Army Awards $1.5B in Contracts to Increase Ammo Production Capacity

The U.S. Army awarded contracts worth $1.5 billion combined before the end of fiscal year 2023 to procure components and materials needed to increase the production of 155-millimeter ammunition.

Through the contract awards to nine companies, the Army aims to maintain momentum to achieve its goal of producing 80,000 projectiles per month by the fourth quarter of fiscal 2025, the service branch said Thursday.

The contracts cover 14.2 million pounds of bulk energetics, 270,000 primers, 678,000 fuses, 2.7 million modular artillery charge system combustible cartridge cases, load assemble and pack of 1.6 million MACS propellant increments and load assemble and pack of 451,000 M795/M11238 projectiles.

The Army also awarded contracts to increase industrial base production capacity for M795 LAP, MACS CCCs and MACS propellant.

Among the contractors awarded contracts in September is Day & Zimmermann, which secured a $966.7 million contract from the Army to produce and deliver 155 mm MACS M231/M232-series combustible cartridge cases.

American Ordnance and General Dynamics‘ (NYSE: GD) ordnance and Tactical Systems business were also awarded spots on a potential $974.4 million contract for the Army’s 155 mm M1128 LAP requirements.

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