Author: Nichols Martin|| Date Published: March 31, 2022
Naval Sea Systems Command has issued a $222 million modification on a sonobuoy production contract shared between Lockheed Martin (NYSE: LMT) and ERAPSCO.
The two companies will compete for orders and deliver up to 18,000 units of the AN/SSQ-125A series sonobuoy to the U.S. Navy under an exercised contract option, the Department of Defense said Wednesday.
Ninety percent of Lockheed’s work will take place in Manassas, Virginia, and the rest in Clearwater, Florida. ERAPSCO will perform 69 percent of its work in De Leon Springs, Florida, and the remaining 31 percent in Columbia City, Indiana.
NAVSEA did not obligate funds at the time of option award and expects both contractors to finish services in December 2024.
The original indefinite-delivery/indefinite-quantity contract announced in December 2018 had an aggregate ceiling of $220.8 million and a completion date of September 2021.
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