligation: $101,129,600

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