Indianapolis-- Senator Evan Bayh today announced that the U.S. Department of Defense has awarded a $3.8 million contract to Indianapolis-based Allison Transmission to improve the performance of the M1 Abrams tank, a key combat vehicle used by American service members fighting in Iraq and Afghanistan.

During a Friday morning visit to Allison’s Plant 14 facility, where transmissions for the Abrams tank are manufactured, Bayh thanked workers for providing critical equipment to American troops as he saluted the sacrifice of more than 3,400 brave Hoosier soldiers who began deploying to Iraq this week as part of the largest Indiana National Guard call-up since World War II.

“At a time when thousands of Hoosiers are on their way to the frontlines, it’s our solemn obligation to make sure that they can depend on their equipment in the midst of battle,” Bayh said. “The work being done at Allison is helping to ensure that our heroes risking their lives across the ocean have the world-class equipment they need and deserve.”

According to Army data, combat tank crews are driving more than 4,000 miles a year, five times the normal rate, while truck fleets are running at six times the planned mileage. The depletion of major equipment in Iraq, especially helicopters and armored Humvees, has left many military units in the United States without adequate training gear.

Congress has placed a significant emphasis on equipment replacement, reset and troop readiness. The Fiscal Year 2008 DoD Appropriations bill provides more then $140 billion for these purposes. Senator Bayh has supported the addition of $980 million in the FY08 DoD spending bill for the purpose of replacing National Guard equipment.

Allison has long been a preeminent supplier of military vehicle transmissions for both tracked and wheeled vehicles. Allison builds and supports transmissions for nearly every combat vehicle in the Army’s inventory, including the Abrams tank and the M113 (armored personnel carrier) Family of Vehicles. Allison currently employs 261 workers in its military production facility in Indianapolis, known as Plant 14.

With the new defense contract announced today, Allison will develop and integrate electronic controls into the M1 Abrams tank to improve performance and diagnostics in the field. Allison’s commercial division also produces transmissions for U.S. military wheeled vehicles, such as Mine Resistant Ambush Protected (MRAP) vehicles, which help protect our troops from deadly IED attacks.

In 2004, Bayh helped secure more than $67 million for Allison to produce transmissions for the Abrams M1A2 Battle Tank and the M113 Armored Personnel Carrier, and an additional $37 million for upgrading and repairing existing tanks, including those damaged in combat. The funds helped ensure job stability for more than 200 Hoosiers working at Plant 14, jobs that had previously been in jeopardy due to projected cuts by the U.S. military.

“Plant 14 is a national asset,” Bayh said. “For decades, Allison employees have provided the power behind almost every tracked combat vehicle in the Army’s inventory. I’m proud to have fought for this contract and prouder still of the workmanship and production quality here at Allison, which is second to none.”

“The award of this contract will allow us the opportunity to implement improvements to the M1 Abrams tank that will improve fuel economy, shift quality and further increase reliability and maintainability in the field for our troops,” said Larry Dewey, CEO of Allison Transmission. “This contract is truly a testament to the quality of work and dedication of our employees here at Plant 14.”

Senator Bayh is a member of the Senate Armed Services Committee and the Senate Select Committee on Intelligence.

Allison Transmission is headquartered in Indianapolis and employs more than 3,200 workers in Indiana.

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