Tanks For Egypt

The Pentagon wants Congress to approve a foreign military sale of 125 M1A1 Abrams tank kits and related equipment to Egypt that would cost nearly $1.33 billion, according to a recently released Defense Security Cooperation Agency statement. Further:

The Government of Egypt has requested a possible sale that includes 125 M1A1 Abrams tank kits for co-production, 125 M256 Armament Systems, 125 M2 .50 caliber machine guns, 250 M240 7.62mm machine guns, 125 AGT-1500 M1A1 series tank engines and transmissions, 120mm test cartridges, spare and repair parts, maintenance, support equipment, special tool and test equipment, personnel training and equipment, publications and technical documentation, U.S. Government and contractor engineering and logistics support services, and other related elements of logistics and program support. Articles may be provided in furtherance of a co-production agreement. The estimated cost is $1.329 billion.

This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country that has been and continues to be an important force for political stability and economic progress in the Middle East.

The additional M1A1 tanks will provide Egypt with a modern tank fleet, enhancing its capability to meet current and future threats. This will contribute to Egypt’s goal to update its military capability while further enhancing interoperability between Egypt, the U.S., and other allies. Egypt, which has co-produced the M1A1 Abrams tank, will have no difficulty absorbing the additional tanks.

The proposed sale of this equipment and support will not alter the basic military balance in the region.

The prime contractors will be General Dynamics in Sterling Heights, Michigan, Honeywell International Incorporated in Phoenix, Arizona, and Allison Transmission Motors in Indianapolis, Indiana. There are no known offset agreements proposed in connection with this potential sale. . . .

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

However, Inside the Army reported in April that the recent unrest in the Middle East could put a damper on such a sale.

Over the past year, lawmakers have become agitated over a Pentagon proposal to shut down the Abrams production line. The issue has drawn the attention of the speaker of the House, who intends to ask the Army secretary to review the decision, according to government officials. As ITA reported in April:

The Abrams is produced by General Dynamics Land Systems and hundreds of subcontractors working out of a government-owned plant in Lima, OH. But, for fiscal reasons, the Army wants to stop production of the Abrams M1A2 in 2013 and begin work again in 2016 with an upgrade effort. GDLS and its host of subcontractors have been lobbying Congress to change the Army's mind.

The companies' claim that Abrams manufacturing impacts the economies of 48 states has garnered support from many lawmakers, including House Speaker John Boehner (R-OH), whose congressional district is adjacent to where the Abrams plant is located.

"Congressman Boehner intends to ask Secretary [John] McHugh to review the Army's current plan to cut tank production and ask that the excessive costs of shutting down the Lima plant are considered," according to Brittany Bramell, the speaker's spokeswoman.

An Army study from 2008 estimates the cost of a three-to-four-year Abrams shutdown and restart would not exceed $800 million, whereas producing 70 tanks annually between fiscal year 2012 and FY-15 would cost roughly $2.1 billion, according to an April 14 statement from the Army.

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