2006 Saudi Shopping Spree: $2.9B to Upgrade Their M1 Tank Fleet
December 21/16: General Dynamics has been awarded 
an $82 million contract to convert M1A2 tanks to the M1A2S configuration for the US Army. The M1A2S is a specialized configuration for tanks operated by the government of Saudi Arabia. GD design and manufacture the vehicles in the US, which are then sold to the kingdom through foreign military sales agreements.
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In July 2006 the US DSCA informed Congress [PDF] that the government of Saudi Arabia wished to purchase 58 M1A1 Abrams tanks, then upgrade these M1A1s, along with its existing 315 M1A2s, to create 373 M1A2S (Saudi) Abrams configuration main battle tanks. The sale will include kits, spare and repair parts, communications and support equipment, publications and technical data, personnel training and training equipment, contractor engineering and technical support services and other related elements of logistics support. The estimated cost is $2.9 billion.
This program also dovetails well with ongoing Cooperative Logistics Supply Support Agreement, which ensure support and spare parts for their American-made land equipment. This sale and upgrade program will be executed in 3 phases, and is well underway.
M1A2S Program: Phases and Plans
The 3 phases for the main program are as follows:
- PHASE 1: Engineering phase for 30 months;
- PHASE 2: Purchase of 58 M1A1s, and upgrade to M1A2S (Saudi) configuration. The Abrams Integrated Management (AIM) program was designed to economically rebuild and maintain the M1A1 Main Battle Tank (MBT) to a ‘like new’ condition, in order to improve fleet readiness and reduce sustainment costs. The 58 M1A1s will undergo an ‘AIM-like’ process and will be upgraded to the M1A2S configuration in the United States;
- PHASE 3: Tear down of the 315 M1A2 Abrams in Saudi Arabia’s tank fleet and upgrade to the M1A2S configuration. The 315 Saudi M1A2A MBT’s will also undergo an ‘AIM-like’ process and will be re-configured to the M1A2S configuration. Vehicle teardown and final re-assembly will be accomplished in Saudi Arabia.
Saudi Arabia has an unusual land forces structure whereby it has an “American brigade” (8th Armored Brigade) currently armed with US equipment like M1 Abrams tanks, M2 Bradleys et. al., and a “French brigade” (4th Armored Brigade) armed with French equipment including AMX-30 tanks, AMX-10P APCs, et. al. Indeed, Saudi equipment throughout its land forces tends to be a mixture of American and French equipment as a rule. This hedges against supplier continuity and creates wider markers for geopolitical favors, at the cost of increased maintenance burdens and potential logistical and interoperability headaches. The Tribune-Libanaise’s 2006 article “The Dynamics of Weapons Procurement in Gulf States” offers outstanding insight and background in this area.
There were rumors that the 2006 memorandum of defense cooperation with France may also lead to an order of Leclerc main battle tanks etc., to upgrade the “French brigade” alongside its American counterpart. There has been no action on that front, but there have been countervailing rumors of a deal for Russian T-90s.
Contracts and Key Events
Unless otherwise noted, General Dynamics Land Systems in Sterling Heights, MI executes these contracts, while the U.S. Army Tank and Automotive Command in Warren, MI manages the contract on behalf of its Foreign Military Sale client in Saudi Arabia.
2016
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December 21/16: General Dynamics has been awarded an $82 million contract to convert M1A2 tanks to the M1A2S configuration for the US Army. The M1A2S is a specialized configuration for tanks operated by the government of Saudi Arabia. GD design and manufacture the vehicles in the US, which are then sold to the kingdom through foreign military sales agreements.
2011-2013
Sept 18/13: +84. General Dynamics Land Systems in Sterling Heights, MI receives an $187.6 million firm-fixed-price contract to convert 84 tanks to M1A2S configuration.
Under this sole-source arrangement, 44 M1A1s and 40 M1A2 Abrams tanks will be converted in Lima, OH and Sterling, MI. U.S. Army Contracting Command – Tank and Automotive in Warren, MI acts as the Saudis’ agent (W56HZV-13-C-0315).
July 12/13: Bigger opportunity? Handelsblatt reports that the Saudis are reconsidering their planned German Leopard 2A7 tank buy. Slow German approval, and a range of opposition that includes both opposition politicians and elements within KMW itself, are raising the proposed deal’s risk profile. When those hindrances are added to the fact that German firms would have to build the support infrastructure they would need in Saudi Arabia from the ground up, the entire 270-tank buy is reportedly looking less attractive.
Handelsblatt says that American M1 tanks are the Saudis’ preferred alternative, which would make sense if the Saudis limit their goals to a swap-out of their old M60 tanks. The M1A2S is already serving in the Royal Saudi Land Forces, and the industrial slowdown in GDLS’ Lima, OH plant makes this a good time to negotiate. Handelsblatt [in German].
March 25/13: General Dynamics Land Systems in Sterling Heights, MI receives a $39.1 million firm-fixed-price contract modification, to convert more M1A2 tanks to M1A2S configuration for Saudi Arabia. Saudi contracts have become very important as GDLS tries to keep the plant open in the face of near-zero demand from the US Army.
Work will be performed in Lima, OH with an estimated completion date of Jan 31/14. One bid was solicited, with 1 bid received by US Army Contracting Command in Warren, MI (W56HZV-11-C-0350). See also Lima News.
Jan 3/13: General Dynamic Land Systems in Sterling Heights, MI receives a $132.7 million contract for “services in support of M1A2S Abrams Tank production for Foreign Military Sales.” GDLS has confirmed that this contract covers 69 tanks.
Work will be performed in Lima, OH, with an estimated completion date of July 31/14. One bid was solicited, with one bid received (W56HZV-13-C-0104).
April 12/12: US Army sheds light. The US Army throws a bit of light on a program that has been short of details, as it announces that Anniston Army Depot had contracted to overhaul 143 Saudi M1 Abrams tanks to M1A2S standard, through a partnership with General Dynamics Land Systems. It extends a previous GDLS partnership that began in early 2011, when the depot assisted in upgrading 57 M1A1 and M1A2 tanks to the M1A2S variant.
Once structural repairs are complete, the hulls, turrets and components will be shipped from Alabama to Lima, OH, where the tanks will be assembled by General Dynamics Land Systems.
That brings the total number of M1A2S tanks under the agreement to 200, and an additional 129 tanks are awaiting funding. Work will take place at Lima Army Tank Plant, OH, where 326,000 direct labor hours are expected for the installation through this program. Anniston Army Depot employees will disassemble and sandblast the vehicles, then perform needed repairs to the hulls and turrets. They’ll also play a key role in refurbishing components for the vehicles by rebuilding the Gunner’s Primary Sight assembly, computer control panel, elevating mechanism assembly, gunner’s control assembly, and other parts for each tank. US Army.
April 9/12: A $12.1 million cost contract modification buying M1A2S long lead materials. Work will be performed in Lima, OH, with an estimated completion date of Nov 30/12. One bid was solicited, with one bid received (W56HZV-11-C-0350).
March 2/12: An $11.1 million cost contract modification buying M1A2S long lead materials. Work will be performed in Lima, OH, with an estimated completion date of Nov 30/12. One bid was solicited, with one bid received (W56HZV-11-C-0350).
March 2/12: An $8 million firm-fixed-price contract modification to convert M1A2S tanks. Work will be performed in Lima, OH, with an estimated completion date of May 30/12. One bid was solicited, with one bid received (W56HZV-11-C-0005).
Jan 5/12: Lockheed Martin Global Training and Logistics in Orlando, FL receives an $8.2 million firm-fixed-price contract to upgrade Saudi Advanced Gunnery Training System configurations to the M1A2S standard.
Work will be performed in Orlando, FL, and Tabuk, Saudi Arabia, with an estimated completion date of Feb 28/14. One bid was solicited, with one bid received by the US Army Program Executive Office for Simulation, Training and Instrumentation Acquisition Center in Orlando, FL, who acts as Saudi Arabia’s agent in this matter (W900KK-12-C-0008).
Jan 5/12: An $11.8 million cost contract modification “to increase foreign military sales funding.” No further details are given, but the contract number corresponds to Saudi M1A2S upgrades. Work will be performed in Lima, OH, with an estimated completion date of Nov 30/12. One bid was solicited, with 1 bid received by the US Army Contracting Command in Warren, MI (W56HZV-11-C-0350).
Nov 10/11: Mistaken announcement. A $6.9 million cost-no-fee contract for kits to convert M1A2 tanks to Saudi Arabia’s M1A2S configuration. Work will be performed in Oxford, AL, with an estimated completion date of Nov 30/12. One bid was solicited, with one bid received (W56HZV-11-C-0350).
Discussions with GDLS reveal that despite the Pentagon announcement, this isn’t a contract yet.
Aug 11/11: A $29.75 million cost-no-fee contract for kit delivery and associated labor supporting production and conversion of 60 M1A2 tanks to Saudi Arabia’s M1A2S configuration. Work will be performed in Lima, OH until Aug 30/12. One bid was solicited, with one bid received (W56HZV-11-C-0350).
Aug 9/11: A $12.6 million cost-no-fee contract for kit delivery and associated labor supporting production and conversion of 42 more M1A2 tanks to Saudi Arabia’s M1A2S configuration. Work will be performed in Lima, OH, with an estimated completion date of Sept 30/12. One bid was solicited, with one bid received (W56HZV-11-C-0005).
Jan 4/11: A $6.9 million cost-no-fee contract will provide tools and equipment to help set up a production facility in Saudi Arabia for converting M1 Abrams tanks to the M1A2S configuration. Work will be performed in Sterling Heights, MI, with an estimated completion date of Aug 1/12. One bid was solicited with one bid received (W56HZV-10-C-0160).
Jan 4/11: A $37.1 million cost-no-fee contract for materials and labor to convert 42 M1A2 tanks to Saudi Arabia’s M1A2S configuration. Work will be performed in Lima, OH, with an estimated completion date of Sept 30/12. One bid was solicited with one bid received (W56HZV-11-C-0005).
2006 – 2010
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Dec 3/10: A $19 million firm-fixed-price contract to incorporate the unique materials and labor required for the conversion of 15 Kingdom of Saudi Arabia (KSA) M1A1 to M1A2S tanks.
Work will be performed in Lima, OH with an estimated completion date of March 3/12. One bid was solicited with one bid received (W56HZV-10-C-0002).
Dec 8/09: A $17.6 million firm-fixed-price contract for 1 lot of common and long lead components to support the conversion of 15 M1A2 tanks to M1A2S tanks for the Kingdom of Saudi Arabia. Work is to be performed at the Lima Army Tank Plant in Lima, OH, with an estimated completion date of March 31/12. One bid was solicited and one bid received by the U.S. Army Tank and Automotive Command in Warren, MI (W56HZV-10-C-0002).
According to GDLS, this is a separate order from the process initiated by the July 2006 DSCA request, which is currently in Phase 2 and expects to deliver M1A2S tanks in 2010. It is not even a Foreign Military Sale; technically, it’s a US Army order that will convert 15 of the US Army’s M1A2s, whereupon they will be conveyed to Saudi Arabia.
Sept 18/09: A $7.2 million cost-plus-fixed-fee contract to support Saudi Arabia’s M1A2S Abrams tank conversion. Work is to be performed in Warren, MI with an estimated completion date of Feb 28/12. One bid was solicited with one bid received by US Army TACOM in Warren, MI (W56HZV-09-C-0095).
Nov 4/08: A $58.3 million cost plus fixed price contract to convert M1A2 Abrams tanks into Saudi M1A2S configuration. Work will be performed in Sterling Heights, MI, with an estimated completion date of Dec 31/10. One bid was solicited and one bid was received, by US Army TACOM in Warren, MI (W56HZV-09-C-0095).
This appears to be the Phase 2 contract. General Dynamics’ release describes the final product as “a hybrid configuration of the M1A1, M1A2 and M1A2 System Enhancement Package (SEP) tank variants for the Kingdom of Saudi Arabia.” It adds:
“Related contracts are expected to be awarded through FMS under the multiphase Royal Saudi Land Forces M1A2S program that will fund additional engineering work, production and modification to vehicles, and plant retooling.”
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July 28/06: US DSCA announcement. The DSCA also reviews past US weapons land weapon sales to Saudi Arabia, noting that (links are DID’s):
“We previously notified transmittal number 90-07 to Congress on 2 December 1989 of the possible sale of 315 M1A2A Abrams tanks, with ancillary weapons and equipment, 30 M88A1 recovery vehicles, 175 M998 [HMMWV jeep] utility trucks, other trucks, ammunition, and full logistics support for an estimated value of $725 million.
Transmittal number 90-78 was notified to Congress on 27 October 1990 for the possible sale of 150 M1A2 tanks, 200 Bradley Fighting Vehicle Family Systems (including TOW versions and 1,750 TOW IIA Missiles), 207 M113 Armored Personnel Carrier Family Vehicles, [including] 50 M548 Cargo Carriers; 17 M88A1 [Recovery Vehicles and] 43 M578 Recovery Vehicles, ammunition, and full logistics support for an estimated value of $3.2 billion.”
General Dynamics Land Systems of Sterling Heights, MI will be the prime contractor. There are no known offset agreements proposed in connection with this potential sale, and implementation of this proposed sale will require the assignment of U.S. Government and contractor representatives to Saudi Arabia for up to 8 years. The exact number of representatives will be established during program definition between representatives of the United States Government and the purchaser.
