The Army TACOM Lifecycle Management Command awarded General Dynamics [GD] Land Systems $72.7 million under an existing contract to upgrade 12 M1A1 Abrams tanks to the M1A2 Systems Enhancement Package (SEP) V2 configuration.
The M1A2 SEP V2 is the most technologically advanced digital tank that includes improved color displays, day and night thermal sights, commander remote operated weapon station (CROWS II), a Thermal Management System (TMS) and a tank-infantry phone, the company said in a Feb. 3 statement.
This contract is a portion of the $181 million Congress added to the fiscal year 2013 defense bill for the Abrams upgrades. In August, Army Secretary John McHugh wrote congressional defense commitees that the service has no need for additional M1A2 SEP V2 tatnks, but the production “does contribute to the mitigation of of risk to our industrial base.”
The work will continue production another year, through December 2015, McHugh wrote, and provide “significant work for critical and fragile suppliers.”
The funds will buy tanks, transmissions and second generation forward looking infrared sensors.
The M1A2 SEP V2 maximizes the fighting ability of the tank on today’s battlefield while preparing the platform for tomorrow’s challenges. It can accommodate future technology upgrades.
“We are studying with the Army the best schedule for procurement of these tanks and use of the FY 2014 appropriation of $90 million to efficiently retain skills in the industrial base in keeping with the Congress’ intent,” said Peter Keating, director of communications, General Dynamics Land Systems.
The original multi-year contract was awarded in February 2008, which authorized the upgrade of 435 M1A1 tanks that have been in the Army’s inventory for more than 20 years (
Defense Daily, March 6, 2008).
The multi-year contract was expected to save the Army some $68.3, with another $50 million coming from bundling parts from other Abrams contracts, which results in savings from economies of scale. Overall, the service was expected to save more than $110 million.
General Dynamics continues the conversion of the active component tanks to the M1A2 SEP V2 configuration.
Production will be performed by existing employees in Anniston, Ala.; Tallahassee, Fla.; Sterling Heights, Mich.; Lima, Ohio; and Scranton, Pa. It is expected to be completed by Dec. 31, 2015.