by US correspondent Roger Renstrom
Terex Corp has won a major competition to supply military all-terrain cranes (MAC) to the Quantico, Virginia-based systems command of the United States Marine Corps (USMC).

The program could involve delivery of up to 130 cranes worth USD88.6 million. Manufacturing will occur at the Terex-Demag plant in Zweibruecken, Germany.

As with all multi-year military programs, future procurements are conditioned on federal budgets and USMC needs.

"The bid process was a full and open competition and we were competitively awarded the contract," said Terex investor relations director Tom Gelston.

The systems command said other bidders were Manitowoc Crane Group's Grove operation in Shady Grove, Pennsylvania, USA; a business unit of Liebherr-International AG of Bulle, Switzerland; and American Material Handling Inc, of Lilburn, Georgia, USA.

Under federal acquisition regulations for commercial items, officials posted a request for bids in December 2004 and awarded the contract in August 2005.

Terex has a commitment to deliver the first four 50 tonne cranes by July 2006 for required USMC verification testing at the Aberdeen Proving Grounds in Maryland. Worth USD5.9 million, the order includes accessories, factory testing and limited logistics support and training.

To meet USMC requirements, the Terex-Demag MAC-50 is a new commercial derivative of the AC-50-1 all-terrain commercial crane focused on the US market.

The USMC MAC-50 configuration includes salt-water fording capability up to five feet (1.5 metres), US bridge law requirements compliance, and a drive train with an engine from the Cummins Engine Co and a transmission from the Allison Transmission unit of General Motors Corp.

The USMC included a fording capability in its original requirement but deleted that specification, apparently because other manufacturers were having trouble with it. Terex had no problem meeting the fording specification, Gelston said.

When the USMC changed the specification, there was no cost benefit to lowering the Terex MAC-50's ability to ford in salt water. Gelston said Terex left the capability in its offer as a value-added proposition, not because it was a USMC-specified requirement.

Terex Government Programs will supply the cranes through its Stafford, Virginia, contracting office, and Terex American Cranes, in Wilmington, North Carolina, will provide global logistical support.

The program calls for full-rate production and supply by 2007.