The joint venture (JV) company between Sparton and Ultra Electronics, Erapsco, has secured a new order for the production of sonobuoys for the US Navy.
The latest $28.4m award represents a government fiscal year 2018 (GFY18) indefinite delivery, indefinite quantity (IDIQ) contract release for the delivery of sonobuoys under Erapsco’s current five-year deal.
Ultra Electronics executive chairman Douglas Caster said: “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 the US Navy’s commitment to providing key technology for this important mission.”
The deal will see the JV firm provide production subcontracts worth $17.2m and $11.2m to Ultra Electronics USSI and Sparton De Leon Springs respectively.
A sonobuoy is a tactical sonar system that is primarily used for transmitting submarine activity.
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It is considered a major technology system for anti-submarine warfare applications.
Sparton interim president and chief executive officer Joe Hartnett said: “Undersea warfare is a vital part of the defence of our nation and our allies throughout the world.
“We are honoured that the navy continues to rely on us to manufacture a product so fundamental to that task.”
Work on the project is expected to be completed by December next year and will be carried out at Ultra Electronics USSI’s site in Columbia City, Indiana, as well as Sparton’s facility in De Leon Springs, Florida.
Erapsco previously received a $77.6m order for the manufacture of sonobuoys for the US Navy in May last year.
The US specification sonobuoys are sold through Erapsco.
In addition, Sparton has ended a $234m merger agreement with Ultra Electronics as part of a separate development, following concerns raised by the US Department of Justice (DOJ).
The deal was originally announced in July 2017 and was unanimously approved by Sparton’s Board of Directors.