...and they're getting 346 of the new rifles for $4.3 million.
Hmm...that's about $12,500 a piece for off-the-shelf rifle components and a top-of-the-line Nigthforce scope.
Assuming they're just going to Midway USA and paying retail for the scope and rings, that's about $4000. A Remington 700 long action should be about $500, and a hefty barrel, say about $2000. Throw in another couple of thou for a chassis, and you're up to about $8500. And these prices are about what the man on the street would pay, buying a la carte with no volume discount and no bidding by vendors.
Wish they'd contacted me. I'd have built these for, oh, say a mere $3.5 million. :wink:
Military purchases of small arms usually includes parts for the full life span of the firearm. So if they expect the rifle to last 30k rounds, then the factor in likely parts needed for that round count (or number of years in service), and those parts are included. Acquisition also includes armorers tools, training, manuals (both armorer & user), cases, magazine pouches, etc.
These days it's the full kit for the lifespan of the weapon. They bundle the entire system and buy that from one vendor. The reason they do this is to make managing suppliers much more streamlined. Why have a staff of a dozen people managing every detail associated with that weapon (for decades) when you can just have the supplier manage it for you.
Purchasing organizations have found buying the "full kit" is about the same cost (item per item), but FAR better for managing the full program. There's only one throat to choke when things go wrong. When you do it piece meal, then when things go wrong, you get into a never ending circle of suppliers pointing fingers at other suppliers. If you buy the full kit from one supplier, then it's their problem, not yours. Problems get solved about 90% sooner, because that one supplier is on the hook for non-performance.
So in that price tag, I'm sure there is a LOT of stuff that is not mentioned in the article that's focused primarily on the weapon.
With the M17 they took it even further, and Sig is even supplying the ammunition for potentially the full duration of the M17's service.