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United States Navy

Ultra Electronics Holdings and Sparton announce contract win valued at $204.6 million

Ultra Electronics Holdings plc (LON:ULE) and Sparton DLS, LLC have today announced the award of subcontracts valued at $204.6 million to their ERAPSCO joint venture for the manufacture of sonobuoys for the United States Navy. The award is a GFY2020 delivery order for sonobuoy requirements under ERAPSCO’s five-year Indefinite Delivery Indefinite Quantity contract with the Department of the Navy.  

ERAPSCO will award production subcontracts in the amount of $101.7 million and $102.9 million to Ultra Electronics USSI and Sparton. Production operations will take place at Ultra Electronics USSI’s Columbia City, IN facility and Sparton’s DeLeon Springs, FL facility, and are expected to be completed by March 2022.

This announcement is in line with Ultra’s policy to announce orders of over 5% of Group sales.

Bill Toti, Chief Executive Officer of Sparton DLS, commented: 

“As someone who has been in the antisubmarine warfare business for over 35 years, I am proud that Sparton continues to provide the highest quality sonobuoy engineering and production to the US Navy and to allies throughout the world.  Sparton employees work with a great deal of pride and patriotism in support of our customers.”

Simon Pryce, Chief Executive Officer of Ultra Electronics, commented: 

“As expected, this is another significant order for Ultra under the IDIQ contract we were awarded in August last year. This contract underpins our increased focus on anti-submarine warfare and our ability through ERAPSCO to provide a range of key technologies and capabilities to support the U.S. Navy’s continued commitment to this important mission.

This award also reflects that, despite the challenges created by Covid 19, we are operating effectively and continue to support our customers due to the extraordinary efforts of our exceptional and committed team”.

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