US Army Awards $4.17 Billion Contract to Upgrade Its Ammunition Plants as 155mm Shell Output Lags

The US Army awarded 11 companies a multiple-award task-order contract with a shared ceiling of $4.17 billion to design, build and commission production capacity at government-owned, contractor-operated ammunition plants. Funding will be determined for each order. The five-year contract covers seven sites, with individual task orders available for explosives and propellant lines, projectile metal parts, cartridge cases, and facilities that load, assemble and pack ammunition. The award comes as an inspector general evaluation found monthly 155 mm production at about 36,000 rounds in March 2026 against a target of 100,000, after delays in bringing new metal-parts capacity into production.