MASS for Effect: The UK’s Long-Term Ammo Contract

81mm mortar
(click to view larger)

A weapon without ammunition is useless, which is why ammunition is almost always a strategic national capability whose production must remain in-country. On the other hand, government demand has a tendency to swing up and down within narrow limits, and the demands of efficiency usually lead to a single supplier situation – often using equipment that dates back to World War 2. The USA has run into problems because of its reliance on a single small arms ammunition plant, for instance, and has moved to modernize and diversify its base. Its ally Australia is modernizing key ammunition facilities, and trying to modernize its industrial approach as well.

Then there’s Britain, whose long-term defense contracting practices are establishing world-class benchmarks. The UK MoD had been working on an arrangement that secures national supply needs from British sources, and ensures that modernization investments continues to improve industrial efficiency. Hence the new 15-year, GBP 2+ billion “Munitions Acquisition Supply Solution” (MASS) program, inaugurated in August 2008.

• BAE and The MASS Program
  
• Contracts & Key Events [updated]
  

Dutch Sign 10-Year Ammo Agreement with Rheinmetall

PzH 2000NL firing,
Afghanistan

In December 2010, the Dutch Ministerie van Defensie signed a 10-year, EUR 200 million (about $270 million) framework agreement with Rheinmetall Defence that lets the Netherlands order a wide range of different ammunition and pyrotechnic types, from bullets and propellant charges to grenades. The first order was actually placed at the end of 2010, and involved modular propellant charges for the army’s PzH 2000NL self-propelled 155mm howitzers.

This contract replaces several existing agreements. The Dutch Army already relies on Rheinmetall for nearly all its ammunition needs, including practice and service ammunition in multiple calibers. Assured access to supllies at short notice is therefore part of the agreement. So, too, is external storage and management. The end result moves toward more of a “just in time” ammunition supply model. As a bonus, the Dutch MvD no longer has to pay value-added tax on purchases within this contract.

Dutch and German cooperation between their defense procurement groups forms a related facet of this partnership. The Dutch DMO and German BWB will undertake joint development, testing, purchasing and storage for 6 ammunition types: 44 mm and 76 mm grenades, 120 mm tank shells, 155 mm PzH-2000 howitzer ammunition, and Panzerfaust rockets. They will also share test data, and make use of each other’s testing facilities and equipment. As an initial example, a Dutch PzH-2000NL that is already in South Africa for long range and precision ammunition tests, which cannot be performed at any range in Europe, will be used by the Germans for their own tests. All results from both countries’ tests will then be shared. MvD [in Dutch | English] | Rheinmetall Defence.

France & Spain Order New Eurocopter Tiger HAD Variant

Tiger HAP & HAC

In December 2005, Eurocopter Tiger and the French/European OCCAR organization for armament cooperation signed a formal contract in Bonn, Germany, to create a HAD version of Eurocopter’s Tiger scout/ attack helicopter . This agreement superseded the official launch ITP (Instruction To Proceed) for the multi-role HAD (Hélicoptère Appui Destruction) version of the Tiger, signed on December 8th, 2004 by France and Spain. It also set out initial procurement numbers for Spain. This was followed by the French DGA’s official announcement re: the restructuring of its own 80 helicopter order.

Eurocopter’s Tiger had always had a very odd setup in that it came in two seemingly incomplete versions (HAP and HAC/UHT), severely limiting its flexibility. The new Tiger HAD variant helps to rectify this, and has entered a new stage thanks to testing and ancillary weapons orders from France and Spain. The latest tests involve RAFAEL’s Spike air-ground missile.

US Ammo Shortage: GD Now A Second Source Prime as it Delivers Guns, Ammo

Ma Deuce, raising demand…

In July 2005, “Pass The Ammunition: Army Taking Action on Small-Cal Shortages” began covering some of the steps the US Defense Department was taking to address this issue. Few reserves, a low production rate, and some of the oldest assembly-line machines on the supply side, coupled with skyrocketing demand, had made for a difficult situation. The Us military went on the invest substantial funds, in order to help modernize the World War 2 era Lake City ammunition plant, which had become the USA’s sole source of small caliber military ammunition.

Even so, the situation was creating both front line shortages, and strategic risk. In 2005, therefore, the Army took steps to move General Dynamics into an important second source supply role, and awarded GD OTS a substantial contract…

Up to $2B for US Army Munitions Orders to Alliant Techsystems

$372 million in US Army orders for small caliber ammunition. (May 3/10)

On March 20/09, Alliant Techsystems (ATK) in Minneapolis, MN received a 4-year indefinite delivery/ indefinite quantity contract (W52P1J-09-D-0027) from the US Army Sustainment Command in Rock Island, IL to produce 5.56mm, 7.62mm and .50-caliber ammunition at the Lake City Army Ammunition Plant (LCAAP) in Independence, MO. The contract has a potential value of $2 billion.

ATK began operating the LCAAP in 2000 and is the largest supplier of small-caliber ammunition to the US 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…

SLAP Happy: Olin Gets $43.4M Order for “Ma Deuce” Ammo

“Ma Deuce”

Olin Corp.’s Winchester Division in East Alton, IL received $43.4 million indefinite-delivery/ indefinite-quantity with firm-fixed-price orders for .50 calibre M903 saboted light armor penetrator (SLAP) and M962 saboted light armor penetrator tracer (SLAPT) bulk and the 4 ball (M903) to 1 tracer (M962) configuration.

The .50 caliber SLAP ammunition was developed by the US military during the mid/late 1980s for the M2 heavy machine gun, known as “Ma Deuce.” It uses a reduced caliber, heavy metal (tungsten) .30 inch diameter penetrator wrapped in a plastic sabot or “shoe” of .50 inch diameter.

Iraqi, Afghan Operations Prompt US Army Order for More AH-64D Apache Ammunition

Alliant Techsystems (ATK) in Minneapolis, MN received an $86 million base-with-option contract to provide lightweight (LW) 30mm M789 High Explosive Dual Purpose (HEDP) tactical ammunition for the AH-64D Apache attack helicopter. The U.S. Army Contracting Command’s Rock Island Contracting Center in Rock Island, IL manages the contract. Alliant expects to begin production in December 2009 at the company’s facilities in Elk River, MN; Radford, VA; and Rocket Center, WV.

The AH-64D Apache attack helicopter has been going through Block III improvements that are incorporating 25 technology insertions as part of the Army’s future force plan. “Apache Block III Program: The Once and Future Attack Helicopter” has more on the Block III improvements.

In a September 2008 letter justifying the use of ATK as the sole supplier of LW30mm M789 HEDP ammunition, the US Department of the Army said that the depletion of stocks from operations in Iraq and Afghanistan prompted the order. There are several reasons that this weapon has been so popular…

South Africa’s Denel Forced Into Strategic Shift

Base, Bleeding Out?

Back in July 2005 it was apparent India’s sanctions against Denel and possible disqualification from a $2 billion artillery contract could have a major effect on the South African defense firm as a whole. In August 2005, those sanctions came to pass, barring Denel from a contract it was likely to win and accelerating efforts already underway to radically restructure the firm.

CEO Shaun Liebenberg launched that shift in late 2005 with some frank discussion of the global defense market, and the position of small-medium players like Denel in it. At DSEI 2005 in London, UK, the outline of this new strategy was already apparent. Many of the products Denel is known for will no longer define the firm. But could it find a way to stanch the bleeding and survive in a globalized market?

And how has it done since?

• Denel’s Position
  
• Denel’s New Strategy
  
• Updates and Key Events [updated]
  

Non-Standard Ammo Orders for Iraq

Iraqis train: M240B, PKMs

June 11/09: Agility Logistics subsidiary Taos Industries Inc. in Huntsville, AL won a $30.2 million firm-fixed-price contract for 33,400,938 rounds of “various non standard ammunition” for the Republic of Iraq. Work is to be performed in Huntsville, AL until Oct 29/10. Bids were solicited on the World Wide Web, with 3 bids received by the Rock Island Contracting Center in Rock Island, IL (W52P1J-09-C-0026). See also firm release.

Taos has also been contracted by Rock Island to supply “non-standard” ammunition to Afghan Army forces, in the wake of the AEY scandal. In these cases, “non-standard” means non-NATO standard. The Soviet caliber 7.62×39 ammunition used in AK-47 type assault rifles would qualify; Iraq is phasing them out in favor of the American 5.56mm M4 carbine, but Iraqi forces operates some. Likewise, the 7.62x54mm ammunition used in Iraq’s Dragunov sniper rifles and PKM light machine guns is a non-NATO caliber, and hence “non standard.” In Afghanistan, Taos is also supplying 12.7 x 108 mm ammunition for Soviet heavy machine guns, and 70.5mm PG-7VM rocket propelled grenades.

$49.9M US Contract for 300 Winchester Magnum Ammo

MK13 Mod 5

ATK subsidiary Federal Cartridge Co. in Anoka, MN received a $49.9 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract for .300 Winchester magnum ammunition. Maximum quantity is 80,100 boxes of 480 rounds each, minimum is 117 boxes. This ammunition will be used by U.S. forces engaged in combat, and by the US Navy in Match Team competition.

300 Winchester offers longer range, better accuracy, and more hitting power than standard NATO 7.62 x 51 mm rounds. The MK248 MOD 1 cartridge grew out of the .300 Winchester Magnum Product Improvement Program…