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Discussion Starter · #1 ·
My son's best friend has worked at Federal (head quartered in Minnesota) for years. He often can get me factory 2nds at a very low cost all of which have worked just fine at least for plinking around. What I was told got me thinking. Federal is considering NOT renewing their contracts with the US government. Two reasons. First of course they get a better price than anybody else due to quantities and buying power. But the most interesting reason is that over the last year or so they have been attempting to buy every production round in all the military calibers that Federal can produce. 223 etc. Leaving little if any for public sale. Question has to be, do they really need all this ammo? or are they just doing a work around for gun control by just making ammo unavailable and/or unaffordable?
 

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Good for Federal I hope they stop selling to the Gov't .... yeah might be a little bit of loss at first but they will make up for it when they sell same ammo at a higher cost to regular consumers... I agree with Todd^^^^ ...
 

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I love a good rumor :35:
 

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Though their might be some principled reason behind this rumored business decision,
there is probably also a distinct financial aspect. In the present shortage environment
they likely can keep production lines busy and sell at a good profit without the need
to enter into a low-bid government contract. Those sorts of contracts keep a floor
below which business /production can't fall but may not produce profits. So, if these contracts
are no longer needed, they may be making a strictly economic choice.

Uncle of course has other sources of ammo, but could if he chose to, do what was done
during WWII and compel factories to produce the materiel needed for the governmental purpose.

Meanwhile, I hope it was a business decision and not an fundamentally unpatriotic one.
I see no principle of love of country in a policy which would deny the government what it needs.
 

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C'mon guys! It's these types of "rumors" that just make our situation worse! We've seen the gov't order numbers as well as first-hand reports from ammo companies to dispel all this chicken-little business! If everyone would cool their jets, the supply should catch up with demand by the end of the year. No sense perpetuating the problem!
 

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Well instead of being able to go punch paper with my firearms. All I've been able to do is use them for paperweights & doorstops because I can't get any ammo.

If you can not take the firearms out of the hands of the law abiding citizens then dry up the ammo :hand19:

So in the runaround . . . you win Mr. President! :party:
 

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Though their might be some principled reason behind this rumored business decision,
there is probably also a distinct financial aspect. In the present shortage environment
they likely can keep production lines busy and sell at a good profit without the need
to enter into a low-bid government contract. Those sorts of contracts keep a floor
below which business /production can't fall but may not produce profits. So, if these contracts
are no longer needed, they may be making a strictly economic choice.

Uncle of course has other sources of ammo, but could if he chose to, do what was done
during WWII and compel factories to produce the materiel needed for the governmental purpose.

Meanwhile, I hope it was a business decision and not an fundamentally unpatriotic one.
I see no principle of love of country in a policy which would deny the government what it needs.
Hop,
I believe a true patriot supports his country and it's people, not the government ( which can be a quite different thing ). Don't want to sideline the thread or start an argument about semantics, just would like for you to think about that.
 

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I would like to see/hear someone of authority in Federal come out and tell us what's going on.
 

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I would like to see/hear someone of authority in Federal come out and tell us what's going on.
From their website...

Why is ammunition in certain calibers so hard to find?

The current market and environment is causing stronger than usual demand for products in our industry.

Why are you selling all of your ammunition to the DHS?

The Department of Homeland Security contract makes up a very small percentage of our total ammunition output. This contract is not taking ammunition away from civilians. The current increase in demand is attributed to the civilian market. Our production volumes on government contracts have been stable since the mid-2000s.

Are certain contracts taking ammunition away from civilians?

No. We remain committed to serving all channels of our business. The majority of our product serves the commercial market.

Federal Premium Ammunition - FAQ
 

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Close enough for me.
 

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Discussion Starter · #13 ·
From their website...

Why is ammunition in certain calibers so hard to find?

The current market and environment is causing stronger than usual demand for products in our industry.

Why are you selling all of your ammunition to the DHS?

The Department of Homeland Security contract makes up a very small percentage of our total ammunition output. This contract is not taking ammunition away from civilians. The current increase in demand is attributed to the civilian market. Our production volumes on government contracts have been stable since the mid-2000s.

Are certain contracts taking ammunition away from civilians?

No. We remain committed to serving all channels of our business. The majority of our product serves the commercial market.

Federal Premium Ammunition - FAQ
I've worked with enough very large companies to know that circumstances require carefully worded responses that are not necessarily accurate due to what is NOT said. "Homeland Security" is a very small market when compared to the entire military and government structure. Federal makes a huge amount of ammo from 22 cal to shotgun ammo. I'm not crying "the sky is falling in" but chicken little may be in the wings some place and this time he could be right.
 

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Even low-bid government contracts provide a steady sourse of income to most businesses.
 

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I don't believe that one. Business is business and the goverment is a good customer.
 

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I believe it is hearsay. Federal, Spear and CCI are part of ATK and the majority of all ammo purchased by the government is contracted through ATK.......ATK has the means to produce up to 1.6 billion rounds of ammo per year.
 

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Discussion Starter · #17 ·
I believe it is hearsay. Federal, Spear and CCI are part of ATK and the majority of all ammo purchased by the government is contracted through ATK.......ATK has the means to produce up to 1.6 billion rounds of ammo per year.
For the various Government agencies to purchase all 1.6 Billion rounds would only take "chump change" and besides were only talking 223, 308, 7.62 etc. I do however agree that if Federal cuts off selling to the government groups it's motivated more by profit that anything else.
 
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On the topic of Federal ammo, LGS here had a full pallet of Federal ammo cans this morning - 420rds 62g 5.56 NATO in stripper clips - for $200 ea. Selling steadily but not flying off the shelves as in the past... it shouldn't at almost .50/rd.. The two stores also had a good selection of ARs and AKs at non-inflated prices. One had a good supply of Troy and Colt 30-rds at normal price with no limits on purchases.

I saw that S&W M&P with a composite lower for the first time (rack full of them at <$800)... no thanks.

I'm hoping this is a sign that the panic buying is over - but probably not, as I saw a guy buying an entire shelf of Tenex .22 at $15 per 50! I paid the same for a couple boxes of .45ACP.
 

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I've worked with enough very large companies to know that circumstances require carefully worded responses that are not necessarily accurate due to what is NOT said. "Homeland Security" is a very small market when compared to the entire military and government structure. Federal makes a huge amount of ammo from 22 cal to shotgun ammo. I'm not crying "the sky is falling in" but chicken little may be in the wings some place and this time he could be right.
I agree with you. I've worked with and for some very large companies and work for a very large company right now. Everything that is officially released is carefully worded. That's the reason common folk, like me, are not allowed to speak to the press on behalf of the company. I'm just posting the company's official response rather than something said by someone who works there and heard something.
 

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I love a good rumor :35:
Correct;
Once again we have proven that the only thing better than the internet for starting a rumor,is a bunch of third graders sitting in a circle.
WAIT; I was wrong..the internet IS the best place for rumors.

BTW; see my new thread about the alien invasion of earth by creatures who follow Karl Marx. Or is it Groucho??:image035::yup:
 
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