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.