Deal overview
Teradyne Inc. (NYSE:TER) has received a firm-fixed-price requirements contract from the U.S. Department of War valued at $139,903,994. The company will supply versatile diagnostic automatic test station kits intended to enable the assembly of standardized, commercially available test equipment along with related components and software.
Scope and location of work
The contract provides for the delivery of kits required to assemble standardized, commercially available test equipment, components, and software. Performance under the contract will take place at Robins Air Force Base in Georgia. The work is scheduled to continue through an expected completion date of June 12, 2031.
Procurement details
The award was made via a sole source acquisition. At the time of the award announcement no funds were being obligated. The contracting activity named on the contract is the Air Force Sustainment Center at Robins Air Force Base, Georgia. The contract number is FA857926D0004.
Company information
Teradyne is headquartered in North Reading, Massachusetts. The company is the recipient of the contract and will fulfill the requirements set forth under the agreement.
Context and implications
The contract centers on supply and assembly kits for diagnostic automatic test stations and specifies standardized, commercially available equipment and software as the basis for the kits. The arrangement is structured as a firm-fixed-price, requirements contract with performance located at a U.S. Air Force installation and administered by the Air Force Sustainment Center.
What to watch
Key elements to monitor as the program progresses include adherence to the June 12, 2031 completion timeline and any future funding actions, given that no funds were obligated at the time of award.