$52.2M to Finance Ongoing Lake City Ammo Modernization - DID

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From Defence Industry Daily, 25 Jan

The U.S. Army Sustainment Command in Rock Island, IL recently issued a delivery order for the full amount of a $52.2 million firm-fixed-price contract with ATK's Lake City Small Caliber Ammunition Co., LLC in Independence, MO. Work will be performed in Independence, MO and is expected to be complete by Sept 30/09. One bid was solicited on Oct 31/06, and 1 bid was received (DAAA09-99-D-0016).

The contract is slated to finance the ongoing modernization and enhancement of ammunition production at the Lake City Army Ammunition Plant, a legacy of World War II that remains the USA's main manufacturing plant for small caliber (.50 caliber and lower) ammunition. In July 2005, "Pass The Ammunition: Army Taking Action on Small-Cal Shortages" explained the issues American forces have faced with ammunition shortages, and the steps that have been taken over the past few years to address this issue.
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Hopefully this will help address the global ammo shortage and the price of commercial ammo will go down a little as less is diverted to the U.S. Military.
 
P0WERWAGON said:
the Lake City plant doesn't sell ammo.
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My understanding is that while this plant is owned by Uncle Sam, ATK has the management and operations contract. When Uncle Sam wants ammo, Uncle Sam gets ammo. When the military orders are filled, excess production capacity is used at ATK's discretion.

That is why you will find LC headstamped cases in new lots of Federal ammo. (Federal is a division of ATK)

Prior to ATK getting the contract, it was run by WInchester for a number of years, who also seem to have made good use of their tooling.
 
This will have little affect on the civie market. There are at least 5 plants running full out making ammo for the US. I just spoke to IMI, they see no end in sight.
 
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