TheGunBlog.ca — The Globe and Mail’s article today exploring General Dynamics Corp.’s monopoly supplying firearm ammunition to the Canadian military and federal agencies dives into defence purchases and industrial history.
The Globe published “Ammonopoly: General Dynamics’ Sweet Deal to Supply Canada’s Ammunition” online this morning. The 2,500-word story by Matthew McClearn appears in the paper’s Report on Business magazine.
It looks at how Canada’s leaders have sought to balance security of munitions supply and manufacturing efficiency from the 1870s to today.
It says taxpayers pay more than $70 million annually to the Canadian subsidiary of Virginia-based General Dynamics to guarantee the supply of small-arms cartridges from three factories in Quebec, on top of more than $160 million a year for the ammo itself.
Unlike many large government contracts that invite competitive bids, General Dynamics Ordnance and Tactical Systems Canada is the sole supplier of ammo for rifle and handgun ammunition, the magazine reported.
The company’s website says it produces NATO-calibre cartridges in 9 mm, 5.56 mm, 7.62 mm and 12.7 mm. It also makes artillery ammo, and grenades, explosives and simunition rounds.
The Ministry of National Defence is reviewing its munitions supply program, the article said.
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