US Awards $73.5M FMS Contract to Sustain Merkava Power Packs Through 2032

$73.5 Million FMS Contract Supports Merkava Fleet Sustainment Through 2032

The U.S. Army has awarded Rolls-Royce Solutions America Inc. a $73,528,916 firm-fixed-price contract to provide Merkava tank power-pack kits, metal containers, and contractor engineering technical services for Israel under the Foreign Military Sales (FMS) program. Work will be performed in Graniteville, South Carolina, with completion scheduled for Dec. 31, 2032.

The award, issued by Army Contracting Command at Detroit Arsenal under contract W912CH-26-C-0019, is funded with fiscal 2026 FMS funds for Israel. The contract carries a cumulative face value of $462,947,478, indicating a long-term sustainment framework rather than a one-time procurement.

Scope: Full and Lite Power-Pack Kits

The contract covers “Power Pack Less Transmission” kits in both full and lite configurations. These kits exclude the transmission, which is sustained separately, but include the primary propulsion module and associated components.

Full kits are typically aligned with depot-level overhauls and major resets, while lite kits support field-level maintenance and rapid replacement of high-wear components. The inclusion of dedicated metal containers supports transport, storage, and prepositioning, enabling quicker turnaround and reduced downtime during high operational tempo.

Contractor engineering technical services are also included, providing ongoing expertise for integration, sustainment planning, and configuration management.

Propulsion as a Readiness Driver

The Merkava Mk4 and related heavy armored platforms are widely associated with the MT883-class 1,500-horsepower turbocharged V12 diesel engine. Designed for sustained heavy loads and military adaptability, the modular power pack integrates the engine, cooling systems, filtration, sensors, and ancillary components into a unit engineered for rapid replacement.

In modern armored forces, propulsion modules are critical determinants of readiness. Modular “drop-in” designs allow replacement in hours rather than days, supporting higher fleet availability rates. For Israel’s heavy tracked formations, propulsion reliability directly affects operational endurance, maneuver capacity, and recovery timelines.

The February contract follows a January notification by the Defense Security Cooperation Agency to Congress of a possible $740 million sale covering Namer armored personnel carrier power packs and related support. The parallel structure of the two efforts suggests coordinated sustainment planning across Israel’s heavy armored fleet.

Merkava Design and Modernization Context

The Merkava family forms the backbone of Israel’s heavy ground maneuver forces. Its front-engine configuration enhances crew survivability while enabling a rear compartment accessible by ramp for resupply, casualty evacuation, or limited troop transport.

The Merkava Mk4 centers on a 120 mm smoothbore main gun and integrates layered protection systems, including active protection such as Trophy. Recent modernization efforts, including the Mk4 Barak variant, emphasize upgraded sensors, AI-assisted mission systems, and helmet-mounted displays designed to improve situational awareness. Israeli officials have cited logistical enhancements intended to extend mission duration by up to 30 percent.

Such endurance gains depend on sustained propulsion availability and efficient maintenance cycles, reinforcing the strategic importance of long-horizon power-pack support.

Industrial and Strategic Dimensions

While Israel maintains domestic design authority through its Merkava and Armored Vehicles Directorate, key propulsion elements are sourced through international partnerships. The MT883/GD883 engine family is commonly paired with a Renk RK 325-class transmission, though transmissions are not included in the current award.

Executing propulsion sustainment through the U.S. FMS framework provides structured contracting oversight, financing mechanisms, and access to an established industrial base. At the same time, Israel retains integration control and modularity within its armored fleet architecture.