- â–º $73,528,916 firm fixed price Merkava Power Pack contract awarded to Rolls-Royce Solutions America.
- â–º Supports Israel under Fiscal Year 2026 Foreign Military Sales funding.
- â–º Includes full and lite power pack kits, metal containers, and engineering technical services.
- â–º Work to be performed in Graniteville, South Carolina, through December 31, 2032.
- â–º Total cumulative program face value reaches $462,947,478.
US Awards $73.5M Merkava Power Pack Contract To Rolls-Royce Solutions America For Israel
The US Department of Defense has awarded a $73,528,916 Merkava Power Pack contract to Rolls-Royce Solutions America Inc., Novi, Michigan, for Israel under the Foreign Military Sales program.
According to the official contract announcement, the firm fixed price award covers the procurement 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 program stands at $462,947,478.
The contract was issued by Army Contracting Command, Detroit Arsenal, Michigan.
Contract Scope And Funding Details
The $73.5 million award supports Israel’s Merkava armored vehicle fleet through the provision of power pack components and associated technical services. Work will be performed in Graniteville, South Carolina, with an estimated completion date of December 31, 2032.
Fiscal Year 2026 Foreign Military Sales funds for Israel in the full amount of $73,528,916 were obligated at the time of award, meaning the contract is fully funded from the outset.
The contracting activity is identified as Army Contracting Command, Detroit Arsenal, under contract number W912CH-26-C-0019.
Supporting Israel’s Merkava Fleet
The Merkava Power Pack contract directly supports sustainment and operational readiness of Israel’s domestically produced Merkava main battle tanks. The Merkava series, developed by Israel, is designed for survivability, mobility, and rapid battlefield repair.
The power pack forms a critical subsystem within armored platforms, integrating engine and related components necessary for propulsion and battlefield maneuverability. Sustaining these systems is central to maintaining armored force readiness.
Through the Foreign Military Sales framework, the United States facilitates procurement of US-origin defense equipment and services for allied nations. Israel remains one of the largest and most consistent FMS partners.
Industrial Base And Long-Term Sustainment
The award highlights the continued role of US industry in supporting allied armored vehicle fleets. Production and services under the contract will take place in Graniteville, South Carolina, reinforcing the US defense industrial base while fulfilling allied requirements.
The broader cumulative ceiling value of $462.9 million indicates this is part of a larger, multi-year sustainment effort tied to Israel’s armored vehicle programs.
The Merkava Power Pack contract structure as firm fixed price provides cost certainty to the government, while the long period of performance through 2032 reflects the long-term sustainment nature of the effort.
US-Israel Defense Cooperation
The award underscores the depth of US-Israel defense cooperation, particularly in ground combat systems sustainment. Under the Foreign Military Sales system, the US government acts as the intermediary, managing procurement, contracting, and delivery.
Israel’s armored forces rely heavily on the Merkava platform as a core component of its ground maneuver capability. Sustainment contracts such as this ensure continued operational availability and lifecycle support.
While the Department of Defense did not provide additional technical details regarding quantities of kits or specific variants supported, the contract documentation confirms engineering technical services are included, suggesting ongoing technical assistance and integration support.
Why This Contract Matters
The Merkava Power Pack contract reflects the ongoing focus on sustainment rather than new platform acquisition. For armored forces, propulsion systems are among the most maintenance intensive components. Ensuring steady supply of kits and engineering services reduces downtime and supports operational readiness.
For US industry, the award reinforces the role of American companies in providing long term lifecycle support to allied armored fleets. For Israel, it ensures continued access to critical propulsion subsystems under a structured, government managed procurement process.
As geopolitical tensions remain high across the Middle East, armored mobility and readiness remain core to ground force deterrence and operational planning.
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