Sparton Corporation (NYSE: SPA) and Ultra Electronics Holdings plc (ULE) announce the award of subcontracts valued at $57 million to their ERAPSCO joint venture, for the manufacture of sonobuoys for the United States Navy. The award is a GFY15 delivery order provided as a requirement from ERAPSCO’s five year Indefinite Delivery Indefinite Quantity (IDIQ) contract. ERAPSCO will provide production subcontracts in the amount of $32.6 million and $24.4 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.
“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.
“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,” stated Rakesh Sharma, Chief Executive of Ultra Electronics.
Source: Sparton Corporation
Date: Feb 17, 2015