Allison Transmission logo. Allison receives a $97 million Army contract to provide new and upgraded transmissions for Abrams.

Allison Transmission Secures $97M Army Contract for Abrams Tank Production Support

The U.S. Army has awarded Allison Transmission a $97 million contract to supply new and upgraded transmissions, transmission kits and related technical support for the Abrams main battle tank program.

Long-Term Partner in Abrams Modernization

Allison’s X1100 cross-drive transmission has been a core component of the Abrams platform since its introduction, combining steering, braking and gear shifting functions into a single compact unit, according to a press release published Monday. The transmission’s design supports high torque output and long-term maintainability — capabilities that remain central to current Abrams modernization and sustainment programs.

“Allison has been an integral part of the Abrams program from the beginning,” said Dana Pittard, vice president for defense programs at Allison Transmission. “From its 1970s origins to today’s advanced variants, our transmissions have enabled the Abrams to maneuver with precision and resilience in the world’s most demanding environments, when failure is not an option.

Under the contract, Allison will continue to provide propulsion systems and engineering support as the Army advances its next production phases for the Abrams fleet. The company’s work ensures the continued delivery and readiness of drivetrain components essential to the Army’s armored vehicle operations worldwide.

The new award increases the base contract’s cumulative value to $277.7 million, according to a Department of Defense announcement. Work will be carried out at Allison’s Indiana facility under a firm-fixed-price arrangement.

Funding and Contract Oversight

Funding for the effort draws from several Army accounts, including fiscal 2024 and 2025 procurement appropriations, Army working capital funds and foreign military sales resources for Poland and Romania. The Army Contracting Command – Detroit Arsenal, Michigan, is managing the acquisition. The contract was solicited through the internet, with one proposal received.

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