When Cerberus Capital Group started assembling The Freedom Group of firearms-related companies TTAG pointed out the conglomerate’s core strength: schmoozing politicians. Lest we forget, Cerberus bought Chrysler, drove it into bankruptcy and then convinced politicians to fork over $12.5b in bailout bucks, racking-up a $1.3b loss for U.S. taxpayers—all while leaving Cerberus relatively unscathed. We reckoned The Freedom Group would leverage its political juice to win military contracts, while “rationalizing” consumer products. And so they have. Remington today announced that it’s scored a $79.7m contract to supply United States Special Operations Command (USSOCOM) with 5,150 Precision Sniper Rifles (“PSR”) equipped with Advanced Armament Corporation muzzle breaks and suppressors and 4.6 million rounds of Barnes Bullets precision ammunition. [Press release after the jump.] As Montell Jordan might say, this how they do it. So . . . Marlin?
Madison, N.C. –The United States Special Operations Command (USSOCOM) has awarded the Remington Defense Division of Remington Arms Company, LLC (“Remington”) – a subsidiary of Freedom Group Inc. (“FGI”) – a $79.7 million dollar Firm Fixed-Priced (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract to provide up to 5,150 Precision Sniper Rifles (“PSR”) and 4.6 million rounds of precision ammunition. This award is the result of full and open competition conducted by USSOCOM.
Remington Defense will serve as the system integrator for the PSR, which is a durable sniper system capable of providing accurate target engagement and modular capabilities in barrel length and caliber conversion. Remington Defense will utilize two other FGI companies in the production process; Barnes Bullets will produce ammunition and Advanced Armament Corporation (AAC) will manufacture muzzle breaks and suppressors.
Remington Defense already holds the U.S. Army’s $28M contract for 3,600 XM2010 enhanced sniper rifle systems. Remington Defense will be able to leverage its sniper management, workforce, and supply base to ensure the delivery of quality and highly-effective PSR systems.
The PSR award further establishes FGI’s dominance in sniper system expertise, technology, and manufacturing capability for the U.S. Armed Forces and Law Enforcement Agencies. FGI has the ability to produce a fully integrated sniper system consisting of firearm, suppressor, and ammunition products. FGI’s capabilities provide customers with unparalleled product affordability, quality, and technology.
“We are proud to provide our military Special Operations Forces with top-of-the-line technology,” said George Kollitides II, Chairman and Chief Executive Officer of Freedom Group and Remington Arms. “The expertise, quality and centuries of experience at Remington are clearly recognized. This award not only represents a new era in precision sniper systems, but also proves that an American manufacturing company can still expand its product offerings and compete in this modern age to provide best in class weapons, ammunition, and suppressors to our troops defending freedom around the globe.”
“Members of our armed forces, and especially those on Special Operations teams, are our Country’s first line of defense,” said John Day, Vice President and General Manager of Military and Law Enforcement. “They deserve the highest quality and newest technology available. Every aspect of the PSR was designed with this in mind.”
Over the past four years, Remington Defense invested in its ability to compete in the government small arms space by modernizing production facilities, focusing research and development on end-user requirements, and ensuring consistent and repeatable quality in a high-volume, high-mix manufacturing environment.
About Remington Arms Company, LLC
Remington Arms Company, LLC, (“Remington”) headquartered in Madison, N.C., designs, produces and sells sporting goods products for the hunting and shooting sports markets, as well as solutions to the military, government and law enforcement markets. Founded in 1816 in upstate New York, the Company is one of the nation’s oldest continuously operating manufacturers. Remington is the only U.S. manufacturer of both firearms and ammunition products and one of the largest domestic producers of shotguns and rifles. The Company distributes its products throughout the U.S. and in over 55 foreign countries. More information about the Company can be found at www.remington.com.