US 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 supply Merkava tank power pack kits to Israel through a Foreign Military Sales agreement. The deal underscores Washington’s continued commitment to sustaining Israel’s armored combat capabilities amid ongoing regional security pressures.

Announced on February 17, 2026, by the US Department of War, the contract covers the procurement of Merkava Power Pack Less Transmission full and lite kits, metal containers, and contractor engineering technical services. The total cumulative value of the broader agreement reaches $462,947,478, with the current obligated funding tranche standing at $73,528,916 drawn from Fiscal Year 2026 Foreign Military Sales funds allocated for Israel. Work will be performed at Rolls-Royce Solutions America’s facilities in Graniteville, South Carolina, with a completion deadline of December 31, 2032.

The Role of the Merkava Power Pack

The power pack is the propulsion heart of Israel’s Merkava main battle tank, integrating the engine and associated mobility components essential for heavy armored maneuver operations. These systems are not optional upgrades but mission-critical modules that determine whether a tank can operate effectively in combat. Maintaining a reliable supply of replacement and refurbishment kits is therefore central to keeping Israel’s armored formations combat-ready over the long term. The contract is oriented toward sustainment, refurbishment, and lifecycle maintenance of existing vehicles rather than the manufacture of entirely new tanks, ensuring operational availability without expanding the overall fleet footprint.

Compatibility With the Namer Fighting Vehicle

Beyond the Merkava tank family, the same power pack architecture is compatible with Israel’s Namer infantry fighting vehicle, which is built on a modified Merkava chassis. This shared propulsion design delivers significant logistical advantages for the Israel Defense Forces, enabling common maintenance procedures, streamlined spare parts supply chains, and direct interoperability across multiple armored platforms. A single contract supporting power pack kits therefore extends its operational value well beyond the Merkava fleet alone, reinforcing the overall readiness of Israel’s mechanized ground forces.

Engineering Services Included

The contract’s inclusion of contractor engineering technical services signals that Rolls-Royce Solutions America’s role goes beyond simply delivering hardware. Ongoing technical support tied to operational use and long-term fleet maintenance is built into the agreement, reflecting the complexity of modern armored propulsion systems and the need for continuous expert involvement throughout a platform’s service life. This kind of integrated support arrangement is increasingly standard in major defense sustainment contracts, where the supplier remains actively engaged well after initial delivery.

How Foreign Military Sales Work

The contract was issued by Army Contracting Command at Detroit Arsenal, Michigan, which manages a wide portfolio of ground combat vehicle sustainment and modernization programs linked to allied defense cooperation. Foreign Military Sales agreements allow partner nations to purchase defense equipment and sustainment solutions through U.S. government acquisition channels, providing standardized contracting oversight and ensuring compatibility with American logistics and support frameworks. For Israel, using the FMS mechanism streamlines procurement while maintaining interoperability standards that matter in joint operations with US forces.

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Strategic Significance of the Deal

The scale of the broader agreement, nearly half a billion dollars, reflects the depth of the US commitment to sustaining Israel’s armored capabilities over the coming years. Merkava tanks have long been a cornerstone of Israeli ground defense strategy, and keeping them mechanically fit is a direct investment in regional deterrence. By channeling this support through a US Army contracting framework and a US-based manufacturer, the deal also reinforces American industrial involvement in allied defense sustainment at a time when maintaining robust defense supply chains has become a strategic priority. The announcement did not specify the exact number of kits to be delivered under the initial funding tranche.

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