DoD's $30.5M AN/SSQ-62F Sonobuoy System Contract Awarded to ERAPSCO

Contract Overview

Contract Amount: $30,539,694 ($30.5M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2016-11-03

End Date: 2018-12-24

Contract Duration: 781 days

Daily Burn Rate: $39.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-62F AND 36B (FY17)

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to ERAPSCO for work described as: AN/SSQ-62F AND 36B (FY17) Key points: 1. Contract awarded under a full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Delivery order issued under an existing contract (ERAPSCO), potentially indicating a streamlined procurement. 4. The product falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS code. 5. The contract duration of 781 days suggests a moderate-term supply requirement. 6. The award was made to ERAPSCO, a known entity in defense contracting. 7. The contract was issued by the Department of the Navy, a major defense procurement agency.

Value Assessment

Rating: fair

The total award amount of $30.5 million for the AN/SSQ-62F and 36B sonobuoy systems represents a significant investment. Without specific unit quantities or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract provides some cost certainty for the government. Benchmarking against similar sonobuoy procurements or comparable acoustic detection systems would be necessary for a more robust evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The use of full and open competition is a standard practice for significant procurements to ensure the government receives the best value.

Taxpayer Impact: A full and open competition aims to leverage market forces to secure competitive pricing, potentially saving taxpayer dollars compared to less competitive methods.

Public Impact

The primary beneficiaries are the U.S. Navy's maritime patrol and anti-submarine warfare (ASW) operations. The contract delivers essential sonobuoy systems (AN/SSQ-62F and 36B) used for detecting submarines and other underwater threats. Geographic impact is primarily within naval operating areas globally, supporting fleet readiness. Workforce implications may include jobs in manufacturing, engineering, and quality assurance within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Unit cost and detailed performance metrics are not publicly available for granular value analysis.
The specific capabilities and technological advancements of the AN/SSQ-62F and 36B systems require further context for full understanding.

Positive Signals

Awarded under a firm-fixed-price contract, transferring cost overrun risk to the contractor.
Procurement utilized a full and open competition, promoting a competitive marketplace.
The contract is a delivery order under an existing agreement, suggesting established supplier relationships and potentially efficient execution.

Sector Analysis

The defense sector, specifically the sub-sector of electronic and precision equipment manufacturing, is characterized by high technological requirements and significant government investment. The market for sonobuoys is relatively specialized, serving critical naval intelligence, surveillance, and reconnaissance (ISR) needs. Spending in this area is driven by geopolitical factors and the need for advanced anti-submarine warfare capabilities. Comparable spending benchmarks would involve other acoustic sensor systems and related naval electronic warfare equipment.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of sonobuoy systems, it is likely that the prime contractor, ERAPSCO, possesses specific capabilities. Subcontracting opportunities for small businesses may exist within ERAPSCO's supply chain, but these are not detailed in the award information. The impact on the broader small business ecosystem is likely minimal unless significant subcontracting plans are in place.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The Department of the Navy's contracting officers are responsible for ensuring compliance with contract terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare
Anti-Submarine Warfare Systems
Maritime Surveillance Technology
Defense Electronics Manufacturing
Acoustic Sensor Systems

Risk Flags

Potential supply chain dependencies
Limited public data on unit cost and performance
Specialized nature of the technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to ERAPSCO. AN/SSQ-62F AND 36B (FY17)

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 $30.5 million.

What is the period of performance?

Start: 2016-11-03. End: 2018-12-24.

What is the historical spending trend for AN/SSQ-62F and 36B sonobuoy systems by the Department of Defense?

Analyzing historical spending requires accessing detailed procurement data over multiple fiscal years. While this specific award is for approximately $30.5 million, understanding the trend involves looking at prior awards for these systems and potentially their predecessors. Factors influencing spending include fleet modernization programs, geopolitical threats, and the lifecycle of existing equipment. A comprehensive review would likely show fluctuations based on program needs and budget allocations, with potential increases during periods of heightened ASW focus or decreases during budget constraints. Without access to a multi-year procurement history for these specific systems, it's difficult to establish a definitive trend beyond this single award.

How does the price per unit for these sonobuoys compare to similar systems or previous procurements?

A precise per-unit cost comparison is not feasible with the provided data, as the total award amount of $30.5 million does not specify the quantity of AN/SSQ-62F and 36B sonobuoys procured. To conduct such a comparison, one would need to know the number of units delivered under this contract and benchmark this against the unit prices of similar sonobuoy systems acquired by the Navy or other military branches, as well as against historical data for the same or comparable systems. Factors like technological sophistication, manufacturing complexity, and order volume significantly influence per-unit pricing, making direct comparisons challenging without detailed specifications and quantities.

What are the key performance metrics and reliability data for the AN/SSQ-62F and 36B sonobuoy systems?

Detailed performance metrics and reliability data for the AN/SSQ-62F and 36B sonobuoy systems are typically considered sensitive military information and are not publicly disclosed in contract award notices. These metrics would likely include factors such as detection range, accuracy, acoustic signature analysis capabilities, operational lifespan, environmental resilience, and Mean Time Between Failures (MTBF). Such data is crucial for assessing the system's effectiveness in its intended anti-submarine warfare role and would be evaluated during the source selection process and throughout the contract's performance period by the government's technical representatives.

What is ERAPSCO's track record with the Department of the Navy and similar defense contracts?

ERAPSCO (Eagan, Ramage & Associates, Inc.) has a significant track record of supplying sonobuoys and related systems to the U.S. Navy and other defense agencies. They are a known prime contractor in this specialized area. Historical data indicates numerous awards for various sonobuoy types, including previous generations and variants of the AN/SSQ series. Their experience suggests a deep understanding of the technical requirements, manufacturing processes, and quality standards necessary for these critical naval components. This established relationship and demonstrated capability likely contributed to their selection for this delivery order.

What are the potential risks associated with the supply chain or manufacturing of these sonobuoys?

Potential risks in the supply chain and manufacturing of specialized defense equipment like sonobuoys can include reliance on a limited number of specialized component suppliers, potential for obsolescence of certain technologies, geopolitical disruptions affecting raw material availability, and the inherent complexities of high-precision manufacturing. For ERAPSCO, risks might also involve ensuring consistent quality control across production runs and managing lead times for critical components. The firm-fixed-price contract structure shifts some financial risk to the contractor, but performance failures or significant delays could still impact naval readiness and necessitate government intervention or re-procurement efforts.

How does this contract contribute to the Navy's overall anti-submarine warfare (ASW) capabilities?

This contract directly supports the Navy's anti-submarine warfare (ASW) capabilities by providing essential AN/SSQ-62F and 36B sonobuoy systems. Sonobuoys are expendable devices deployed from aircraft or ships that detect underwater acoustic signatures, primarily from submarines. The AN/SSQ-62F is a advanced active/passive sonobuoy, while the 36B is a related component, likely contributing to the overall detection and localization network. Ensuring a steady supply of these systems is critical for maintaining the Navy's persistent surveillance and engagement capabilities in maritime theaters, which is a cornerstone of national security.

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: $30,539,694

Exercised Options: $30,539,694

Current Obligation: $30,539,694

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $9,912,780

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