Sparton Corporation (NYSE:SPA) announces that its Joint Venture with Ultra Electronics Holdings plc (ULE), ERAPSCO, has been awarded a contract valued at $166 million for the manufacture of sonobuoys for the United States Navy. The contract provides the base year award of a five year Indefinite Delivery Indefinite Quantity (IDIQ) contract that has a maximum value of $810 million. ERAPSCO will provide production subcontracts in the amount of $90.5 million and $75.5 million to Sparton DeLeon Springs, LLC and Ultra Electronics USSI respectively. Production will take place at Sparton’s DeLeon Springs, FL facility as well as Ultra’s Columbia City, IN facility and is expected to be completed by June 2020.
“We are firmly committed to development of innovative technology and to providing the U.S. Navy with the highest quality products that help further its mission,” stated Cary B. Wood, President and Chief Executive Officer of Sparton.
Source: Sparton Corporation
Date: Aug 7, 2014