On Tuesday, February 17, 2026, the United States Army Contracting Command (ACC) at Detroit Arsenal, Michigan, acting on behalf of the United States Department of Defense, awarded a contract valued at 73,528,916 USD for the production of key power-pack drivetrain components for Israel’s Merkava family of main battle tanks.
The order increases the cumulative value of the framework agreement to 462,947,478 USD, with completion scheduled for December 31, 2032. Work will be carried out at the contractor’s facility in Graniteville, South Carolina. Upon contract award, full funding was obligated under the Foreign Military Sales (FMS) program for Israel.
The subject of the order is described in the documentation as Merkava Power Pack Less Transmission, which effectively refers to the General Dynamics GD883 diesel engine – a licensed German MTU MT883 Ka-500/501 V12 rated at 1,500 hp (1,103 kW).
It is a liquid-cooled, multi-fuel, twin-turbocharged 12-cylinder diesel engine with a displacement of 27.4 liters and direct fuel injection, weighing approximately 1,900 kg. It represents a newer, more compact design compared to the MTU MB 873 used in Leopard 2 tanks, originating in the 1980s and initially developed, among other purposes, as an alternative to the Honeywell AGT1500 gas turbine in the M1 Abrams.
In Merkava tanks, the engine is integrated as part of the EuroPowerPack configuration, paired with hydrokinetic transmissions: Allison CD-850-6BX (Merkava Mk.1), Ashot Ashkelon (Merkava Mk.2), Renk RK 304 (Merkava Mk.3), and Renk RK 325 (Merkava Mk.4 / Mk.4M Meil Ru’ach / Mk.4 Barak).
In addition to the engines, the contract covers spare module kits, repair sets, metal transport containers, as well as contractor-provided technical and engineering support (including training, documentation, and modifications).
The engines are almost certainly intended for the latest batch of Merkava Mk.4 Barak tanks, sometimes informally referred to as Mk.5. The powerpack configuration enables a maximum speed of up to 64 km/h off-road and an operational range of up to 500 km.
The tank incorporates systems from Elbit Systems, Rafael Advanced Defense Systems, and ELTA Systems (a subsidiary of Israel Aerospace Industries). The commander is equipped with the Iron Vision helmet-mounted sight developed by Elbit Systems, integrated with a 360-degree camera and sensor suite. The system operates using STA (See Through Armor) augmented reality technology, enhancing crew situational awareness.
It works in conjunction with an upgraded fire control system featuring advanced day/night observation capabilities and the hard-kill Trophy HV active protection system equipped with WindGuard radars, designed to intercept anti-tank guided missiles and, in its latest modified version, FPV drones. The Barak variant features new sights for both the commander and gunner, along with enhanced capabilities for continuous intelligence data collection, fusion, and dissemination.
The tanks are networked through advanced E-LynX SDR programmable radios (Software-Defined Radio), while crews operate touchscreen displays resembling smartphones, supported by dedicated applications with intuitive interfaces. Although exact specifications remain undisclosed, the combat weight is estimated at approximately 70 tons, with the primary armament remaining the 120 mm IMI MG251-LR smoothbore gun.
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