OUTSOURSING AMERICA
http://www.dailystar.com/dailystar/news/21194.phpThe U.S. Army said it will seek bullets from commercial and foreign producers because its biggest ammunition supplier, Alliant Techsystems Inc., can't keep up with demand.
"The hope is to get it from the U.S., but worldwide suppliers are out there that provide this and it might not be totally available in the U.S.," said Lieutenant Colonel Matthew Butler, Army product manager for small- and medium-caliber ammunition.
Edina, Minnesota-based Alliant Friday said demand is rising to its highest level since the Vietnam War.
To make up for the shortage, the Army recently awarded contracts to state-owned Israel Military Industries Ltd. and Olin Corp.'s Winchester unit, each for 70 million rounds, Butler said in a telephone interview. He said he couldn't disclose the value of the contracts.
The Army wants to buy about 1.4 billion bullets this year and have the capacity for 2 billion rounds a year, Butler said. That is more than Alliant can make, and there are few other companies that can make military ammunition on such a large scale. The Army plans to seek a company able to coordinate production of as much as 500 million rounds by a number of smaller producers, Butler said.
"The strategy now going forward is to go through an integrator or someone who brings all that worldwide capacity together for us," said Butler, 41. "I don't think there is anyone out there who could do it and make U.S. ammo."
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