SUNNYVALE, Calif., Aug. 28, 2013 /PRNewswire/ -- Trimble (NASDAQ: TRMB) announced today that it has been awarded a five-year IDIQ (Indefinite Delivery Indefinite Quantity) contract from the U.S. Marine Corps and Army to provide construction grade control and survey systems. The contract is expected to generate approximately $63 million in revenue over its term; with a maximum not to exceed $99 million.
Under the contract, Trimble will supply its GPS base station receivers, grade lasers, grade control systems and construction design software for the Marine Corps' and Army's dozers, motorgraders as well as the Army's DEUCE (Deployable Universal Combat Earthmover) and scraper equipment. In addition, Trimble will supply the Marine Corps its GNSS survey systems, robotic total stations, data controllers and radios, Trimble and Spectra Precision® laser levels, Nikon autolevels, and office software used for surveying.
With dramatically reduced budgets, the U.S. military is looking to contain costs without sacrificing critical mission objectives. Trimble has delivered high-quality positioning solutions for over 20 years to the U.S. Government. The new equipment purchase will help the U.S. military to collect, manage and analyze complex information faster and easier during survey and construction missions, and reduce the exposure of soldiers in hostile conditions.
"The Trimble team is committed to assisting the U.S. military to achieve their objectives, including reducing the volume of heavy equipment deployed in geographic regions and fuel usage, which can enable significant cost savings for the U.S. military," said Steven W. Berglund, president and CEO of Trimble.
The Army first evaluated Trimble products at Fort Irwin, California in the 1990's. This evaluation and two additional tests demonstrated significant saving in productivity, time, fuel, labor and materials that would be achieved through the use of the systems. Trimble's earthmoving grade control systems are currently used on heavy construction equipment owned by the Air Force, Army, Navy and Marines.
Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location—including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies, such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978, Trimble is headquartered in Sunnyvale, Calif. For more information, visit: www.trimble.com.
Certain statements made in this press release are forward looking statements within the meaning of the Securities Exchange Act of 1934, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, and actual events and results may differ materially from those described in this news release. Factors that could cause or contribute to such differences include, but are not limited to, the amount and timing of revenue that Trimble may realize under the 5 year IDIQ contract award. More information about potential factors which could affect Trimble's business and financial results is set forth in reports filed with the SEC, including Trimble's most recent annual report on Form 10-K and quarterly report on Form 10-Q. All forward looking statements are based on information available to Trimble as of the date hereof, and Trimble assumes no obligation to update any such statements, whether as a result of new information, future events, or otherwise.