U.S. Navy Awards $28M Contract to Black Hills Ammunition for Specialized 5.56mm Rounds
The U.S. Navy has awarded a $28 million contract to Black Hills Ammunition Inc. for the production of specialized 5.56mm MK255 MOD 1 ammunition, designed to reduce ricochet and over-penetration. This firm-fixed-price contract, managed by the Naval Surface Warfare Center, is set to run through January 2031 and was awarded as a 100% Small Business Set-Aside, with funding from the fiscal 2026 Defense procurement budget.
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The U.S. Navy has awarded Black Hills Ammunition Inc. a $28 million contract for the production of 5.56mm reduced ricochet limited penetration MK255 MOD 1 ammunition. This firm-fixed-price contract, managed by the Naval Surface Warfare Center, Crane Division, is an indefinite-delivery, indefinite-quantity agreement scheduled to run through January 2031.
The contract was awarded to the Rapid City, South Dakota facility, with $455,664 in fiscal 2026 Defense procurement funding obligated at the time of the award. The MK255 MOD 1 round is specifically designed to minimize ricochet and over-penetration in training and operational environments, making it suitable for naval security forces and military police units. The procurement was conducted as a 100% Small Business Set-Aside, receiving four competitive offers.
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