Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Page / 11
Next Page Arrow Left
Link Posted: 5/3/2022 11:45:09 AM EDT
[#1]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I will dispute the relevance of that part.  Allow me to elaborate.

... to my interpretation, it seems like the purpose of the NGSW contract was to develop the ammunition and provide initial capacity, not necessarily award a sole-source supplier indefinitely.

...  We'll have to make some assumptions. Is all of that 3.3 billion dollars ammo?

...  easy math, 3.3 billion rounds of ammunition.

6.6 billion rounds to cover 1,375,000 "weapon-years" means that each weapon will be firing 4800 rounds per year. When I was in, I felt lucky to fire a fifth of that per year.  Often, it was less.  And 4,800 rounds per year sounds like you're going to be going through two barrels a year with this new extreme high pressure ammunition.  That just doesn't square.  I see no way on earth those rifles from the initial batch will be able to fire 48,000 rounds over ten years. I don't think Sig will be putting out billions of rounds at all. I think that will fall to Lake City and will be outside the scope of the $4.5 billion contract.

This doesn't provide any hard numbers, but I'll add this from the press conference I linked earlier, which should be illuminating:

It's obvious that the Army's intent is to produce the vast majority of all 6.8x51 ammunition, they just need time to build the infrastructure at Lake City first.  I wonder if Winchester-Olin will run that, too?

That's a measly 4.5% of the 3.3 billion figure I used to steel man your argument, and seems like a much more likely number.

The only reasonable conclusion I can draw here is that this rifle is pants-on-head stupid expensive. I can't wait to see this covered in Rand Paul's Festivus fraud-waste-abuse report this year.
View Quote
Considering SIG did all their own R&D, that money is going to be amortized before profit.  Let's say SIG makes at least 50% profit -- that's capitalism.

In the interim before Lake City starts building new infrastructure (I think they gave Winchester-Olin $150 million to do that, but do not remember the timeline), how many rounds of ammunition do you think it will take to stock at least 30 days worth of war inventory?  You've also got to send that ammo forward to pre-position (somewhere in Asia and wherever we have pre-position ships).  How many rounds for basic recruit training (infantry, cav scout, and sappers, both recruits and new lieutenants) over the ten-year period?  How many for a war mobilization expansion?

Don't forget this is still an "XM," and nothing has been standardized.
Link Posted: 5/3/2022 1:03:39 PM EDT
[#2]
What would happen if you made 5.56 in the same style as the new cartridge? How much beefing up would you have to do to the existing rifles and would there be added improvements to the rounds being fired?
Link Posted: 5/3/2022 1:14:12 PM EDT
[#3]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I can't confirm or deny your numbers tho as a WAG I think you make a lot of sense.

I still see trouble ahead on the ammunition;  pressures & mass production of hybrid cases, barrel life, parts breakage to start with.

The only absolute upside I see to this program for the taxpayer is if he is sort of Fuddy like me and can eventually score some cheap bulk .277 diameter bullets for his .270 Winchester.
 
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I can't confirm or deny your numbers tho as a WAG I think you make a lot of sense.

I still see trouble ahead on the ammunition;  pressures & mass production of hybrid cases, barrel life, parts breakage to start with.

The only absolute upside I see to this program for the taxpayer is if he is sort of Fuddy like me and can eventually score some cheap bulk .277 diameter bullets for his .270 Winchester.
 


Quoted:
Considering SIG did all their own R&D, that money is going to be amortized before profit.  Let's say SIG makes at least 50% profit -- that's capitalism.


Let me break it down a different way.  This 4.5 billion for 250,000 weapons and 150 million rounds of ammo is crazy no matter how you spin it.

First of all, if you haven't read through it the transcript of the Army's press conference is enlightening.

There's obviously some R&D expense baked into this for Sig.  I would make the case that it's an amount of R&D expense that approaches fraud, waste, and abuse territory. It's hard to break the per-unit cost down because the contract covers two types of weapons as well as a small initial quantity of ammo. (Lake City being the primary source for 6.8x51 once the infrastructure is built out.)

According to Matthew Moss at overtdefense.com, the (up to) 4.5 billion contract covers (up to) 150,000,000 rounds of ammo.  A figure that was repeated in the above linked transcript.  But all of the projectiles are being supplied by the Army to Sig, so they're not paying for that component out of this contract.

Sig is selling .277 Fury for $4/rd on the commercial market.  One can only assume that the price to the government will be much less.  I think it might be on the order of 50-75 cents a round eventually, but let's be conservative and call it $3 a round with the Army supplying bullets.

So that's $450 million of the $4.5 billion accounted for.  Even at $3 a round, it doesn't make a big dent in that figure.

There are no hard numbers on how many M5's and M250's comprise the (up to) 250,000 weapons making up the (up to) $4.5 billion figure.  But they did state that to equip the "close combat force" it would be 107k M5's and 13k M250s, so about an 89%-11% split.  (I should note here that the 250,000 figure accounts for sales to other branches and presumably NATO allies, but we've got to roll with it since they didn't provide a dollar figure for equipping the 120,000 weapons needed for the "close combat force".)

Again, no numbers were provided to break the cost per M5 and M250 out, but I'll do my best using what amount to "peers" of those weapons.  I feel like it's almost unfair to use the most recent cost of an M4 (something like $670) as a starting point, since the development on that weapon system is long paid for and the Army is supplying TDP to vendors who need only follow the established formula and build rifles. The IAR might be a better "peer" to choose for the M5 having been more recently developed, initial cost per unit of the M27 was $3000 (more recently they bought 15,000 more for $1300 each.)  As for the M250, it similarly seems a bit unfair to use the M249 or M250 as examples, but the Mk48 or M240L might be more comparable.  I can't find a figure on the Mk48, but the M240L costs around $9200 per unit.

So using those $3000 and $9200 figures, let's just say that the M250 will cost about 3x what the M5 costs.  This is only a guess, but a necessary and informed guess based on prior precedent.

Back to our 4.5 billion dollars, we've got $4.05 billion left after accounting for ammo at (a crazy expensive) $3 a round.  Using our 89-11% split of M5 to M250, the (up to) 250,000 weapons in the contract would likely comprise 222,500 M5's and 27,500 M250's.  And if the M250 costs 3x what the M5 costs, we can solve for the M5 cost using this formula:

4,050,000,000 = (222500 * x) + (27500 * 3 * x)

Solve for x, and you get $13,278.69 per M5.  $39,836.06 per M250.

I can't fathom how they're justifying this.  It's beyond the pale.  The M5 costing (at scale, we're talking hundreds of thousands of units) an order of magnitude more than what we're currently paying H&K for the M27 IAR is pants-on-head crazy.

The M250 costing 4x what an M240L costs, is similarly pants-on-head crazy.  And we're again talking a much greater scale than the M240L production.  Smaller runs are necessarily more expensive.  The maximum award of this contract doesn't comprise a "small" production run.

The $3000 initial cost of the M27 resulted in congress freaking out, and the price coming down.

We desperately need some of that freak-outery when we're talking about putting a $13,278.69 rifle with a $10,800 optic in the grubby hands of every 18 year old who attains a combat arms MOS.

I'd urge each of you to contact your congressional representation over this mess.
Link Posted: 5/3/2022 1:20:21 PM EDT
[#4]
looks like they are going a whole different direction.



they are putting loudeners on them.
Link Posted: 5/3/2022 2:12:48 PM EDT
[#5]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I will dispute the relevance of that part.  Allow me to elaborate.

Yes, the NGSW solicitation was for a weapon system including ammo and an optic - but the optic as we have seen has already been given a separate contract.  And to my interpretation, it seems like the purpose of the NGSW contract was to develop the ammunition and provide initial capacity, not necessarily award a sole-source supplier indefinitely.

Lake City is gearing up to produce 6.8 and it's been put out that the government is already supplying projectiles to Sig for their own efforts in this initial phase.

This is the best info I can find on the subject of ammo going forward, from the Army's press conference transcript, emphasis mine:



I want to just emphasize this part again:



That tells me Lake City is going to be pumping out M1184/M1186 fully in-house.

Even if Lake City will be complimentary to Sig Sauer's own production, there's still this:



As anyone who reloads can tell you, bullets are a not-insignificant portion of the expense, and the EPR projectiles are probably among the most expensive to make.

But let me steel man the argument that a huge chunk of the 4.5 billion is for ammo.

We'll have to make some assumptions.  First, that the NGSW cost about 50% more than their peers. I'll put the M5's peer as the IAR which costs the Corps $1300 per sample, and the M250's peer as the M249 (which it's intended to replace), which costs about $4087. So let's say the actual per-unit cost of the M5 is $1950 per, and the actual cost of the M250 is $6131 per.

Now we've got to break down that 250,000 units somehow.  Per the press conference, the intended amount of M5's to outfit the "close combat force" is 107,000 and the number of M250's is 13,000. So we're looking at a 89%-11% split, roughly. 89% of 250,000 is 222,500 and 11% is 27,500.

222,500 M5's at $1950 is $433,875,000 and 27,500 M250's at $6131 is $168,602,500. So that's $602,477,500 of the contract accounted for.

Let's be EXTRA GENEROUS and assume that the cost of spare parts amounts to 100% of the cost of the weapons.

That gets us to $1,204,955,000. We're still 3.3 billion dollars short.  Is all of that 3.3 billion dollars ammo?

Sig is selling the ammo to the civilian market currently at $80 per 20 rounds.  $4 per round is obviously not what the government will end up paying.  I would put that figure at closer to 50 cents a round (when you're talking millions of rounds) but let's be extra generous and say it's $1 per round, government cost.  Keep in mind, Sig is using 100% government supplied projectiles.  So the Army is paying Sig to load Army projectiles in Sig cases, this $1 doesn't even cover the full cost per round. That's easy math, 3.3 billion rounds of ammunition.

Now we have to figure in Lake City's production.  Let's conservatively say (and this is hysterical to me) that Lake City is only matching what Sig puts out.  Not doing something more realistic like 90/10 or 80/20. So we're at 6.6 billion rounds of ammunition.

Now factor in that this contract is for ten years, and those weapons will be delivered over the course of ten years. Let's say that Sig will deliver 25,000 weapons per year. So the cumulative fielded number of weapons in year one will be 25,000, year two will be 50,000, year three will be 60,000, etc. To make this math easy, we'll think of things in terms of weapon-years so we can break the ammo down per weapon, per year fielded.

25,000 + 50,000 + 75,000 + 100,000 + 125,000 + 150,000 + 175,000 + 200,000 + 225,000 + 250,000 = 1,375,000 "weapon-years".

6.6 billion rounds to cover 1,375,000 "weapon-years" means that each weapon will be firing 4800 rounds per year. When I was in, I felt lucky to fire a fifth of that per year.  Often, it was less.  And 4,800 rounds per year sounds like you're going to be going through two barrels a year with this new extreme high pressure ammunition.  That just doesn't square.  I see no way on earth those rifles from the initial batch will be able to fire 48,000 rounds over ten years. I don't think Sig will be putting out billions of rounds at all. I think that will fall to Lake City and will be outside the scope of the $4.5 billion contract.

This doesn't provide any hard numbers, but I'll add this from the press conference I linked earlier, which should be illuminating:



It's obvious that the Army's intent is to produce the vast majority of all 6.8x51 ammunition, they just need time to build the infrastructure at Lake City first.  I wonder if Winchester-Olin will run that, too?

Last, I'd like to point out this quote from Mathew Moss at Overt Defense:



That's a measly 4.5% of the 3.3 billion figure I used to steel man your argument, and seems like a much more likely number.

The only reasonable conclusion I can draw here is that this rifle is pants-on-head stupid expensive. I can't wait to see this covered in Rand Paul's Festivus fraud-waste-abuse report this year.
View Quote


I think doing math based on the max value of the contract is a fools errand. Take the MHS contract as an example: max value of the contract is $580 million. The Army said that the total number of pistols the services intended to purchase is 420,000 (195,000 Army, 130,000 Air Force, 60,000 Navy, 35,000 Marines). Divide the value of the contract by the number of pistols and you get $1,380.95. Actual unit cost according to the Marine Corps is $180. We're only actually spending $75,600,000 on guns; the rest is going to ammo, accessories, training, contractor support, and unused capacity in the contract.
Link Posted: 5/3/2022 2:30:34 PM EDT
[#6]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I wonder how much these payoffs are. They must be YUGE
View Quote


It's weird how they just showed up and started getting everything all of the sudden.  Did they hire the right ex generals or what?

Hopefully for contract stuff India MIM is banned.
Link Posted: 5/3/2022 2:55:49 PM EDT
[#7]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I think doing math based on the max value of the contract is a fools errand. Take the MHS contract as an example: max value of the contract is $580 million. The Army said that the total number of pistols the services intended to purchase is 420,000 (195,000 Army, 130,000 Air Force, 60,000 Navy, 35,000 Marines). Divide the value of the contract by the number of pistols and you get $1,380.95. Actual unit cost according to the Marine Corps is $180. We're only actually spending $75,600,000 on guns; the rest is going to ammo, accessories, training, contractor support, and unused capacity in the contract.
View Quote


I broke out the ammo separately in the post you're quoting.

As to the rest - are you arguing with a straight face that each M5 only costs about $1,300 but that we're piling $12,000 on top of that, per unit, in the form of accessories and training?

Yeah, no.  That's batshit.
Link Posted: 5/3/2022 3:18:37 PM EDT
[#8]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I broke out the ammo separately in the post you're quoting.

As to the rest - are you arguing with a straight face that each M5 only costs about $1,300 but that we're piling $12,000 on top of that, per unit, in the form of accessories and training?

Yeah, no.  That's batshit.
View Quote


I'm telling you that the max value of the MHS contract is $580 million and we're only spending $75 million, less than 8% of the total possible value of the contract, on the actual pistols. Is that batshit?
Link Posted: 5/3/2022 7:34:00 PM EDT
[#9]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
looks like they are going a whole different direction.

https://www.thefirearmblog.com/blog/wp-content/uploads/2019/10/JCB_4113a.jpg

they are putting loudeners on them.
View Quote


That is the Gd-OTS/True velocity/Beretta/Lonestar submission.  Not the SIG gun that won.
Link Posted: 5/4/2022 7:56:06 AM EDT
[#10]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I can't confirm or deny your numbers tho as a WAG I think you make a lot of sense.

I still see trouble ahead on the ammunition;  pressures & mass production of hybrid cases, barrel life, parts breakage to start with.

The only absolute upside I see to this program for the taxpayer is if he is sort of Fuddy like me and can eventually score some cheap bulk .277 diameter bullets for his .270 Winchester.
 
View Quote

The numbers laid out do make sense; I concur with the assessment that there will be issues and still see this as someone's stupid pet project. It may showcase new tech but will likely be ineffective, a large waste of resources, and stuck in a mindset applicable to past wars, not future ones.

That said, I too love me some .270 Win and would gladly buy up a bunch of projos when this all eventually fails to pan out.
Link Posted: 5/4/2022 8:53:08 AM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

The numbers laid out do make sense; I concur with the assessment that there will be issues and still see this as someone's stupid pet project. It may showcase new tech but will likely be ineffective, a large waste of resources, and stuck in a mindset applicable to past wars, not future ones.

That said, I too love me some .270 Win and would gladly buy up a bunch of projos when this all eventually fails to pan out.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
I can't confirm or deny your numbers tho as a WAG I think you make a lot of sense.

I still see trouble ahead on the ammunition;  pressures & mass production of hybrid cases, barrel life, parts breakage to start with.

The only absolute upside I see to this program for the taxpayer is if he is sort of Fuddy like me and can eventually score some cheap bulk .277 diameter bullets for his .270 Winchester.
 

The numbers laid out do make sense; I concur with the assessment that there will be issues and still see this as someone's stupid pet project. It may showcase new tech but will likely be ineffective, a large waste of resources, and stuck in a mindset applicable to past wars, not future ones.

That said, I too love me some .270 Win and would gladly buy up a bunch of projos when this all eventually fails to pan out.


I'm taking the fully optimistic approach hoping it lasts indefinitely and involves numerous bullet production overruns, redesigns and surplussing!!  
Link Posted: 5/4/2022 9:05:40 AM EDT
[#12]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I'm telling you that the max value of the MHS contract is $580 million and we're only spending $75 million, less than 8% of the total possible value of the contract, on the actual pistols. Is that batshit?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:


I broke out the ammo separately in the post you're quoting.

As to the rest - are you arguing with a straight face that each M5 only costs about $1,300 but that we're piling $12,000 on top of that, per unit, in the form of accessories and training?

Yeah, no.  That's batshit.


I'm telling you that the max value of the MHS contract is $580 million and we're only spending $75 million, less than 8% of the total possible value of the contract, on the actual pistols. Is that batshit?
Yep. This always gets GD wrapped around the axle. Max contract value or ceiling on an IDIQ isn't lump sum it's just the maximum allowed to spend over the life of the contract should the government choose too. That doesn't mean they will or they're obligated too. They'll issue discreet task orders for whatever they need on that IDIQ. You wanna know what they're spending or planning on spending on it? Look in the published budget documents every year.

But what do I know? I'm only a certified capture manager that has won multi-billion dollar idiq's before.
Link Posted: 5/10/2022 4:40:33 PM EDT
[#13]
I just read this today - May 4, 2022 Special Ops Magazine -

"We’re exploring several options to ensure that it hits what the gun aims at,” Gordon told Task & Purpose. “The system will adjust and potentially only fire when the muzzle lines up with its target. It will consider atmospheric conditions, and even automatically center the weapon using an internal system. We’re looking to get these capabilities ready as soon as possible.”

You'll need a green light to indicate shot is lined up? Or it'll automatic, and the fire control will be inhibited until conditions are considered optimal?  WTF?
Link Posted: 5/11/2022 11:05:51 AM EDT
[#14]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I just read this today - May 4, 2022 Special Ops Magazine -

"We're exploring several options to ensure that it hits what the gun aims at," Gordon told Task & Purpose. "The system will adjust and potentially only fire when the muzzle lines up with its target. It will consider atmospheric conditions, and even automatically center the weapon using an internal system. We're looking to get these capabilities ready as soon as possible."

You'll need a green light to indicate shot is lined up? Or it'll automatic, and the fire control will be inhibited until conditions are considered optimal?  WTF?
View Quote
With the vortex firing solution computer, it is not beyond reason that they make a tracking point/trax3 fire control system for the rifle. https://talonprecisionoptics.com/technology/modes/


Link Posted: 5/11/2022 2:17:05 PM EDT
[#15]
That ammo is going to be expensive to produce with that 2 part steel/brass case.
Page / 11
Next Page Arrow Left
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top