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Caterpillar Wins $641 Million Contract From U.S. Department of Defense

Caterpillar Inc. (NYSE: CAT) this week announced it was awarded a long-term contract to manufacture 621G wheeled tractor scrapers for the U.S. Department of Defense worth up to $641.2 million. The wheeled tractor scrapers will be manufactured at Caterpillar's facility in Decatur, Ill. The machines will support the U.S. Marine Corps and the U.S. Army and will be used, along with other key pieces of Cat equipment, in construction engineering operations around the world, such as to construct roads and airfields and in other jobs requiring large amounts of dirt to be moved quickly.

These machines will have specifications called for by the U.S. Marine Corps and U.S. Army, including lift and tie-down provisions to allow for military transportation and keyless engine start. The five-year contract has the option of being extended for up to an additional five years. If the contract is extended for the full 10 years, the U.S. Department of Defense can potentially order up to 909 wheeled tractor scrapers.

"This contract marks the largest single award Caterpillar has won from the U.S. Department of Defense,” said Bill Springer, Caterpillar vice president with responsibility for Diversified Products. “This is an important win for Caterpillar, our Decatur facility and U.S. Marines and Army soldiers."

This contract was solicited under full and open competition, and the U.S. Marine Corps Systems Command of Quantico, Va., will serve as the contracting activity throughout its duration.

Caterpillar Inc., Peoria, Ill., manufactures construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.

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