The work on a dozen tanks is worth $72.7 million and comes under an existing contract from the U.S. Army TACOM Lifecycle Management Command.
Work on upgrading the main battle tanks is to be completed by the end of 2015 and will be performed at company facilities in Alabama, Florida, Michigan, Ohio and Pennsylvania, the company said.
The M1A2 SEP V2 tank configuration includes improved color displays, day and night thermal sights, commander remote-operated weapon station, a thermal management system and a tank-infantry phone.
"The M1A2 SEP V2 maximizes the fighting ability of the tank on today's battlefield while preparing the platform for tomorrow's challenges," General Dynamics said.
In early 2008, the company received a multiyear contract for the upgrade of 435 M1A1 tanks that have been in the Army's inventory for more than 20 years. General Dynamics is continuing conversion work under that award.