The Contract

The US Department of Defense Press Desk released today that Caterpillar [NYSE: CAT] has been awarded a contract to the sum of $663,584,042 for the production commercial construction equipment.


Source Excerpt

Defense Logistics Agency Contract:

“Caterpillar Inc., Peoria, Illinois, has been awarded a maximum $663,584,042 fixed-price with economic-price-adjustment contract for commercial construction equipment. This is a five-year contract with no option periods. This was a competitive acquisition with four responses received. Locations of performance are Illinois, North Carolina, Georgia, Texas, Arkansas, Wisconsin, Minnesota, Austria, Belgium, England, France, Italy and Japan, with an Aug. 28, 2022, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2017 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8EC-17-D-0012).”



Contract Interpretation

  • Fixed-Price with Economic-Price-Adjustment: A contract with such a price is not subject to change unless certain economic situations deem it necessary. Prices of material and costs of labor are generally items that fall under this category. More


Caterpillar Commercial Equipment

Caterpillar is well known across the world as the leading heavy equipment manufacturer, so it’s likely of no surprise that the US Military makes use of their product as well. These tools are utilized by the Defense Logistics Agency both in the support of the military, and in humanitarian or disaster relief.



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Most information for this post was retrieved from various sources listed throughout the post. For other sources, see below:

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