Summary: The recuperator, a component in the M1 Abrams tank's turbine engine, transfers heat from the engine's exhaust to its incoming air, allowing the engine to run more efficiently. The Army canceled its two alternate recuperator contracts because it foresaw no need for spare recuperators until 1995. According to Army contracting officials, the two contractors experienced a series of problems and increased contract costs in developing their alternate recuperator prototypes. These problems, however, were not cited as a factor in the cancellation of the contracts. Army officials said that although the Army does not need to buy spare recuperators, unresolved problems with the recuperator remain. The extent of the recuperator failures is unknown because the Army does not systematically collect field data on the performance of the recuperator. Currently, the Army has no plans to collect field data on recuperator failures. Officials at Textron Lycoming acknowledge that not all of the recuperator problems have been resolved and that, moreover, these problems will become more severe with the fielding of the heavier, fully equipped M1A2 tank. In an attempt to resolve these problems, the manufacturer has submitted engineering changes to the Army for testing.