Ultra Electronics Holdings plc (ULE) and Sparton Corporation (NYSE:SPA) announce the award of subcontracts valued at $101.1 million to their ERAPSCO joint venture, for the manufacture of sonobuoys for the United States Navy. The award is a GFY16 ERAPSCO Indefinite Delivery Indefinite Quantity (IDIQ) contract release for sonobuoy requirements under ERAPSCO’s five year contract. ERAPSCO will provide production subcontracts in the amount of $46.8 million and $54.3 million to Ultra Electronics USSI and Sparton De Leon Springs, LLC respectively. Production will take place at Ultra Electronics USSI’s Columbia City, IN facility and Sparton’s De Leon Springs, FL facility and is expected to be completed by September 2017.
“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 U.S. Navy’s commitment to providing key technology for this important mission,” stated Rakesh Sharma, Chief Executive of Ultra Electronics.
Interim President and Chief Executive Officer of Sparton Corporation, Joseph Hartnett, elaborated by stating, “We are grateful for the confidence the U.S. Navy has demonstrated in Sparton by awarding this contract. We remain committed to delivering high performance product solutions to enable their success in undersea warfare missions today and in the future.”
Source: Sparton Corporation
Date: May 10, 2016