Although announced by DoD in April, Remington made their formal, corporate announcement this past Friday the 13th of their award by USSOCOM for 5,150 Precision Sniper Rifle Systems in a 10 year contract worth over $79 Million. This was a long process. The solicitation was released way back in November, 2011.
Remington Arms Co., LLC., Madison, N.C., is being awarded a ten year, indefinite-delivery/indefinite-quantity, firm-fixed-price contract for the purchase of the precision sniper rifle (PSR) system for U.S. Special Operations forces. The estimated contract value is $79,717,783. The maximum quantities for this requirement are projected to be 5,150 PSR systems and 4,696,800 rounds of ammunition. The work will be performed at Remington facilities in Ilion, N.Y., and Elizabethtown, Ky., and the ammunition at Barnes Bullets facility, Mona, Utah. The expected completion date is March 7, 2023. The contracting activity is U.S. Special Operations Command, MacDill Air Force Base, Fla., (H92222-13-D-0003).
Madison, N.C. -The United States Special Operations Command (USSOCOM) has awarded the Remington Defense Division of Remington Arms Company, LLC (“Remington”) – a subsidiary of Freedom Group Inc. (“FGI”) – a $79.7 million dollar Firm Fixed-Priced (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract to provide up to 5,150 Precision Sniper Rifles (“PSR”) and 4.6 million rounds of precision ammunition. This award is the result of full and open competition conducted by USSOCOM.
Remington Defense will serve as the system integrator for the PSR, which is a durable sniper system capable of providing accurate target engagement and modular capabilities in barrel length and caliber conversion. Remington Defense will utilize two other FGI companies in the production process; Barnes Bullets will produce ammunition and Advanced Armament Corporation (AAC) will manufacture muzzle breaks and suppressors.
Remington Defense already holds the U.S. Army’s $28M contract for 3,600 XM2010 enhanced sniper rifle systems. Remington Defense will be able to leverage its sniper management, workforce, and supply base to ensure the delivery of quality and highly-effective PSR systems.
The PSR award further establishes FGI’s dominance in sniper system expertise, technology, and manufacturing capability for the U.S. Armed Forces and Law Enforcement Agencies. FGI has the ability to produce a fully integrated sniper system consisting of firearm, suppressor, and ammunition products. FGI’s capabilities provide customers with unparalleled product affordability, quality, and technology.
“We are proud to provide our military Special Operations Forces with top-of-the-line technology,” said George Kollitides II, Chairman and Chief Executive Officer of Freedom Group and Remington Arms. “The expertise, quality and centuries of experience at Remington are clearly recognized. This award not only represents a new era in precision sniper systems, but also proves that an American manufacturing company can still expand its product offerings and compete in this modern age to provide best in class weapons, ammunition, and suppressors to our troops defending freedom around the globe.”
“Members of our armed forces, and especially those on Special Operations teams, are our Country’s first line of defense,” said John Day, Vice President and General Manager of Military and Law Enforcement. “They deserve the highest quality and newest technology available. Every aspect of the PSR was designed with this in mind.”
Over the past four years, Remington Defense invested in its ability to compete in the government small arms space by modernizing production facilities, focusing research and development on end-user requirements, and ensuring consistent and repeatable quality in a high-volume, high-mix manufacturing environment.
Tags: Remington
Why does it cost 79mil to supply 4 million rounds and 5 thousand systems? Anyone who knows the answer please reply. Say the rifle systems sold for around 20k each and a bullet is a dollar a piece you still get no where near 79 million. Where does the extra money go?
You may want to check your math. Your example of 5 thousand systems at 20 K each is 100 Million dollars. The contract amount is very plausible.