DoD Awards $6.5M for T-9 Dozer Maintenance Manuals, Sole-Sourced to Caterpillar Inc

Contract Overview

Contract Amount: $6,502,066 ($6.5M)

Contractor: Caterpillar Inc

Awarding Agency: Department of Defense

Start Date: 2026-01-12

End Date: 2027-12-31

Contract Duration: 718 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DELIVERY ORDER W912CH-26-F-0058 IS FOR THE PROCUREMENT OF 33 CDRL'S TO INCORPORATE THE ELECTRO-OVER HYDRAULIC MAINTENANCE PROCEDURES FOR THE T-9 DOZER INTO THE COTS MANUAL.

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75039

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to CATERPILLAR INC for work described as: DELIVERY ORDER W912CH-26-F-0058 IS FOR THE PROCUREMENT OF 33 CDRL'S TO INCORPORATE THE ELECTRO-OVER HYDRAULIC MAINTENANCE PROCEDURES FOR THE T-9 DOZER INTO THE COTS MANUAL. Key points: 1. Contract awarded to Caterpillar Inc. for specialized maintenance procedures. 2. Focus on incorporating electro-hydraulic maintenance for T-9 Dozer into COTS manual. 3. Sole-source award raises questions about competition and potential cost savings. 4. Spending falls within the Construction Machinery Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $6.5M for 33 CDRLs to update a manual appears high. Benchmarking against similar technical manual updates or software integration contracts is difficult without more specific data on the scope of the electro-hydraulic procedures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Caterpillar Inc. This limits price discovery and may result in higher costs for taxpayers as competitive pressure is absent.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to a lack of competition.

Public Impact

Military readiness could be impacted if T-9 Dozer maintenance procedures are not accurately and efficiently updated. Taxpayers may be overpaying for technical documentation services due to the lack of competitive bidding. The specific nature of electro-hydraulic systems requires specialized knowledge, potentially justifying a sole-source award, but this needs verification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Addresses critical maintenance procedures for military equipment
Clear contract duration and delivery dates

Sector Analysis

This contract falls under Construction Machinery Manufacturing, specifically related to updating technical documentation for heavy equipment. Spending benchmarks for similar technical manual updates are difficult to ascertain without more granular data, but large sole-source awards warrant scrutiny.

Small Business Impact

The award to Caterpillar Inc., a large corporation, does not appear to involve small businesses. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

Oversight is needed to ensure the quality and accuracy of the incorporated maintenance procedures and to justify the sole-source award. A review of the procurement process and justification for sole-sourcing is recommended.

Related Government Programs

Construction Machinery Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competitive justification
Potential for overpayment due to lack of competition
Limited transparency in pricing
No apparent small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to CATERPILLAR INC. DELIVERY ORDER W912CH-26-F-0058 IS FOR THE PROCUREMENT OF 33 CDRL'S TO INCORPORATE THE ELECTRO-OVER HYDRAULIC MAINTENANCE PROCEDURES FOR THE T-9 DOZER INTO THE COTS MANUAL.

Who is the contractor on this award?

The obligated recipient is CATERPILLAR INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2026-01-12. End: 2027-12-31.

What is the justification for awarding this contract sole-source to Caterpillar Inc.?

The justification for a sole-source award typically rests on the unique capabilities or proprietary nature of the product or service. In this case, it would likely be Caterpillar's exclusive knowledge of the T-9 Dozer's electro-hydraulic systems and their existing COTS manual. However, the government should have explored if any competitive alternatives existed or if a different approach could have fostered competition.

What is the risk associated with the lack of competition for this contract?

The primary risk of a lack of competition is the potential for inflated pricing. Without competing bids, the awarded contractor may not be incentivized to offer the most cost-effective solution. This can lead to taxpayers bearing a higher cost than necessary for the goods or services received, and potentially less innovation.

How effective will this contract be in improving T-9 Dozer maintenance?

The effectiveness hinges on the quality of the incorporated electro-hydraulic maintenance procedures and their accurate integration into the COTS manual. If Caterpillar provides comprehensive and clear instructions, and if these procedures are validated by the Department of the Army, the contract can be highly effective in improving maintenance. However, the sole-source nature means effectiveness is not guaranteed by competitive pressure.

Industry Classification

NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $6,502,066

Exercised Options: $6,502,066

Current Obligation: $6,502,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV21D0034

IDV Type: IDC

Timeline