Astec — Road paving and construction equipment

Sourcewell, a Minnesota-based local government unit and service cooperative, has established a master agreement with Astec Industries, Inc. for the provision of roadway paving and construction equipment. This cooperative purchasing solution is designed for use by governmental, educational, nonprofit, and tribal agencies across the United States and Canada. The scope of the agreement includes turn-key solutions for asphalt pavers, rollers, cold planers, and concrete mixers, ensuring that all equipment is delivered in new, current-model, and fully operational condition. The contract is effective for an initial term of four years, starting approximately April 1, 2026, with the possibility of extensions up to a total of seven years. Under the terms of the agreement, Astec provides participating agencies with a 10.5% discount on all base units and options, and a specific 8% discount for horizontal grinders. The award was determined through a trade-off process based on a 1,000-point scoring system, where pricing was the most significant factor at 400 points, followed by the depth and breadth of solutions, delivery capabilities, marketing plans, and value-added attributes. All equipment must comply with current safety and regulatory standards and be supported by industry-standard warranties and a broad geographic sales and service network. While the contract functions as an indefinite quantity vehicle, Sourcewell estimates an annual transaction value of approximately 60 million USD.