Caterpillar Inc. (NYSE:CAT) has made a $663-million deal with the Pentagon.
The deal was announced by the Pentagon yesterday and will last for five years. It will have the U.S. Department of Defense’s Defense Logistics Agency contracting commercial construction equipment from Caterpillar Inc.
The commercial construction equipment from Caterpillar Inc. will be going to several different divisions of the military and government. This includes equipment for the Army, Navy, Air Force, Marine Corps, as well as for federal civilian agencies.
The Pentagon says that the commercial construction equipment from Caterpillar Inc. will see use at the following locations.
- North Carolina
- Georgia
- Texas
- Arkansas
- Wisconsin
- Minnesota
- Austria
- Belgium
- England
- France
- Italy
- Japan
The Pentagon is expecting to finish its use of the commercial construction equipment from Caterpillar Inc. by Aug. 28, 2022. The deal is at a fixed price with with economic-price-adjustment. It also doesn’t include any option periods.
The deal with Caterpillar Inc. has the Department of Defense using fiscal 2017 through 2022 defense working capital funds. The government organization notes that this was a competitive offering with four responses from companies seeking the contract for commercial construction equipment.
Caterpillar Inc. is a designer and maker of construction equipment. The company got its start back in 1925, but reorganized itself to become the company it is today in 1986. It’s current headquarters is in Peoria, Ill., but it is planning to move this to Chicago by the end of the year.
CAT stock was up slightly as of Wednesday morning and is up 25% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
