August 13, 2009 (FinancialWire) — Honeywell (NYSE: HON) said it has been awarded an additional option year on a contract from the U.S. Army to improve performance and extend the life of the AGT1500 turbine engine that powers the M1 Abrams tactical vehicle. The company said that the value of the contract increase could exceed $300 million.

The extra year options covers supply chain management, engineering support and engine durability improvement services. The option has a not-to-exceed value of more than $300 million, bringing the total contract value to more than $1.4 billion.

Honeywell is working under the contract to provide parts, engineering, depot and field support services, enabling the U.S. Army to reset and maintain around 750 engines. The scope of work includes critical field support services at U.S. military bases and in South Korea and Germany.

Morris Township, New Jersey-based Honeywell International offers aerospace products and services, control technologies for buildings, homes and industry, automotive products, turbochargers and specialty materials.

The company’s Phoenix, Arizona-based aerospace business is a provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

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