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Up to $2B for U.S. Army Munitions Orders to Alliant Techsystems

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Alliant Techsystems (ATK) in Minneapolis, MN received $42 million in small-caliber ammunition orders from the U.S. Army Sustainment Command in Rock Island, IL to produce 5.56mm, 7.62mm and .50-caliber ammunition. ATK Small Caliber Systems will perform work at the Lake City Army Ammunition Plant (LCAAP) in Independence, MO. The orders are part of a four-year indefinite delivery/ indefinite quantity contract (W52P1J-09-D-0027) worth up to $2 billion.

ATK said it began operating the LCAAP in 2000 and is the largest supplier of small-caliber ammunition to the U.S. military, producing a mix of 5.56mm, 7.62mm, .50-caliber, and 20mm cartridges, as well as ammunition links. Working in partnership with the Army, ATK has expanded manufacturing capacity at the plant, and is also under contract to modernize the facility. The company has delivered 1.4 billion rounds of ammunition in FY 2009.

The US armed forces have suffered from small arms ammunition shortages in recent years, and their reliance on the World War 2 era Lake City plant as their sole source for military small arms ammunition was a contributing factor. In addition to financing the modernization of the Lake City facility, the US military has made General Dynamics Ordnance & Tactical Systems (GD OTS) its second source supplier for small arms ammunition.

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