Cleveland-Cliffs Steel Corp. has been awarded a $400 million contract by the U.S. Department of War to supply grain oriented electrical steel, the Defense Logistics Agency announced today. The award is structured as an indefinite-delivery/indefinite-quantity (IDIQ) contract that spans five years and carries a performance completion date of Sept. 8, 2030. The contract includes no option periods.
The West Chester, Ohio-based steelmaker received the contract through a sole-source acquisition, invoked under the statutory justification of 10 U.S. Code 3204 (a)(3)(A) and implemented through Federal Acquisition Regulation 6.103-3 (b)(1). The Defense Logistics Agency Contracting Services Office, Ohio, is the contracting activity and the award is listed under contract number SP8000-25-D-0008.
The specialized steel covered by the contract - grain oriented electrical steel - is used in electrical equipment and transformers. The Defense Logistics Agency said the material will be delivered for use by the Army, Marine Corps, Navy, Air Force, and Space Force. Funding for the work is drawn from transaction funds allocated across fiscal years 2025 through 2029.
Cleveland-Cliffs operates steel production facilities across the United States and will supply the material under the terms laid out in the IDIQ contract. As an IDIQ vehicle, the agreement establishes the framework and ceiling value - $400 million - while the specific quantities, schedules and delivery orders will be issued as required throughout the five-year period, up to the performance completion date of Sept. 8, 2030.
The contract documentation identifies the sole-source route and the precise regulatory authorities invoked to justify that acquisition approach. The contracting activity is the Defense Logistics Agency Contracting Services Office, Ohio, which appears on the award with contract number SP8000-25-D-0008.
Key context included in the award notice:
- The award is an IDIQ contract valued at $400 million and runs for five years.
- Funding for deliveries will come from fiscal 2025 through 2029 transaction funds.
- The material specified is grain oriented electrical steel, intended for electrical equipment and transformers used by all five U.S. military services named in the notice.