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AOAV: all our reportsUS Department of Defence contract analysis

Top ten companies awarded US DoD small arms contracts during the War on Terror.

This report is part of AOAV’s investigation into the DoD’s small arms expenditure during the War on Terror. Our research found many discrepancies between the contracts published on the DoD’s website and those found on the Federal Procurement Database System- research that can be read here. For information on what a small arm is, please see here. To understand more about US DoD contracts visit here. The investigation also included an examination of US expenditure for small arms for Iraq, which can be read here, and Afghanistan, see here.

The following ten companies have been major recipients of the $40.3 billion worth of small arms related contracts (maximum level) issued during the War on Terror.

  1. Alliant Techsystems – Total Value: $21,977,118,613
  2. DRS Technologies Inc. – Total Value: $ 3,251,224,478
  3. BAE Systems Inc. – Total Value: $2,761,670,581
  4. Knight’s Armament Company – Total Value: $ 1,782,974,456
  5. General Dynamics – Total Value: $ 1,626,048,701
  6. Colt’s Manufacturing Company – Total Value: $1,372,567,795
  7. FN Herstal – Total Value: $995,194,319 
  8. Insight Technologies Inc. – Total Value: $790,071,945
  9. Olin Corp – Total Value: $ 612,415,840
  10. American Ordnance LLC. – Total Value: $483,022,354

Company breakdown
1. Alliant Techsystems [including subsidiaries Alliant Lake City Small Calibre Ammunition Co, Alliant Ammunition and Powder Co, Federal Cartridge Company].
Headquarters: Virginia
CEO: David W. Thompson
No. of DoD awarded contracts: 101
Total Value: $21,977,118,613
Comments:
> Alliant Techsystems is the largest supplier of all munitions to the DOD.
> It reportedly operates in 23 congressional districts in US, and has international offices in 33 countries including Israel, Saudi Arabia, Jordan, Malaysia, Chile, Pakistan, India, Greece and Turkey.
> Lake City Small Calibre ammunition factory is owned by the US Military but managed by Alliant Techsystems.

2. DRS Technologies Inc.
Headquarters: Virginia
CEO: William J. Lynn III.
No. of awarded DoD contracts: 8
Total Value: $3,251,224,478
Comments:
> CEO is the former US Deputy Secretary of Defence & former lobbyist for Raytheon, an American defence contractor.

3. BAE Systems Inc.
Headquarters:: London, UK
CEO: Ian King
No. of awarded DoD contracts: 8
Total Value: $2,761,670,581

4.Knight’s Armament Company
Headquarters: Florida
CEO: C. Reed Knight
No. of awarded DoD contracts: 15
Total Value: $1,766,340,758

5. General Dynamics
Headquarters: Virginia
CEO: Phebe Novakovic
No. of DoD awarded contracts: 36
Total Value: $1,626,048,701
Comments:
> One of the largest military contractors to the Pentagon and many other foreign governments.
> CEO Phebe Novakovic is reportedly formerly of the CIA

6. Colt’s Manufacturing Company
Headquarters: Connecticut
CEO: Dennis Veilleux
No. of DOD awarded contracts: 24
Total Value: $1,372,567,795
Comments:
> Now bankrupt.
> A Colt manufactured M16A4 assault rifle bought by the DOD was reportedly found on Islamic State militants in Iraq/Syria. There is absolutely no evidence that Colt was involved in a direct sale, however.

7. FN Herstal [including subsidiaries FN Manufacturing, FN USA, U.S. Repeating Arms Company (Winchester), Browning Arms Company]
Headquarters: Herstal, Belgium
CEO: Mark Cherpes; VP Tom Loper
No. of DoD awarded contracts: 42
Total Value: $995,194,319
Comments:
>VP Tom Loper is a former US Army Col.
>In 2010, DoD was reported to have filed a lawsuit against FN for the failure to deliver a pre-paid order. FN agreed to pay $1,117,872 to resolve allegations.
>FN Herstal has reportedly delivered their weapon systems to States with poor histories of human right violations. In 2009, Colonel Gaddafi’s elite 32nd ‘Khamus’ Brigade in Tripoli received a number of FN made small arms including the F2000 and P90 assault rifles.
> American FN manufactured M16A4 assault rifles have been found on Islamic State militants in Iraq and Syria, along with an FN Herstal Browning high-power 9x19mm pistol. There is absolutely no evidence of direct supply of weapons, however.

8. Insight Technologies Inc.
Headquarters: New Hampshire
CEO: Rick Davis
No. of awarded DoD contracts: 14
Total Value: $790,071,945

9. Olin Corp.
Headquarters: Missouri
CEO: Joseph D. Rupp
No. of DoD awarded contracts: 23
Total Value: $612,415,840
Comments:
> Used to own Winchester Arms Company before they sold it to FN Herstal in 1989 after Winchester went bankrupt.

10. American Ordnance LLC.
Headquarters: Kansas
CEO: Thomas Rudy
No. of awarded DoD contracts: 10
Total Value: $483,022,354 

Other companies of note:

Sabre Defence Industries LLC
Headquarters: Nashville
CEO: Guy Savage
No. of awarded DoD contracts: 4
Total Value: $40,042,964
Comments:
> Owned by sister company Sabre Defense Industries Ltd., a British Company.
> Both companies shut down after joint British and US investigations for being involved in a multi-million-pound racket exporting weapons to the Middle East in false bottom shipping containers, finding corrupt regulators and forging shipping documents.
> Four Sabre employees pleaded guilty to charges of conspiracy and illegal arms trafficking.
> Savage, who was found with 500 ‘complete’ rifles in his home, faces extradition and 20 years in prison for international firearms and trafficking violations.  

Beretta
Headquarters:
CEO: Exec VP Dr Franco Gussalli Beretta
No. of awarded DoD contracts: 3
Total Value: $78,696,453
Comments:
>Fabbrica d’Armi Pietro Beretta reportedly shipped roughly $11.9 million of small arms, including shotguns, pistols and semi-automatic rifles, via Malta, to the Libyan General People’s Committee for Public Safety. The company reportedly marked the shipment as non-military items, so the permit for the transport was issued by a local authority instead of the Ministry of Foreign Affairs in Rome, which would have subjected the export to laws regarding military items and undertaken a risk assessment.

For the data on 14 years of DoD contracts for small arms, ammunition and attachments, please go here.