U.S. Army signs $73.5M deal for Merkava propulsion systems

The United States Army has awarded Rolls-Royce Solutions America Inc. a $73.5 million contract to procure Merkava tank power pack kits and related engineering services under a Foreign Military Sales (FMS) agreement supporting Israel, according to a Feb. 17, 2026 contract announcement released by the U.S. Department of War.

The contract covers the delivery of Merkava Power Pack Less Transmission full and lite kits, metal containers, and contractor engineering technical services.

The total cumulative face value of the broader agreement reaches $462,947,478. Work will be carried out in Graniteville, South Carolina, with completion scheduled for Dec. 31, 2032. Fiscal Year 2026 Foreign Military Sales funds allocated for Israel, totaling $73,528,916, were obligated at the time of the award, the Department of War said.

The contract was issued by Army Contracting Command at Detroit Arsenal, Michigan, which manages a range of ground combat vehicle sustainment and modernization programs tied to allied defense cooperation initiatives.

The Merkava power pack is a critical propulsion module used in Israel’s Merkava main battle tanks, integrating the engine and associated mobility components required for heavy armored maneuver operations. These systems are central to maintaining operational readiness and long-term sustainment of Israel’s armored forces.

In addition to the Merkava tank family, the same power pack architecture is compatible with Israel’s Namer infantry fighting vehicle, which is based on a modified Merkava chassis. The shared propulsion design allows common maintenance procedures, streamlined logistics, and parts interoperability across multiple armored platforms operated by the Israel Defense Forces.

Power pack kits delivered under the contract are expected to support sustainment, refurbishment, and lifecycle maintenance requirements rather than the production of entirely new vehicles, ensuring continued operational availability of existing armored formations.

Rolls-Royce Solutions America will perform contract work at its facilities in Graniteville, South Carolina, where the company supports military propulsion and power-generation programs. The inclusion of engineering technical services indicates ongoing integration and sustainment support tied to operational use and long-term fleet maintenance.

Foreign Military Sales contracts administered through the U.S. Army enable allied nations to procure defense equipment and sustainment solutions through U.S. acquisition channels, providing standardized contracting oversight and ensuring compatibility with U.S. logistics and support frameworks.

The announcement did not specify quantities of individual kits to be delivered under the initial obligated funding tranche.