The U.S. Army plans to purchase a big batch of medium caliber rounds at a cost of $1,8 billion, according to a newly released report from the U.S. Department of Defense (DoD).

The DoD announced on 6 September that Alliant Techsystems Operations LLC (Orbital ATK) and General Dynamics Ordnance and Tactical Systems will receive a $1,8 billion contract for the procurement medium caliber ammunition.

Two companies will compete for each order of the $1,850,000,000 fixed-price with economic-price-adjustment contract for the procurement of 20mm, 25mm, 30x113mm, and 30x173mm medium caliber ammunition, added in the DoD’s statement.

Work locations and funding will be determined with each order, with an estimated completion date of Sept. 5, 2023. Two bids were solicited with two bids received.

The ammunition includes rounds which can be used in primary armament on the U.S. Army Bradley fighting vehicle, anti-materiel rifle, AH-64 Apache helicopter and other.

For example,  25 mm caliber is a specific size of cannon or autocannon ammunition for primary armament on the U.S. Army M2/M3 series Bradley fighting vehicle. Several sub-types of the 25 mm ammunition are available — the most common being armor-piercing, high-explosive, sabot, tracer, and practice rounds.

30 mm ammunition is typically not used against personnel, but rather as an anti-materiel or armor-piercing round. Rounds of this size can be effective against armored vehicles as well as fortified bunkers.

The 30x113mm is designed for full operability in the 30mm M230 (AV-30) Chain Gun Turret used on the AH-64 Apache helicopter.  The 30x113mm lightweight ammunition is compatible with the AV-30 (M230) Chain Gun turret. The AV-30 turret can be integrated on a variety of light vehicle applications including Pandur, M113, and Piranha.

The 30x173mm ammunition can use in the primary armament in a variety of vehicles include a new combat module of Stryker. This rounds also can be effective against armored vehicles as well as fortified bunkers.