U.S. Gun Manufacturer Awarded $4 Billion Army Contract for Next Generation Squad Weapons

WASHINGTON, D.C. – The U.S. Army announced the award of a 10-year firm-fixed-price follow-on production contract to Sig Sauer, Inc for the manufacture and delivery of two Next Generation Squad Weapon variations (the XM5 Rifle and the XM250 Automatic Rifle) and the 6.8 Common Cartridge Family of Ammunition.

This award was made following a rigorous 27-month prototyping and evaluation effort that included numerous technical tests and Soldier touch points of three competing prototype systems.

The value of the initial delivery order on the contract is $20.4 million for weapons and ammunition that will undergo testing. The contract includes accessories, spares and contractor support. It also provides the other Department of Defense services and, potentially, Foreign Military Sales countries the opportunity to purchase the NGSW weapons.

The XM5 Rifle will replace the M4/M4A1 carbine within the close combat force, and the XM250 Automatic Rifle is the planned replacement for the M249 Squad Automatic Weapon

Both weapons provide significant capability improvements in accuracy, range and overall lethality. They are lightweight, fire more lethal ammunition, mitigate recoil, provide improved barrel performance, and include integrated muzzle sound and flash reduction.

"Congrats to SIG SAUER on winning an estimated $4.5 billion contract with the U.S. Army! This award reaffirms the invaluable role that New Hampshire businesses play in our national defense," said New Hampshire Senator Jeanne Shaheen. "Army Soldiers will be carrying New Hampshire-made weapons for decades!"

Both weapons fire common 6.8 millimeter ammunition utilizing government provided projectiles and vendor-designed cartridges. The new ammunition includes multiple types of tactical and training rounds that increase accuracy and are more lethal against emerging threats than both the 5.56mm and 7.62mm ammunition.

The XM5 and XM250 will be paired with the XM157 Fire Control, a ruggedized advanced fire control system that increases accuracy and lethality for the close combat force. The XM157 integrates a number of advanced technologies, including a variable magnification optic (1X8), backup etched reticle, laser rangefinder, ballistic calculator, atmospheric sensor suite, compass, Intra-Soldier Wireless, visible and infrared aiming lasers, and a digital display overlay. It is produced by Sheltered Wings Inc. d/b/a Vortex Optics, Barneveld, Wisconsin.