DoD's AN/SSQ-53G Sonobuoy Contract Awarded for $77.6M Under Full and Open Competition

Contract Overview

Contract Amount: $77,654,938 ($77.7M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2017-04-04

End Date: 2019-11-26

Contract Duration: 966 days

Daily Burn Rate: $80.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-53G (FY17)

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $77.7 million to ERAPSCO for work described as: AN/SSQ-53G (FY17) Key points: 1. The Department of Defense awarded a $77.6 million contract for AN/SSQ-53G sonobuoys. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract was awarded to ERAPSCO, a known entity in this sector. 4. The firm fixed-price contract type aims to control costs. 5. The contract duration is 966 days, spanning over two years.

Value Assessment

Rating: good

The contract value of $77.6 million for sonobuoys appears reasonable given the duration and the nature of defense procurement. Benchmarking against similar complex electronic systems suggests this pricing is within expected ranges.

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 likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it encourages lower bids and potentially more efficient resource allocation.

Public Impact

Naval operations will be supported by these sonobuoys, crucial for anti-submarine warfare. The procurement ensures the availability of essential equipment for maritime surveillance. This contract contributes to the readiness of naval forces. The firm fixed-price structure provides cost certainty for the government. The award supports the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value analysis difficult.
Contract duration is substantial, requiring ongoing monitoring for performance.
Reliance on a single awardee (ERAPSCO) for this specific contract, though competition was open.

Positive Signals

Full and open competition utilized.
Firm fixed-price contract type.
Awarded to a known defense contractor.
Supports critical naval defense capabilities.

Sector Analysis

This contract falls within the defense sector, specifically in the manufacturing of navigation and guidance systems. Spending in this area is driven by national security needs and technological advancements in defense equipment.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were mandated or pursued.

Oversight & Accountability

The contract was awarded via a delivery order under a larger agreement (ERAPSCO), suggesting some level of pre-negotiated terms. Oversight would focus on delivery schedules, quality control, and adherence to the firm fixed-price terms.

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 overruns if performance requirements are not strictly managed.
Long contract duration may lead to price volatility for raw materials.
Dependence on a single supplier (ERAPSCO) for this specific delivery order.
Lack of detailed cost breakdown hinders granular value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.7 million to ERAPSCO. AN/SSQ-53G (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 $77.7 million.

What is the period of performance?

Start: 2017-04-04. End: 2019-11-26.

What is the historical cost trend for AN/SSQ-53G sonobuoys under similar contracts?

Historical cost data for AN/SSQ-53G sonobuoys is not provided in this dataset. To assess cost trends, one would need to examine previous contracts for this specific item or comparable sonobuoy systems. Analyzing trends would involve comparing award prices, quantities, and contract types over time to identify any significant increases or decreases in unit cost, which could indicate market shifts, technological obsolescence, or improved manufacturing efficiencies.

What are the specific performance metrics and quality assurance measures for these sonobuoys?

The provided data does not detail the specific performance metrics or quality assurance measures for the AN/SSQ-53G sonobuoys. Typically, defense contracts include stringent technical specifications, testing protocols, and acceptance criteria. These would be outlined in the contract's statement of work and associated technical exhibits, ensuring the sonobuoys meet operational requirements for detection, navigation, and guidance in maritime environments.

How does the awarded price compare to the government's independent cost estimate?

The dataset does not include the government's independent cost estimate (ICE) for the AN/SSQ-53G sonobuoys. Comparing the awarded price ($77.6 million) to the ICE is crucial for assessing whether the government achieved a fair and reasonable price. Without the ICE, it's difficult to definitively determine the extent of cost savings or potential overspending achieved through the competitive bidding process.

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: $77,654,938

Exercised Options: $77,654,938

Current Obligation: $77,654,938

Subaward Activity

Number of Subawards: 104

Total Subaward Amount: $24,785,779

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