December 7, 2008 6:00 PM
- Text
Army Trys Again with Ammo for Afghanistan by Alliant Techsystems
(MoneyWatch) Last year one of the biggest procurement scandals was that of AEY providing Chinese ammo for the Afghan army under a U.S. contract. Not only was the ammo inferior, AEY an unproven supplier, but the use of Chinese products violated the law. That contract was canceled and AEY is being investigated. Now the US Army has awarded a one year, $87 million dollar contract to Alliant Techsystems according to Finance and Commerce. Success with this contract may lead to a bigger $1 billion contract to provide ammo to the Iraqi and Afghan forces. Most of the ammo to be provided will be for Russian type small arms as this is what the two US ally armies primarily use. Alliant Techsystems through some careful acquisitions has become of one of the leading providers of ammo for the US.
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