The Erapsco joint venture between Sparton Corporation and Ultra Electronics Holdings (ULE) has received subcontracts worth $87m for the manufacturing of sonobuoys for the US Navy.
Under the indefinite-delivery, indefinite-quantity (IDIQ) contract, which forms part of an existing five-year deal, Erapsco will deliver production subcontracts to Ultra Electronics USSI and Sparton DeLeon Springs, worth $47m and $40m respectively.
Ultra Electronics chief executive Rakesh Sharmasaid: "I am pleased that we have secured this important contract that will continue to provide critical sensor capabilities to the US Navy.
"This contract is a reflection of the increased focus on anti-submarine warfare and 'pivot to the Pacific' spoken about by the US Navy."
Production under this contract will take place at Ultra Electronics USSI's Columbia City, Indiana facility and Sparton's DeLeon Springs, Florida facility in US.
Work is expected to be completed by March 2017.
Sparto president and CEO Cary B Wood said: "We are firmly committed to the development of innovative technology and to providing the US Navy with the highest quality products that help further its mission."
In February this year, Erapsco secured subcontracts worth $57m to build sonobuoys for the US Navy.
Of the total contract value, $32.6m was awarded to Sparton DeLeon Springs and approximately $24.4m to Ultra Electronics USSI.
In addition to assisting in the detection, classification, and localisation of opponent submarines during peacetime and combat missions, sonobuoys can be deployed to assess environmental circumstances and help install top search tactics, as well as communication with friendly vessels.
The sonobuoys are also capable of transmitting an acoustical signal source and accept underwater signals of interest, which are then delivered to monitoring units for analysis.