Ultra Electronics joint venture awarded billion-dollar US Navy contract
Ultra Electronics Holdings and its partner Sparton DeLeon Springs announced the award of an ‘IDIQ’ contract valued at a not-to-exceed amount of $1.04bn (£0.86bn) to their ERAPSCO joint venture on Friday, for the manufacture of sonobuoys for the United States Navy.
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The FTSE 250 company said the contract provided a base year award of a five-year indefinite delivery indefinite quantity (IDIQ) contract.
It said ERAPSCO would provide production subcontracts in support of the US Navy’s 2019 base year delivery order in the amount of $75.75m and $75.26m to Ultra Electronics USSI and Sparton, respectively.
Production would take place at Sparton's DeLeon Springs, Florida facility as well as Ultra's Columbia City, Indiana facility.
“I am very pleased that we have secured this important contract for Ultra and that we will continue to provide critical sensor capabilities to the US Navy for many years ahead,” said Ultra Electronics chief executive officer Simon Pryce.
“This contract is a reflection of the increased focus on anti-submarine warfare by the US Navy and ERAPSCO's strength and expertise in this area.”
William Toti, chief executive of Sparton ECP, added that “hundreds” of Sparton employees worked “tirelessly” with the US fleet sailors “always in mind”.
“It's Sparton's great honor to provide both innovative technology and a stable industrial base for our undersea forces.”