The initial $171 million award calls for approximately 300 million rounds. The contract has a total potential value of approximately $1.2 billion if all options are exercised.
According to a statement, this contract establishes General Dynamics as a second-source prime contractor for the production of various types of 5.56mm, 7.62mm and .50 calibre ammunition. The company is already a supplier of medium- and large-calibre ammunition and bomb bodies to US forces.
Members of the General Dynamics team are already filling emergency small-calibre ammunition orders for the US government. Through this program, General Dynamics will serve as a second source to quickly respond to growing demands in small-calibre ammunition for up to 500 million rounds per year.
General Dynamics Ordnance and Tactical Systems will be the prime systems contractor and logistics manager for the program, with its St. Marks Powder subsidiary providing BALL POWDER? propellant.
A team of domestic and international partners will support General Dynamics Ordnance and Tactical Systems, including Olin Corporation’s Winchester Division; SNC Technologies of Canada; Israel Military Industries; and General Dynamics Santa Bárbara Sistemas, Madrid, Spain.