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Tuesday, April 10, 2012

DHS buys 405 million rounds of .40 JHP - Domestic prices of .40 JHP increase

By Tiffany Gabbay

The Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) has awarded defense contractor ATK with an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement for .40 caliber hollow point ammunition. According to an official ATK press release, U.S. agents will receive a maximum of 450 million rounds over a five-year period.

The order may seem unusually high, but gun experts I talked to said it is not necessarily unusual and simply reflects a long-running practice by DHS and law enforcement agencies to use any remaining budget surplus on items routinely used and that would not be called into question. The idea being that if an agency does not use its entire budget in expenditures, the government will lower its budget the following year.

On the other hand, the decreased retail availability for hollow points does drive up demand, and hence price for such ammunition. Whether the consequence is an intended one, remains to be seen.


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