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The U.S. Army has awarded Honeywell a third option year of a contract to improve performance and extend the life of the AGT1500 turbine engine that powers the M1 Abrams tank. The option year is valued at $311 million, bringing the total contract value to more than $1 billion.

To date, the Army has avoided more than 475 engine 'returns to depot' because Honeywell and field service engineers have successfully repaired the engines at field level in repair shops. For engines returned to depot, the post-overhaul engine acceptance test rate has improved by more than 40 percent. At the same time, 21 design changes that have been made to improve the engine's durability are in development, testing or implementation.

Honeywell is working with the Army's heavy brigade combat team and Anniston Army Depot under the contract to provide parts, enabling the overhaul of approximately 1000 engines. The scope of work includes field support services at U.S. military bases and in Kuwait, South Korea and Germany.