SCHAUMBURG, Ill., Aug. 6 (UPI) -- The U.S. Navy has issued a new contract to a joint venture of Sparton Corporation and Ultra Electronics Holdings to manufacture sonobuoys.
Sonobuoys are a tactical sonar system for detecting submarines and tracking their activity. The sonobuoys are dropped by aircraft and deploy a surface float with a transmitter and underwater sensors on impact.
"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," said Cary B. Wood, president and chief executive officer of Sparton Corporation.
Production of the sonobuoys will be performed by ERAPSCO. The contract is for one year and carries a value of $166 million.
Sparton says the award is the first year of a five-year indefinite-delivery/indefinite-quantity contract that has a maximum value of $810 million.
Production of the sonobuoys is expected to be completed in 2020.