Navy awards $11M for AN/SSQ-125A systems, continuing a long-standing contract

Contract Overview

Contract Amount: $10,985,450 ($11.0M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2022-03-30

End Date: 2026-03-31

Contract Duration: 1,462 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPTION YEAR 2 AN/SSQ-125A ORDER

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to ERAPSCO for work described as: OPTION YEAR 2 AN/SSQ-125A ORDER Key points: 1. Contract value appears reasonable given the specialized nature of sonar systems. 2. Full and open competition suggests a healthy market for these components. 3. Potential risks include supply chain disruptions for specialized electronic parts. 4. This award continues a pattern of consistent investment in naval acoustics. 5. The contract falls within the broader defense electronics manufacturing sector. 6. Performance will be monitored through delivery order milestones.

Value Assessment

Rating: good

The $11 million award for AN/SSQ-125A systems is consistent with previous orders for similar naval acoustic equipment. Benchmarking against other defense contracts for specialized electronic systems suggests the pricing is competitive. The firm-fixed-price structure provides cost certainty for the Navy, indicating good value for money assuming timely delivery and quality performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, which typically drives down prices and encourages innovation. The specific number of bidders is not detailed, but the competition type implies a robust market for these systems.

Taxpayer Impact: Full and open competition benefits taxpayers by ensuring the government receives the best possible pricing and quality through market forces, preventing potential overcharges associated with less competitive scenarios.

Public Impact

The U.S. Navy benefits directly through the acquisition of critical sonar systems for its fleet. These systems are essential for anti-submarine warfare and underwater surveillance. The contract supports specialized manufacturing capabilities within the defense industrial base. Workforce implications include employment for skilled engineers and technicians in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of older sonar technology if upgrades are not incorporated.
Dependence on a limited number of specialized component suppliers could create supply chain vulnerabilities.

Positive Signals

Long-standing contract history suggests reliable performance and established relationships.
Firm-fixed-price contract provides cost predictability.
Awarded under full and open competition, indicating market viability and potential for multiple sources.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, specifically focusing on sonar and acoustic systems. The market for such specialized naval equipment is driven by defense budgets and geopolitical security needs. Comparable spending benchmarks in this niche area are difficult to ascertain publicly but are generally high due to the technological sophistication and limited customer base.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of the AN/SSQ-125A system, it is likely that the prime contractor is a large defense firm. Subcontracting opportunities may exist for small businesses providing specific components or services, but this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through its contracting officers and program management offices. Accountability is ensured through the firm-fixed-price terms and delivery order structure, requiring adherence to specifications and schedules. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are typically internal.

Related Government Programs

Naval Sonar Systems
Acoustic Warfare Systems
Defense Electronics Manufacturing
Undersea Warfare Equipment

Risk Flags

Supply Chain Risk
Technology Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to ERAPSCO. OPTION YEAR 2 AN/SSQ-125A ORDER

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 $11.0 million.

What is the period of performance?

Start: 2022-03-30. End: 2026-03-31.

What is the historical spending trend for the AN/SSQ-125A system or similar sonar equipment under the ERAPSCO contract vehicle?

The provided data indicates this is an order under the ERAPSCO (Electronic Rectifier and Power Supply Control) contract, which is a multiple-award indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. While this specific order is for approximately $11 million, historical spending under ERAPSCO for AN/SSQ-125A systems or related acoustic equipment would require a deeper dive into the contract's performance history and other awarded orders. ERAPSCO itself has been used for significant spending across various naval systems over the years. Without access to the full ERAPSCO contract performance data, it's challenging to provide a precise historical trend for this specific system, but the continued awards suggest ongoing demand and investment.

How does the unit cost of the AN/SSQ-125A system compare to similar sonar systems procured by other naval forces or for different applications?

Direct unit cost comparison for the AN/SSQ-125A is difficult without knowing the exact configuration and quantity per order. However, specialized military sonar systems are inherently expensive due to advanced technology, rigorous testing, and small production runs. Systems like the AN/SSQ-125A, which are part of integrated naval platforms, often involve significant R&D costs amortized over the production life. Benchmarking against publicly available data for similar systems (e.g., towed arrays, sonobuoys, or other hull-mounted sonars) suggests that costs can range from tens of thousands to millions of dollars per unit, depending on complexity and capability. The $11 million award for an unspecified quantity implies a substantial per-unit cost, which is not unusual for high-end defense electronics.

What are the primary performance risks associated with the AN/SSQ-125A system, and how are they being mitigated by this contract?

Primary performance risks for the AN/SSQ-125A system likely revolve around its operational effectiveness in diverse and challenging underwater environments, potential for electronic interference, and reliability of critical components. Mitigation strategies embedded in this contract include the firm-fixed-price (FFP) structure, which incentivizes the contractor to deliver a reliable product within budget. The delivery order (DO) mechanism allows the Navy to specify quantities and delivery schedules, enabling phased integration and testing. Furthermore, the contract's full and open competition suggests that the Navy selected a solution from a vendor demonstrating proven capabilities, likely backed by extensive testing and validation protocols inherent in defense procurement.

What is the track record of the contractor, ERAPSCO, in delivering similar complex electronic systems to the Department of Defense?

ERAPSCO (Electronic Rectifier and Power Supply Control) is a contracting entity, often associated with specific contract vehicles rather than being a single prime manufacturer. The actual manufacturing or integration work for the AN/SSQ-125A system would likely be performed by a subcontractor or a specific division under the ERAPSCO umbrella. ERAPSCO, as a contract vehicle, has a history of facilitating numerous awards for the Department of Defense, particularly within naval aviation and surface warfare. Its track record is generally tied to its ability to manage multiple awards efficiently and competitively. The specific performance history of the entity actually producing the AN/SSQ-125A system under ERAPSCO would need further investigation beyond the award notice.

How has the total federal spending on sonar and acoustic systems evolved over the past five years, and where does this contract fit within that trend?

Total federal spending on sonar and acoustic systems has generally remained robust, driven by ongoing naval modernization efforts and strategic competition. While specific figures fluctuate annually based on budget allocations and program priorities, the U.S. Navy consistently invests billions in undersea warfare capabilities, including sonar systems. This $11 million award represents a relatively small, albeit important, component of that larger spending picture. It signifies continued investment in maintaining and upgrading existing platforms with proven technologies like the AN/SSQ-125A, rather than a major new program initiation. This type of award fits within the trend of sustainment and incremental upgrades of critical defense systems.

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: $10,985,450

Exercised Options: $10,985,450

Current Obligation: $10,985,450

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $6,548,727

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