The US Army has awarded 11 companies a five-year, $4.17-billion multiple-award framework contract to compete for projects aimed at upgrading and modernising seven government-owned ammunition manufacturing facilities across the United States.
Scheduled to run through November 2031, the programme covers new facility construction, production-line modernisation, automation, advanced technology integration, and infrastructure maintenance to strengthen domestic ammunition manufacturing capabilities.
The seven facilities include Holston Army Ammunition Plant in Tennessee and Radford Army Ammunition Plant in Virginia, both involved in explosives and propellant production. Lake City Army Ammunition Plant in Missouri is a major manufacturer of small-calibre ammunition, while the Iowa Army Ammunition Plant specialises in loading and assembling medium- and large-calibre ammunition.
The programme also covers Scranton Army Ammunition Plant in Pennsylvania, which manufactures artillery ammunition components; Quad City Army Ammunition Plant in Illinois, which produces large-calibre cartridge cases; and Milan Army Ammunition Plant in Tennessee.
Contract Awardees and Modernisation Scope
The selected contractors include major engineering, construction, and defence companies such as Clark Construction Group, Burns & McDonnell, Hensel Phelps, Alberici Constructors, MC Dean, J Kokolakis Contracting, Bering-Weston JV, Applied Research Associates, and Parsons Government Services.
The remaining awardees are BAE Systems Ordnance Systems and MSM North America, both of which have experience operating or developing ammunition manufacturing facilities.
Individual task orders will establish specific project requirements, locations, and funding allocations. The contracts were awarded by the Army Contracting Command in Rock Island, Illinois. However, the announcement did not disclose initial funding commitments or identify the projects scheduled to receive priority.
CSG’s Role in Expanding US Artillery Production
Among the selected companies is MSM North America, the US subsidiary of Czechoslovak Group (CSG), which is already executing a US Army contract valued at up to $635 million to develop the Future Artillery Complex in Iowa.
The additional framework agreement comes as the US Army accelerates efforts to expand domestic 155mm artillery ammunition production and address manufacturing bottlenecks.
According to a US Department of Defense Inspector General report, monthly 155mm ammunition production reached approximately 36,000 rounds in March 2026, significantly below the previously established target of 100,000 rounds per month by October 2025.
The report identified projectile manufacturing as the primary production constraint. It also highlighted difficulties at a contractor-operated facility in Mesquite, Texas, which was unable to manufacture metal components that met US Army specifications.
To increase monthly production capacity to 140,000 rounds by December 2027, the Army plans to modernise the existing Iowa Army Ammunition Plant and establish two additional manufacturing facilities in Kansas and Arkansas.
Separately, MSM North America’s Future Artillery Complex in Iowa is expected to commence operations in 2029, with the potential to manufacture up to 36,000 155mm artillery rounds per month.
These investments form part of the US Army’s broader effort to strengthen its ammunition industrial base, eliminate production constraints, and increase the long-term availability of artillery ammunition.
