Navy awards $10.8M for sonobuoys, with 2026 completion, to ERAPSCO

Contract Overview

Contract Amount: $10,861,493 ($10.9M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2022-12-27

End Date: 2026-03-31

Contract Duration: 1,190 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPTION YEAR 3 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 $10.9 million to ERAPSCO for work described as: OPTION YEAR 3 PROCUREMENT OF AN/SSQ-125A SONOBUOYS Key points: 1. Contract value represents a significant investment in naval acoustic detection capabilities. 2. The procurement is part of a larger strategy to maintain and modernize sonar systems. 3. ERAPSCO's selection suggests a competitive landscape for specialized naval electronics. 4. The firm-fixed-price structure aims to control costs and provide predictable spending. 5. Delivery orders indicate a phased approach to fulfilling the sonobuoy requirement. 6. The contract duration spans over three years, ensuring sustained supply.

Value Assessment

Rating: good

The contract value of approximately $10.8 million for sonobuoys appears reasonable given the specialized nature of the equipment and the duration of the contract. Benchmarking against similar procurements for acoustic sensors and detection systems would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor, which can be advantageous for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders (as suggested by 'no': 2) implies a degree of competition, though the exact number of proposals received and evaluated would offer a clearer picture of the competitive intensity. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It allows the government to access the best available technology and pricing from a wide range of qualified suppliers.

Public Impact

The U.S. Navy benefits from a reliable supply of critical sonobuoys for anti-submarine warfare. These sonobuoys are essential for underwater surveillance, detection, and tracking of submarines. The contract supports naval operations and national security by enhancing maritime domain awareness. The procurement indirectly supports jobs in the defense manufacturing sector, particularly in Indiana where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of sonobuoy technology given the rapid advancements in underwater warfare.
Dependence on a limited number of suppliers for highly specialized components could pose supply chain risks.
Ensuring interoperability with existing and future naval platforms requires rigorous testing and validation.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract duration allows for sustained supply and planning for naval operations.

Sector Analysis

The procurement of sonobuoys falls within the defense electronics and systems manufacturing sector. This industry is characterized by high research and development costs, stringent quality requirements, and long product lifecycles. The market is often dominated by a few large defense contractors and specialized suppliers. Comparable spending benchmarks would involve analyzing other contracts for acoustic sensors, sonar systems, and related naval warfare equipment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is possible that subcontracting opportunities may exist for small businesses within ERAPSCO's supply chain, but this is not explicitly detailed. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for technology obsolescence
Supply chain dependencies for specialized components
Interoperability with evolving naval systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to ERAPSCO. OPTION YEAR 3 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 $10.9 million.

What is the period of performance?

Start: 2022-12-27. End: 2026-03-31.

What is the historical spending trend for sonobuoys by the Department of the Navy?

Analyzing historical spending on sonobuoys by the Department of the Navy reveals a consistent need for these critical components, driven by ongoing anti-submarine warfare (ASW) requirements. While specific figures fluctuate year-to-year based on modernization programs, fleet readiness needs, and geopolitical threats, the overall trend indicates sustained investment. For instance, prior to this $10.8 million award, the Navy likely procured sonobuoys through various contracts, potentially with different manufacturers or through different contracting vehicles like indefinite-delivery/indefinite-quantity (IDIQ) contracts. Examining contract databases over the past 5-10 years would show the aggregate annual spending, identify key contractors, and highlight any significant shifts in procurement volume or technology focus. This context helps assess whether the current award represents a typical procurement level or a deviation due to specific program needs or market conditions.

How does the unit cost of these sonobuoys compare to similar systems procured by other military branches or allied nations?

A direct comparison of the unit cost for these specific AN/SSQ-125A sonobuoys is challenging without detailed pricing breakdowns from the contract. However, the AN/SSQ-125A is a widely used system, and its cost can be benchmarked against publicly available data for similar sonobuoy types or against historical Navy procurements. Factors influencing unit cost include the specific model's capabilities (e.g., active vs. passive, data processing features), order volume, and the competitive landscape at the time of procurement. If this $10.8 million contract covers a significant quantity, the per-unit cost might be lower due to economies of scale. Comparing with procurements by other services like the Air Force (for airborne ASW) or allied navies (e.g., NATO members) would require accessing their respective procurement data, which can be less transparent. Generally, specialized defense hardware like sonobuoys command higher prices than mass-produced electronics due to R&D investment, rigorous testing, and niche manufacturing.

What are the key performance metrics or technical specifications that ERAPSCO must meet under this contract?

Under this contract, ERAPSCO must meet stringent performance metrics and technical specifications related to the AN/SSQ-125A sonobuoys. These typically include acoustic performance (sensitivity, frequency range, signal-to-noise ratio), operational depth and temperature ranges, battery life, data transmission reliability, and physical durability to withstand deployment and recovery. The sonobuoys must be compatible with the Navy's existing sonar systems and processing equipment. Specific requirements often detail the type of sonobuoy (e.g., air-deployable, expendable), its intended function (e.g., passive detection, active ranging), and its operational lifespan. Failure to meet these specifications could result in contract non-conformance, rejection of delivered units, and potential penalties, underscoring the importance of quality control and adherence to military standards throughout the manufacturing process.

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

ERAPSCO (Eagan, Ramseur, & Associates, Inc. / Pan-American Systems, Inc.) has a significant track record as a prime contractor and supplier of sonobuoys and related naval acoustic systems to the U.S. Navy and other government agencies. They have been a key player in the sonobuoy market for many years, often winning large contracts for various types of sonobuoys, including the AN/SSQ-125A. Their history typically involves fulfilling complex delivery orders under competitive solicitations. While specific performance details for past contracts are not always public, their continued success in winning substantial awards in this specialized area suggests a consistent ability to meet technical requirements, delivery schedules, and quality standards expected by the Navy. Assessing their past performance would involve reviewing contract award histories, any reported contract disputes or terminations, and customer feedback if available through government performance rating systems.

Are there any identified risks associated with the contractor (ERAPSCO) or the specific technology (AN/SSQ-125A sonobuoys)?

Risks associated with ERAPSCO primarily revolve around potential supply chain disruptions for specialized components, manufacturing capacity constraints if demand surges, and the inherent risks of any sole-source or limited-competition supplier if they were to dominate a niche market (though this contract was full and open). For the AN/SSQ-125A sonobuoy technology, risks include potential obsolescence as newer, more advanced acoustic systems are developed, and the possibility of performance degradation over time or under extreme environmental conditions. Ensuring interoperability with evolving naval platforms is also a continuous challenge. Furthermore, geopolitical factors could impact the availability of raw materials or increase demand, potentially affecting delivery timelines and costs. The government mitigates these risks through contract clauses, performance monitoring, and maintaining relationships with multiple potential suppliers where feasible.

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: $10,861,493

Exercised Options: $10,861,493

Current Obligation: $10,861,493

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