# Department of War Awards Multi-Billion Dollar Defense Contracts

The U.S. Department of War announced multiple high-value contract awards across its military branches and defense agencies on September 14, 2026. These contracts include a **$2.5 billion** agreement to enhance the AGT 1500 gas turbine engine for the M1 Abrams tank fleet, a **$1.2 billion** indefinite-delivery/indefinite-quantity (IDIQ) contract for the Precision Strike Missile Increment 2 Early Operational Capability, and a **$1.05 billion** firm-fixed-price contract for facility sustainment, renovations, and repairs involving multiple small business contractors. These awards span advanced weapon systems development, construction, sustainment, and IT services, with performance periods extending through 2031 and beyond.

- **Why this matters:** These contracts represent significant procurement opportunities for defense manufacturers, construction firms, and technology service providers supporting Army, Navy, Air Force, and defense logistics operations.
- The involvement of multiple contracting commands such as Army Contracting Command (ACC), Army Mission and Installation Contracting Command (MICC), and Naval Air Systems Command (NAVAIR) indicates diverse sourcing needs across platforms and infrastructure.
- Companies specializing in gas turbine engine enhancements, missile systems, and military facility sustainment should evaluate these contracts for subcontracting or prime award potential.
- The scale and duration of these contracts suggest long-term engagement opportunities for contractors aligned with Department of War modernization and sustainment priorities.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Physical Infrastructure
**Published:** September 15, 2026

### Government Entities
- Army Contracting Command (ACC)
- Army Mission and Installation Contracting Command (MICC)
- U.S. Army Corps of Engineers (USACE)
- Naval Air Systems Command (NAVAIR)
- Naval Supply Systems Command Fleet Logistics Center Norfolk (NAVSUP FLC Norfolk)

### Vendors
- National Advanced Mobility Consortium Inc. (awardee)
- Lockheed Martin Corp. (awardee)
- BAE Systems Land & Armaments LP (awardee)
- Hensel Phelps Construction Co. (awardee)
- JFL Consulting LLC (awardee)

### Sources
- [
	Contracts for Sept. 14, 2026 > U.S. Department of War > Contract | U.S. Department of War
](https://www.war.gov/News/Contracts/Contract/Article/4600826/contracts-for-sept-14-2026) - U.S. Department of War (.gov)