The Defense Department recently awarded a number of contracts including a $382.5 million contract for fire and emergency vehicles for the Army, Navy, Air Force, Marine Corps, and federal civilian agencies. The contract is a “maximum value, fixed-price with economic-price-adjustment contract” which gives the Polaris Defense subsidiary the right to compete with other vendors for various orders under the larger contract. Polaris will only get the portion of the total contract for which it wins individual orders from the various agencies. The completion date for the contract is May 17, 2018.
Polaris management has targeted military sales a key strategic driver for future revenue growth. According to the company, they currently sell about $50 million of products, including ATVs and UTVs, to military customers and is targeting $200 million in annual revenues. Polaris was also one of the first vendors to offer a six wheeled UTV that has been popular with Bureau of Land Management fire units which fight wild fires. Learn more: Fool.com