DoD Awards $3.08M Contract for Construction Machinery Manufacturing to Altec Industries, Inc
Contract Overview
Contract Amount: $3,079,526 ($3.1M)
Contractor: Altec Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2026-01-07
End Date: 2028-10-31
Contract Duration: 1,028 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 8511843821!BCKT TRCK
Place of Performance
Location: BIRMINGHAM, SHELBY County, ALABAMA, 35242
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $3.1 million to ALTEC INDUSTRIES, INC. for work described as: 8511843821!BCKT TRCK Key points: 1. Contract awarded to Altec Industries, Inc. for construction machinery. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 1028 days. 4. This falls under the Construction Machinery Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $3.08 million for construction machinery over approximately 3 years appears reasonable given the duration and scope. Benchmarking against similar, large-scale construction equipment procurements would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: The competitive nature of this award is positive for taxpayers, as it aims to secure the best possible price for the required construction machinery.
Public Impact
Ensures availability of essential construction machinery for Department of Defense operations. Supports the construction and maintenance of military infrastructure. Potential impact on the broader construction equipment market through a significant award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single manufacturer for specific machinery needs.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides supply chain stability.
Sector Analysis
The construction machinery manufacturing sector is vital for infrastructure development and maintenance. Spending in this area by the DoD is typically driven by operational needs and base development, with benchmarks varying significantly based on equipment type and quantity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Standard oversight procedures for Department of Defense contracts will apply, including monitoring performance, delivery schedules, and adherence to contract terms. The Defense Logistics Agency is responsible for managing this award.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract duration may lead to obsolescence or increased maintenance.
- Potential for price volatility over the contract term.
- Specific machinery types and their market alignment are not detailed.
- Small business participation is not specified.
Tags
construction-machinery-manufacturing, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.1 million to ALTEC INDUSTRIES, INC.. 8511843821!BCKT TRCK
Who is the contractor on this award?
The obligated recipient is ALTEC INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $3.1 million.
What is the period of performance?
Start: 2026-01-07. End: 2028-10-31.
What specific types of construction machinery are included in this contract, and how do their individual costs compare to market rates?
The provided data does not specify the exact types of construction machinery. A detailed breakdown of the machinery and their associated costs would be required to compare against market rates. This would involve analyzing the unit prices for bulldozers, excavators, cranes, etc., and benchmarking them against industry averages and recent procurements by other government agencies or large private sector entities.
What are the potential risks associated with the long contract duration (1028 days) for construction machinery?
A long contract duration for construction machinery carries risks such as technological obsolescence, increased maintenance costs over time, and potential for price fluctuations in raw materials or labor. There's also a risk that the specific machinery needs might evolve, making the contracted equipment less suitable or requiring costly modifications. Ensuring robust warranty and maintenance clauses within the contract can mitigate some of these risks.
How effectively does the 'full and open competition' method ensure value for money in the procurement of specialized construction machinery?
Full and open competition is generally effective in ensuring value for money by fostering a competitive environment where multiple vendors can propose solutions and prices. For specialized construction machinery, this method allows for a wider range of technical capabilities and pricing structures to be evaluated, potentially leading to better-tailored solutions and cost savings compared to limited or sole-source procurements. However, the effectiveness also depends on the clarity of the solicitation and the government's ability to accurately assess technical merit alongside price.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 210 INVERNESS CENTER DR, BIRMINGHAM, AL, 35242
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $3,079,526
Exercised Options: $3,079,526
Current Obligation: $3,079,526
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE8EC24D0026
IDV Type: IDC
Timeline
Start Date: 2026-01-07
Current End Date: 2028-10-31
Potential End Date: 2028-10-31 00:00:00
Last Modified: 2026-01-07
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