Military Gun Contracts

In recent years, the U.S. military has increasingly turned to private gun manufacturers for its military gun contracts. This trend is likely to continue, as the Department of Defense (DOD) looks to cut costs and streamline its procurement process.

According to a report from the Congressional Research Service (CRS), military gun contracts spent about $2.2 billion on small arms and ammunition in fiscal year (FY) 2015. The vast majority of this sum went towards private gun makers.

In 2015, the DOD awarded over $1.6 billion in small arms contracts to just three companies. The companies in question were Sig Sauer, FN Herstal, and Beretta USA. These companies supplied the military with pistols, rifles, and machine guns.

The CRS report notes that the DOD has been moving away from sole-source contracts. This is where only one company is contracted to provide a particular good or service in favor of competitive bidding.

The trend toward privatized military gun contracts is likely to continue. The Pentagon looks for ways to save money and streamline its operations. Private companies are poised to benefit from this increased demand, as they get a larger share of the military firearms market.