DETROIT, : The United States Army has awarded Rolls-Royce Solutions America Inc. a $73,528,916 firm-fixed-price contract to provide propulsion units and associated engineering services in support of Israel’s armored vehicle fleet. The award, executed under the U.S. Foreign Military Sales (FMS) program, forms part of a broader sustainment arrangement with a cumulative ceiling value of $462,947,478.
The contract was issued by the U.S. Army Contracting Command at Detroit Arsenal, Michigan, and is identified under reference number W912CH-26-C-0019. Fiscal Year 2026 Foreign Military Sales funds designated for Israel were obligated at the time of award. The estimated completion date for all work under the extended agreement is December 31, 2032.
Contract Scope and Financial Structure
The $73.5 million award represents a component of a larger multi-year sustainment framework valued at nearly $463 million. The agreement is structured as a firm-fixed-price contract, meaning pricing terms are established at the outset and are not subject to adjustment based on cost fluctuations.
The procurement covers both hardware and technical services required to support Israel’s heavy armored maneuver units. The hardware component includes Merkava Power Pack Less Transmission (NPPLT) units supplied in both “full” and “lite” configurations. The contract also provides secure metal shipping containers designed for transportation and storage of the propulsion systems.
In addition to equipment delivery, the agreement includes ongoing contractor engineering and technical services. These services support depot-level maintenance, refurbishment, system integration, and lifecycle sustainment activities associated with the propulsion units.
Platforms Supported
The propulsion systems supplied under the contract are intended to sustain two primary armored platforms operated by the Israel Defense Forces (IDF):
Merkava Main Battle Tank: Israel’s principal heavy battle tank platform relies on modular power packs that integrate engine and mobility components into a unified system. The NPPLT units are designed to maintain operational readiness across active armored formations.
Namer Infantry Fighting Vehicle (IFV) / Armored Personnel Carrier (APC): The Namer platform is constructed on a modified Merkava chassis. Because both platforms share a common propulsion architecture, the interchangeable power pack design supports maintenance standardization, logistics efficiency, and parts interoperability.
The current procurement is designated for sustainment, refurbishment, and lifecycle maintenance of existing operational fleets. It does not include the production of newly manufactured armored vehicles.
Industrial and Production Details
Rolls-Royce Solutions America Inc., headquartered in Novi, Michigan, serves as the prime contractor for the agreement. Manufacturing, assembly, and engineering activities associated with the contract will be conducted at the company’s facilities in Graniteville, South Carolina.
Work under the contract will include production of propulsion units, configuration management, technical support, depot-level engineering assistance, and integration services aligned with IDF operational requirements.
Foreign Military Sales Framework
The award was processed through the U.S. Army acquisition system under the Foreign Military Sales (FMS) program. The FMS framework enables partner nations to procure U.S.-managed defense articles and services through standardized contracting mechanisms. Under this structure, the U.S. government manages contract execution, financial oversight, and compliance procedures on behalf of the purchasing government.
By utilizing U.S. Army contracting channels, the sustainment program maintains compatibility with U.S. logistical standards, acquisition oversight protocols, and lifecycle support practices.
The agreement extends through the end of 2032, covering multi-year sustainment requirements for Israel’s existing armored vehicle propulsion systems under the defined financial ceiling.
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