American Rheinmetall Wins $18.9 Million Army Track Shoe Contract
Loc Performance Products, operating as American Rheinmetall, secured a firm-fixed-price award for vehicular track shoes after beating eight rivals, the Defense Logistics Agency said.
PLYMOUTH, MICHIGAN — American Rheinmetall won an $18.9 million Army contract for vehicular track shoes, extending the reach of a German-owned supplier deep inside the U.S. defense industrial base.
The firm-fixed-price award went to Loc Performance Products LLC, doing business as American Rheinmetall, of Plymouth, Michigan, a full-service maker of driveline, suspension and track systems founded in 1971. The one-year base contract carries one one-year option, with an ordering period ending Aug. 5, 2027, as announced on war.gov. The deal drew nine responses in a competitive acquisition, and the Army will fund it through fiscal 2026 working capital funds, the Defense Logistics Agency Weapons Support activity in Warren, Michigan, said in the notice posted August 5, 2026 at 5:00 PM ET.
“They are both an original equipment manufacturer and prime to the government on very important land systems programs,” said Stephen Hedger, chief executive officer of American Rheinmetall Vehicles, in comments to Defense News about the parent company’s Michigan supplier according to defensenews.com.
Track shoes are the individual segments that link together to form the continuous tracks on armored vehicles, and steady resupply keeps Army fleets moving. The contract feeds a company that already serves as the original equipment manufacturer for most military ground vehicle track systems in U.S. service according to euro-sd.com.
The award marks the second contract to Loc Performance in 2026, lifting the company’s total for the year to $33.5 million, according to firestore contract records. It stands well below the company’s largest award on record of $153.3 million. Within the Defense Logistics Agency, the sum lands between the 2026 portfolio’s year-to-date minimum of $9 million and a maximum of $1.5 billion. The award was one of five Department of Defense contracts issued nationwide that day, and the 25th defense contract awarded in Michigan during 2026.
The winner benefits from parentage that reaches across the Atlantic. Rheinmetall AG, the Düsseldorf-based technology group and one of Europe’s largest defense manufacturers, completed its takeover of Loc Performance on November 29, 2024, at an enterprise value of $950 million according to rheinmetall.com. The purchase added more than 1,000 employees and roughly 2 million square feet of manufacturing space across three Michigan sites and one in St. Marys, Ohio according to defensenews.com.
For the average reader, the contract signals where tax dollars flow and how foreign ownership now sits inside American weapons supply chains. American Rheinmetall Vehicles operates under a foreign ownership, control or influence mitigation agreement that clears it to work as a U.S.-based company according to defensenews.com.
This has happened before. Loc Performance has supplied the U.S. government for decades and is competing for far larger prizes. Those include the XM30 combat vehicle program valued near $45 billion for about 4,000 vehicles and the Common Tactical Truck program worth roughly $16 billion for 40,000 trucks according to euro-sd.com. Loc’s annual sales were projected to reach between $650 million and $820 million in 2026 according to defensenews.com.
The next decision rests with the Defense Logistics Agency, which may exercise the one-year option before the ordering period ends Aug. 5, 2027. A date for that determination has not been announced.
Foreign defense firms buying their way into American factories isn’t new. Britain’s BAE Systems built a U.S. arm after acquiring United Defense in 2005 for $3.97 billion, folding in the maker of the Bradley Fighting Vehicle. Italy’s Leonardo expanded through DRS Technologies, purchased in 2008 for about $5.2 billion. Each deal placed a European parent atop an established American supplier, much as Rheinmetall has done with Loc Performance, and each firm went on to win sustained Pentagon work.
This contract represents the 2nd contract awarded to Loc Performance Products LLC, doing business as American Rheinmetall, in 2026, bringing the company’s total contract value for the year to $33,533,175. It is also the 25th Department of Defense contract awarded in Michigan during 2026. While this is not the largest contract ever awarded to Loc Performance Products LLC, doing business as American Rheinmetall, whose record stands at $153,329,604, it is notable within the Defense Logistics Agency portfolio. Specifically, it falls between the 2026 Defense Logistics Agency portfolio’s year-to-date minimum of $9,000,000 and maximum of $1,525,000,000. Overall, this award was announced among 5 Department of Defense contracts issued nationwide on August 5, 2026.
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