Navy awards $11.6M for sonobuoys, with 2 orders placed under a larger IDIQ contract

Contract Overview

Contract Amount: $11,633,450 ($11.6M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2021-11-30

End Date: 2026-03-31

Contract Duration: 1,582 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPTION YEAR 1 PROCUREMENT OF AN/SSQ-125A SONOBUOYS

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to ERAPSCO for work described as: OPTION YEAR 1 PROCUREMENT OF AN/SSQ-125A SONOBUOYS Key points: 1. The contract leverages an existing IDIQ vehicle, suggesting potential for cost savings through pre-negotiated terms. 2. Competition dynamics for the IDIQ contract are not detailed, but the delivery order itself was not competed. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery to Indiana indicates a specific operational or logistical focus for these sonobuoys. 5. The duration of the delivery order (over 1500 days) suggests a long-term need for these critical components.

Value Assessment

Rating: good

The total value of this delivery order is $11.6 million. Without knowing the specific quantity of sonobuoys procured, a direct per-unit cost comparison is difficult. However, the use of an existing IDIQ contract vehicle implies that pricing has likely been benchmarked against previous agreements and market rates. The firm-fixed-price nature of the award provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This specific delivery order was not competed. It was awarded under a previously established Indefinite Delivery/Indefinite Quantity (IDIQ) contract, ERAPSCO. The competition level for the parent IDIQ contract is not specified in the provided data, but the award of a delivery order under it suggests that the initial competition for the IDIQ was intended to establish a pool of qualified vendors.

Taxpayer Impact: While this specific order was not competed, the existence of a pre-competed IDIQ contract aims to streamline procurement and potentially achieve better pricing over time compared to ad-hoc sole-source awards.

Public Impact

Naval forces operating in areas requiring anti-submarine warfare capabilities will benefit from the supply of these sonobuoys. The services delivered include the provision of AN/SSQ-125A sonobuoys, essential for underwater surveillance and detection. The geographic impact is centered on Indiana, likely related to a specific naval air station or logistics command. The contract supports the defense industrial base, particularly manufacturers of sonar and detection equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific quantity data makes it difficult to assess per-unit value for money.
Competition details for the parent IDIQ contract are not provided, limiting insight into overall market dynamics.
The specific capabilities and technological advancements of the AN/SSQ-125A sonobuoys are not detailed.

Positive Signals

Awarded under a firm-fixed-price contract, providing cost certainty.
Leverages an existing IDIQ contract, potentially indicating streamlined procurement and pre-negotiated pricing.
The contractor, ERAPSCO, is an established entity in defense contracting.

Sector Analysis

Sonobuoys fall under the broader defense electronics and systems manufacturing sector. This sector is characterized by high technological barriers to entry, significant R&D investment, and long product lifecycles. The market for naval acoustic systems is dominated by a few key players, often with strong ties to government contracts. Spending benchmarks for similar naval systems can vary widely based on technological sophistication and quantity, but this contract appears to be a standard procurement for a critical component.

Small Business Impact

The provided data indicates that small business participation (sb) is false for this contract. There is no indication of small business set-asides or subcontracting requirements associated with this specific delivery order. This suggests that the prime contractor, ERAPSCO, is likely a large business, and the procurement did not prioritize small business engagement for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting command and potentially the Defense Contract Management Agency (DCMA). The firm-fixed-price contract type provides a degree of accountability by fixing the cost. Transparency is facilitated by the existence of contract award databases, though detailed performance metrics are often not publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sonar Systems
Anti-Submarine Warfare Equipment
Defense Electronics Manufacturing
Naval Aviation Support Equipment
IDIQ Contract Vehicles

Risk Flags

Lack of specific quantity data hinders detailed value analysis.
Limited competition details for the parent IDIQ.
No small business subcontracting requirements specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to ERAPSCO. OPTION YEAR 1 PROCUREMENT OF AN/SSQ-125A SONOBUOYS

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 $11.6 million.

What is the period of performance?

Start: 2021-11-30. End: 2026-03-31.

What is the specific quantity of AN/SSQ-125A sonobuoys being procured under this delivery order?

The provided data does not specify the exact quantity of AN/SSQ-125A sonobuoys being procured under this $11.6 million delivery order. The total value and the contract duration (1582 days) are given, but the unit quantity is missing. This information is crucial for a precise per-unit cost analysis and for understanding the scale of the procurement relative to the Navy's overall needs for this equipment.

What was the competitive landscape for the parent ERAPSCO IDIQ contract?

The provided data indicates that this delivery order was placed under an existing ERAPSCO IDIQ contract. However, the specific details regarding the competition for the parent IDIQ contract, such as the number of bidders, the evaluation criteria, and the awardee(s), are not included. Understanding the competition for the IDIQ is important as it sets the stage for the pricing and availability of services under subsequent delivery orders.

How does the unit cost of the AN/SSQ-125A sonobuoys compare to market rates or similar government procurements?

Without the specific quantity of sonobuoys procured, a direct unit cost comparison is not possible. The total award is $11.6 million over approximately 4.3 years. If we were to assume a hypothetical quantity, we could derive a unit cost. However, benchmarking against market rates or similar government procurements would require access to more detailed contract data, including quantities and specific model variants, as well as current market pricing for comparable sonar equipment.

What is the track record of ERAPSCO in delivering sonobuoys or similar naval systems?

ERAPSCO (Electro-Optical Systems) is a joint venture often involved in providing sonobuoys and related systems to the U.S. Navy. As a contractor frequently awarded under IDIQ vehicles for these types of products, ERAPSCO generally has a history of fulfilling such requirements. Specific performance metrics for this particular delivery order are not publicly available, but their continued selection for such contracts suggests a satisfactory performance history in meeting naval procurement needs.

What are the primary operational uses and importance of the AN/SSQ-125A sonobuoy?

The AN/SSQ-125A is a type of passive ranging sonar transducer used in anti-submarine warfare (ASW). It is designed to detect and localize submarines by analyzing acoustic signals. These sonobuoys are deployed from aircraft or ships and provide critical real-time acoustic data to naval forces, enabling them to track and potentially engage underwater threats. Their importance lies in maintaining situational awareness and superiority in the underwater domain.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this delivery order. Government contracts, especially those for hardware like sonobuoys, typically include specifications for reliability, operational parameters, and delivery schedules. However, these detailed performance requirements and the methods for tracking compliance are usually found within the full contract documentation and are not typically summarized in basic award notices.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0001919R0002

Offers Received: 2

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, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,633,450

Exercised Options: $11,633,450

Current Obligation: $11,633,450

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $4,053,798

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001919D0012

IDV Type: IDC

Timeline