Navy awards $306M contract for sonobuoys to ERAPSCO, supporting international allies
Contract Overview
Contract Amount: $305,907,210 ($305.9M)
Contractor: Erapsco
Awarding Agency: Department of Defense
Start Date: 2023-03-29
End Date: 2026-03-31
Sector: Defense
Official Description: FY23 ORDER FOR AN/SSQ-53G (UK), AN/SSQ-53G (ROK), AN/SSQ-53G (BAHRAIN), AN/SSQ-62F (UK), AN/SSQ-62F(ROK), & AN/SSQ-101B (UK)
Plain-Language Summary
Department of Defense obligated $305.9 million to ERAPSCO for work described as: FY23 ORDER FOR AN/SSQ-53G (UK), AN/SSQ-53G (ROK), AN/SSQ-53G (BAHRAIN), AN/SSQ-62F (UK), AN/SSQ-62F(ROK), & AN/SSQ-101B (UK) Key points: 1. Significant investment in advanced acoustic detection systems. 2. Sole-source award to ERAPSCO, a joint venture. 3. Potential for follow-on orders and sustainment. 4. Supports critical naval warfare capabilities for multiple nations.
Value Assessment
Rating: good
The value of this order is substantial, reflecting the advanced nature and quantity of sonobuoys procured. It represents a significant investment in naval defense capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to ERAPSCO. ERAPSCO is a joint venture between Sparton and Ultra Electronics, which has historically been a primary supplier for these types of systems.
Taxpayer Impact: Taxpayer funds are being used to procure essential defense equipment for the U.S. Navy and allied nations.
Public Impact
Enhances maritime surveillance capabilities. Strengthens interoperability with allied forces. Supports anti-submarine warfare readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single entity for critical components.
- Potential for price increases in future sole-source procurements.
Positive Signals
- Ensures availability of advanced sonobuoy technology.
- Supports U.S. foreign military sales objectives.
- Provides critical intelligence gathering assets.
Sector Analysis
This procurement falls within the defense sector, specifically focusing on electronic warfare and surveillance equipment essential for naval operations.
Small Business Impact
The contract was awarded to ERAPSCO, a joint venture, and does not appear to include specific set-aside provisions for small businesses.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract, ensuring timely delivery and adherence to specifications. Oversight is crucial given the sole-source nature of the award.
Related Government Programs
- AN/SSQ-53G Sonobuoy
- AN/SSQ-62F Sonobuoy
- AN/SSQ-101B Sonobuoy
Risk Flags
- Sole-source dependency
- Supply chain risk for specialized components
Tags
defense, naval-operations, sonobuoys, foreign-military-sales, sole-source, maritime-surveillance, anti-submarine-warfare, department-of-defense, department-of-the-navy
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $305.9 million to ERAPSCO. FY23 ORDER FOR AN/SSQ-53G (UK), AN/SSQ-53G (ROK), AN/SSQ-53G (BAHRAIN), AN/SSQ-62F (UK), AN/SSQ-62F(ROK), & AN/SSQ-101B (UK)
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 $305.9 million.
What is the period of performance?
Start: 2023-03-29. End: 2026-03-31.
Analysis insight 1
The sonobuoys procured are critical for detecting and tracking submarines.
Analysis insight 2
The international sales component indicates strong allied demand for U.S. defense technology.
Analysis insight 3
The sole-source nature suggests a long-standing relationship and specialized production capabilities.