Oct. 11 (UPI) -- The Defense Logistics Agency has contracted Clarke Power Services Inc., of Henderson, Kentucky, a maximum of about $17.6 million for five-ton, medium tactical vehicle transmissions.
The transmission produced by Clarke Power Services would be used in the Defense Department's current Family of Medium Tactical Vehicles, which includes vehicles that vary by payload and mission requirements. The vehicles were heavily used during the recent hurricanes that struck Texas and Florida, due to their ability to transverse flood zones.
The contract is a firm-fixed price, meaning it does not cover the amount of resources needed to complete the order or the time expended by the contractor. However, the contract is slated to be classified as an indefinite-delivery, indefinite-quantity deal, paving the way for future business ventures between the Defense Department and the Kentucky-based business.
The announcement from Pentagon officials Tuesday calls for a three-year contract with no option periods. Work is said to be completed in Kentucky and Ohio by Oct. 12, 2020 for delivery to the U.S. Army.
The money allocated to the project will come from the Army's working capital funds between the 2018 and 2021 fiscal years.