Monday, February 18, 2013

DHS buying billions of rounds? Not so fast . . .

Sense of Events: DHS buying billions of rounds? Not so fast . . 
"So there you have it.
I retract the Feb. 7 post and affirm today that DHS is not buying billions of rounds of pistol ammo with one proviso: DHS is not buying billions of rounds as quickly as some of us bloggers say they are.
But they are still buying a heck of a lot of ammo that, if continued at the published pace, definitely will come to billions over a longer time.
Consider major ammo manufacturer ATK's announcement of 11 months ago:

ANOKA, Minn., March 12, 2012 /PRNewswire/ -- ATK (NYSE: ATK) announced that it is being awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement from the Department of Homeland Security, U.S. Immigration and Customs Enforcement (DHS, ICE) for .40 caliber ammunition. This contract features a base of 12 months, includes four option years, and will have a maximum volume of 450 million rounds.
PR Newswire (http://s.tt/1rCHc)

If DHS exercises all the options of this single contract, it will buy 90 million rounds per year of .40-caliber pistol ammo alone. 
What are the contracts for 9mm and rifle ammo?
That would likely make some interesting totals."

No comments: