  Supersymmetry breaking via gaugino condensation is studied in vacua of
heterotic M-theory with five-branes. We show that supersymmetry is still broken
by a global mechanism and that the non-perturbative superpotential takes the
standard form. When expressed in terms of low energy fields, a modification
arises due to a threshold correction in the gauge kinetic function that depends
on five-brane moduli. We also determine the form of the low energy matter field
Kahler potential. These results are used to discuss the soft supersymmetry
breaking parameters, in particular the question of universality.
