DoD Awards $8.2M for Forklifts to Caterpillar Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $8,288,128 ($8.3M)
Contractor: Caterpillar Inc
Awarding Agency: Department of Defense
Start Date: 2024-10-08
End Date: 2026-04-15
Contract Duration: 554 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Construction
Official Description: 8510940318!NUC CERT FORKLIFT 10K
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75039
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.3 million to CATERPILLAR INC for work described as: 8510940318!NUC CERT FORKLIFT 10K Key points: 1. Significant award for specialized construction machinery. 2. Caterpillar Inc. is a major player in this sector. 3. Potential for price fluctuations due to economic price adjustment. 4. Defense Logistics Agency is the contracting entity.
Value Assessment
Rating: good
The award amount of $8.2M for forklifts appears reasonable given the contract duration and the nature of specialized heavy machinery. Benchmarking against similar large-scale construction equipment procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers, as it encourages multiple bidders to offer their best prices, potentially leading to cost savings.
Public Impact
Ensures operational readiness for the Department of Defense by providing essential material handling equipment. Supports a major industrial manufacturer, potentially impacting employment and supply chains. The economic price adjustment clause may lead to increased costs for taxpayers if inflation rises significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause introduces cost uncertainty.
- No explicit mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a reputable manufacturer.
- Clear delivery and performance period.
Sector Analysis
This procurement falls within the Construction Machinery Manufacturing sector, which is critical for defense logistics and infrastructure support. Spending in this area is often substantial due to the specialized and durable nature of the equipment required.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to Caterpillar Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is managed by the Defense Logistics Agency, a key component of the DoD responsible for supply chain management. Oversight would focus on delivery timelines, equipment specifications, and adherence to the economic price adjustment terms.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost escalation due to EPA.
- Lack of small business participation noted.
- No data on long-term maintenance or lifecycle costs.
- Specific performance metrics not detailed in award.
Tags
construction-machinery-manufacturing, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.3 million to CATERPILLAR INC. 8510940318!NUC CERT FORKLIFT 10K
Who is the contractor on this award?
The obligated recipient is CATERPILLAR INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $8.3 million.
What is the period of performance?
Start: 2024-10-08. End: 2026-04-15.
What is the expected lifespan and maintenance cost of these forklifts to assess long-term value?
The provided data does not detail the expected lifespan or projected maintenance costs for the forklifts. A comprehensive value assessment would require this information, alongside details on the specific operational environment and usage intensity. Understanding these factors is crucial for determining the total cost of ownership beyond the initial procurement price.
How will the economic price adjustment clause be managed to mitigate potential cost overruns for taxpayers?
The management of the economic price adjustment (EPA) clause is critical. The contracting officer must closely monitor relevant economic indices and ensure that any price increases are justified and within the agreed-upon parameters. Transparency in reporting these adjustments and periodic reviews of the EPA's impact are essential to protect taxpayer interests from excessive inflation-driven cost hikes.
What performance metrics will be used to evaluate the effectiveness of these forklifts in meeting DoD operational needs?
Effectiveness will likely be measured by the forklifts' ability to meet specified performance requirements, such as lifting capacity, maneuverability in various terrains, and operational uptime. Key metrics could include adherence to delivery schedules, successful completion of material handling tasks, and minimal downtime due to mechanical failures. Post-delivery inspections and user feedback from DoD personnel will also be vital.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Caterpillar Inc.
Address: 5205 N O CONNOR BLVD STE 100, IRVING, TX, 75039
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,288,128
Exercised Options: $8,288,128
Current Obligation: $8,288,128
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE8EC23D0002
IDV Type: IDC
Timeline
Start Date: 2024-10-08
Current End Date: 2026-04-15
Potential End Date: 2026-04-15 00:00:00
Last Modified: 2025-12-18
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