I haven't seen the contract but I've seen similar contracts, and the total amount purchased never comes close to the upper limit on the contract
Yeah. Folks with little or no experience with .gov procurement don't understand the huge amount of padding and boiler plate that goes into these contracts.
Including a pie-in-the-sky upper limit on the quantity of "whatever" gets them a slightly better deal from the vendor on the .001% chance the .gov may order the full amount, even though both sides know they won't. Or that really high number greases the rails for other aspects of the RFP and the contract. Like scaring away smaller vendors who might just manage to handle the
actual number the .gov might order in X years, but it's iffy, with a significant chance of failure to deliver at some point. So it also serves as a way to reserve the bids and RFP's to tier 1 manufacturers and providers, and they don't have to deal with the headache of finding other creative ways to reject other bids.
If DHS made the RFP/bid reqs. for the actual amount they're likely to use over the next 5 years, and it was some number in the millions, Joe-Bob's Ammo, running out of his garage might figure he can just squeak that order out, so he'll bid on it, despite the fact on year two, lighting hits his house, his dog dies, and his wife gets cancer or something... stuff .gov understandably does not want to deal with. Joe-Bob obviously won't see it that way, so he whines to his Congressman, who then sends a bunch of nasty letters to folks in DHS who have to spend yet more time smoothing things over...
So DHS makes the RFP in the billions so only ATK/Federal, and Olin Winchester will bite, even though the actual number delivered might just be 1/10th, 1/20th, or even 1/100th of that.
It's not really any evidence of a vast conspiracy, it's just a symptom of how unbelievably farked up .gov procurement and accounting is, cost-plus contracting, baseline-budgeting etc. as compared to the private sector.
My only to the ammo purchase is I stronly question whether the intent was to also help cause a shortage in the civilian market. We know there are those in this administration and in this government that would like to disarm us. I lean towards it being simple nannystatisim, tempered with a bit of the old government through "crisis" mentality.
From what I've been finding out from "big ammo" and how they run things at places like Lake City, it won't affect things that much. It might even help drop the cost of US made .40 a bit, or if not that, at least up the .40 supply some. From what I've been told, it would take WWIII to make them actually yank the dies of other calibers off of the machines to make some other caliber. Or actually order the dies, or make them or whatever in the first place.
My only
- thought on this is it could indicate someone at DHS is projecting fiscal trouble to the point they may not be able to procure the ammo later due to monetary instability, and trying to lock ATK in on the contract now while the USD/FRN is still worth "X". However, I'd have to see other large purchases of shelf-stable consumables by other .gov entities before I'd believe even that.