Federal Ammunition Awarded $114 Million U.S. Army Contract

Federal to supply the Army with 5.56 NATO frangible ammunition for live-fire training.

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posted on September 22, 2022
Federal Money

Federal Ammunition is commemorating its 100th anniversary this year, but that isn’t the only milestone the company is celebrating. On Aug. 18, United States Army Contracting Command awarded it the largest government contract in the storied firm’s history.

The agreement is for Federal to produce the AA50 5.56 NATO frangible ammunition (MK311 MOD 3) used by U.S. troops during live-fire training. The five-year, firm fixed-price contract has an anticipated completion date of Aug. 17, 2027, and is valued at $114,813,500.

“This contract is historic,” said Jason Vanderbrink, president of Federal Ammunition. “It is the largest government contract awarded to Federal in its 100-years of operation and speaks volumes to the trust the United States military has in our American workforce assembling the best products for our servicemen and servicewomen.”

In 2017 the U.S. government issued a similar contract with Federal for AA40 loads. The agreement was valued at $52.8 million, however. A $13.9 million purchase followed in August 2020.

“Successfully executing on the AA40 contract requires large-scale-production capabilities combined with stringent quality control measures,” said Erik Carlson, senior director of operations at Federal’s headquarters located in Anoka, Minn. “Awards of this magnitude are validation of Federal’s committed workforce to meet these demands and provide the best ammunition possible for our U.S. Armed Forces time and time again.”

The AA40 cartridge features a 50-grain frangible bullet with a core composed of a non-toxic copper and tungsten powder matrix. Combined with the gilding metal jacket it fragments into small pieces upon impact, minimizing over-penetration and reducing ricochet. 

“Federal’s frangible training ammunition has been recognized as the best in the business by the United States military and this latest U.S. Army awarded contract continues that recognition,” said Vice President of Government Sales David Leis. “The ammunition is designed to disintegrate into small fragments on impact, minimizing over-penetrating and ricochet hazards, making it ideal for training purposes.”

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