Rapid City Ammunition Company Gets $50M Contract With Navy

RAPID CITY, S.D. (AP) – A Rapid City company has landed a $50 million federal contract to provide ammunition to the U.S. military.

The U.S. Naval Sea Systems Command announced last week that Black Hills Ammunition is contracted to provide 5.56-millimeter long-range ammunition for U.S. combat forces to use.

The ammunition company will absorb production expenses over the contract’s five-year length. The government won’t necessarily order as much ammunition as it requires the company to produce with contract money.

Co-owner Jeff Hoffman says that although his company may not ultimately reap the full $50 million in the contract, the deal still provides financial stability and a resulting boost to the local economy.

Black Hills Ammunition designs, manufactures and markets ammunition for weapons ranging from sporting firearms to military sniper rifles.

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