Released under the GIC Framework
Rheinmetall Defence announced today that the U.S. Marine Corps placed a new $61M delivery order for MK281 cartridges with the Düsseldorf-based Rheinmetall Group. The new delivery order signifies the U.S. Marine Corps (USMC) continued commitment to align its procurements with the Department of Defense's initiative to field safer, "Green" training ammunition.
The USMC awarded Rheinmetall a 5-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract in 2006 to supply MK281 cartridges. In October 2007, the USMC announced that it was increasing the value of the IDIQ contract to allow the US Army the opportunity to buy MK281 supplies under their IDIQ contract. To date, the USMC has now placed orders with Rheinmetall for $133M of MK281 supplies. The framework (IDIQ) contract provides the USMC with options to order up to $65M annually through 2011.
Rheinmetall's US subsidiary, American Rheinmetall Munitions, Inc. (ARM), in Stafford, Virginia produces the MK281 cartridges. ARM has developed a US supply chain for ammunition components and has established several partnerships with US Small Businesses. Rheinmetall has teaming agreements with Cyalume Technologies in Springfield, Massachusetts and Spectra Technologies in Camden, Arkansas. ARM has MK281 suppliers producing material for the program in Maine, Massachusetts and Virginia.
Following a similar path as the MK281 "Green" ammunition program, Rheinmetall has several other active ammunition programs with the Department of Defense. Recently, Rheinmetall's XM1110 day and night 40 mm training cartridge completed successful user trials in Camp Avon Florida. The XM1110 is a non-toxic, non dud producing cartridge that provides military users the capability to conduct fire and maneuver training "24/7" with 40 mm grenade launchers like the H&K XM320 grenade launcher. The U.S. Department of Defense has shown great interest in Rheinmtall's innovate "green ammunition" and advanced safety technologies. Rheinmetall's new cartridges are expected to enter US service by 2010.