Sparton Corporation (NYSE: SPA) today announced the award of a $17 million Indefinite Delivery/Indefinite Quantity (ID/IQ) Engineering Services Subcontract with the United States Navy as part of the ERAPSCO joint venture. The five-year subcontract is for technical efforts related to continued sonobuoy development, improved performance and advanced capabilities.
During the term of the five-year subcontract, specific tasks will be identified and individual task orders will be issued to ERAPSCO. Thereafter, Sparton's subcontract will be adjusted to meet appropriate target costs in total amounts not to exceed $17 million. Technical work associated with the applicable task orders will be performed at Sparton's DeLeon Springs, Florida facility.
ERAPSCO is a joint venture between Sparton and USSI, a subsidiary of Ultra Electronics Holdings PLC. Under the ERAPSCO subcontract, Sparton will provide technical support of advanced sonobuoy projects, enhanced performance initiatives and integration/test requirements. The primary purpose of a sonobuoy is to detect acoustic emissions or reflections from potentially hostile submarines and transmit these signals to US Navy airborne antisubmarine warfare forces.
"Sparton is firmly committed to the development of innovative technology and to supplying the U.S. Navy with quality products that help secure our borders. We are proud to continue in our role as a technology partner for the U.S. Navy," said Cary Wood, president and CEO, Sparton Corporation.
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