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State Department OKs $1.68B Heavy Armored Combat System Sale to Australia

The State Department has cleared Australia’s request to buy heavy armored combat systems, related equipment and services through a potential $1.685 billion foreign military sales agreement.

The proposed FMS deal includes M1A2 SEPv3 Abrams main battle tanks, M1150 Assault Breacher Vehicles, M1074 Joint Assault Bridges and M88A2 Hercules combat recovery vehicles, the Defense Security Cooperation Agency said Thursday.

General Dynamics’ (NYSE: GD) land systems business, BAE Systems, Leonardo DRS and Honeywell’s (NYSE: HON) aerospace business will serve as principal contractors in the sale, which will help Australia counter regional threats and improve homeland defense.

The transaction also covers AGT1500 gas turbine engines, Driver’s Vision Enhancer, Common Remotely Operated Weapon Station Low Profile, ground support equipment, system and engine spare parts, technical data, modification work orders/engineering change proposals, government and contractor technical and logistics assistance, program management, quality assurance teams and transportation services. It will also require the deployment of about 10 contractor personnel to Australia.

DSCA said it informed Congress of the possible deal Thursday.

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