Volvo’s Mack Truck subsidiary has been awarded a $177.5 million contract by the Department of Defense for the purchase of new trucks and trailers.
The contract, is designated as a “fixed-price with economic-price-adjustment/indefinite-delivery” contract. This means that while the price paid per truck / trailer may be fixed, there is no obligation to the Pentagon to buy a specific number of trucks – although the size of the contract suggests their intention to buy quite a few trucks.
The average Mack truck ranges in price from just under $100,000 to as high as $200,000, this contract could easily include the sale and purchase of 1,000 or more trucks and trailers from Mack’s several product lines, with sales running through April 9, 2017. Purchases will be made for the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies.