General Dynamics Land Systems (GDLS) is renegotiating a 2011 contract with Israel that will likely include penalties due to budget-driven cuts in the number of heavy troop carrier kits Israel agreed to buy from the firm.

The Sterling, Mich.-based firm beat out BAE Systems and Textron Marine and Land Systems in October 2010 for rights to build chassis and main components for several hundred Namers, a heavy troop carrier based on Israel’s indigenous Merkava Mk4 main battle tank.

Under the eight-year deal, GDLS committed to delivering kits for some 386 vehicles through 2019 at a per-unit cost of approximately $730,000 based on full-rate production of 60 vehicles per year. […]