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American M1A1
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In the modern era, Egypt was a Soviet client for a long time, and its arsenals still contain their share of Soviet weaponry. Military assistance relations took a sharp turn for the worse in the early 1970s, and the country has used the US military aid program that accompanied the 1979 Camp David Accords to replace much of that equipment with American items. The country began a co-production program for M1 Abrams tanks in 1988, which involves kit assembly in Egypt but outsources sensitive functions like adding the M1’s special armor. To date, this program has produced 880 tanks, a total that would rise to 1,005 M1 tanks with this order.

On Aug 24/07, the US Defense Security Cooperation Agency announced [PDF format] Egypt’s request for 125 M1A1 Abrams tank kits…

Each kit includes a Commander’s Independent Thermal Viewer, Firepower Enhancement Package (substitution of the 120mm smoothbore gun for the original 105mm gun) and armor upgrades. Additional Major Defense Equipment (MDE) include 125 M256 Armament Systems (Rheinmetall 120mm guns), 125 M2 .50 caliber machine guns, 250 M204 7.62mm machine guns, and non-MDE for spare and repair parts, special tool and test equipment, personnel training and equipment, publications, U.S. Government and contractor engineering and logistics personnel services, and other related elements of logistics support. The estimated cost is $889 million [as corrected on Sept 18/07], and the prime contractor will be General Dynamics of Sterling Heights, MI.

Implementation of this proposed sale will require the assignment of up to 40 U.S. contractor representatives for up to 2 years in Egypt. The 6 U.S. Government representatives already in country who currently manage the M1A1 Abrams and M88A2 HERCULES tank recovery vehicle co-production programs will also manage this program for production and fielding.

UPDATES:

July 16/09: General Dynamics Land System Customer Service & Support in Sterling Heights, MI received a $45.4 million cost-plus-fixed-fee contract manufacturing technical assistance for Egyptian co-production Increment 10. The order Includes equipment technology list items (i.e. tools, gages, fixtures, machines, or facility items) for production of the M1A1 tanks at the Egyptian tank plant. Work is to be performed in Sterling Heights, MI with an estimated completion date of Dec 21/12. One bid was solicited, with one bid received by TACOM in Warren, MI (W56HZV-09-C-0488).

Jan 30/08: General Dynamics announces that the U.S. TACOM Lifecycle Management Command has awarded GDLS a $349 million contract for the Egyptian tank co-production program. The firm will produce parts for 125 M1A1 Abrams tank kits, as the 10th increment of the Egyptian co-production program. The parts are shipped to a production facility near Cairo, Egypt. Work on the components will be performed in Anniston, AL; Tallahassee, FF; Sterling Heights, MI; Lima, OH; and Scranton, PA. Deliveries will begin in April 2009 and continue through July 2011.

This is far less the the $889 million mentioned by the DSCA. A GDLS representative clarified somewhat, adding that “the actual firm-fixed-price value of the contract will be negotiated in the second quarter.”