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GA:Gunmaker aims at $1 billion military contract
Josey1
Member Posts: 9,598 ✭✭
Gunmaker aims at $1 billion military contract
The Associated Press - COLUMBUS, Ga.
Locating a factory near Fort Benning could give a German gun manufacturer an advantage as it tries to land a $1 billion contract for the U.S. infantrys next-generation rifle, a company official said.
Heckler & Koch began research and development last year on the XM8 Lightweight Assault Rifle, which ultimately could replace the U.S. Armys M4A1 carbine and M16A2 rifle. The M16 has been manufactured by Colt since 1964.
Peter Simon, vice president of the gunmakers U.S. operations in Sterling, Va., said Columbus was a natural fit with its proximity to a major infantry training installation.
At Fort Benning, you have this great diversity of units, said Simon, a retired Army lieutenant colonel whose tours of duty included Fort Benning. You have mechanized infantry from the 3rd Infantry Division, and you have the Rangers, and youve got several other units that might be capable of being part of the test bed.
Heckler & Koch, which is building a $20 million plant on 25 acres in Muscogee Technology Park, will use the states Quick Start training program at Columbus Technical College, Simon said.
The company is scheduled to break ground by November, with production beginning by the end of 2004. It expects to employ at least 80 people initially for the forging, molding and machining jobs, but that number could climb to as high as 500, Simon said.
The company is eligible for local property tax breaks and will receive $300,000 in state incentives. It also is expected to seek a bond issue from the Columbus Development Authority to build the 50,000-square-foot plant.
The biggest driver was the economic viability of the agreement that we could strike with our host location, Simon said. But no one else had Fort Benning and nowhere else did we have that combination of proximity to our primary customer base, which is the military and law enforcement, and the economic business climate we were after.
Other states under consideration for the plant were Virginia, Florida, South Carolina and Texas, he said.
One piece of work includes a $4.8 million contract with the Transportation Security Administration to make 9,600 pistols over four years.
Simon said other commercial and government contracts are in the pipeline.
The major one would be the assault rifle contract. Heckler & Koch is a subcontractor for Minneapolis-based Alliant Techsystems, a defense contractor with $2.1 billion in annual sales, which won the bidding war for the research and development contract in 2001.
Theres no guarantee of a full-production contract for 800,000 or more rifles, but retired Army Col. Stan Skaife, a former Alliant consultant who helped convince Heckler & Koch to locate in Columbus, said it would be the firms contract to lose.
Once they get all of the development done, Im sure the government can go out and bid it again, and Im sure they will, Skaife said. But if you wind up doing the development contract, and then you lose the production contract, shame on you. This is one of the premiere rifle companies in the world.
Information from: Columbus Ledger-Enquirer
http://www.accessnorthga.com/news/ap_newfullstory.asp?ID=17249
"If cowardly and dishonorable men sometimes shoot unarmed men with army pistols or guns, the evil must be prevented by the penitentiary and gallows, and not by a general deprivation of a constitutional privilege." - Arkansas Supreme Court, 1878<P>
The Associated Press - COLUMBUS, Ga.
Locating a factory near Fort Benning could give a German gun manufacturer an advantage as it tries to land a $1 billion contract for the U.S. infantrys next-generation rifle, a company official said.
Heckler & Koch began research and development last year on the XM8 Lightweight Assault Rifle, which ultimately could replace the U.S. Armys M4A1 carbine and M16A2 rifle. The M16 has been manufactured by Colt since 1964.
Peter Simon, vice president of the gunmakers U.S. operations in Sterling, Va., said Columbus was a natural fit with its proximity to a major infantry training installation.
At Fort Benning, you have this great diversity of units, said Simon, a retired Army lieutenant colonel whose tours of duty included Fort Benning. You have mechanized infantry from the 3rd Infantry Division, and you have the Rangers, and youve got several other units that might be capable of being part of the test bed.
Heckler & Koch, which is building a $20 million plant on 25 acres in Muscogee Technology Park, will use the states Quick Start training program at Columbus Technical College, Simon said.
The company is scheduled to break ground by November, with production beginning by the end of 2004. It expects to employ at least 80 people initially for the forging, molding and machining jobs, but that number could climb to as high as 500, Simon said.
The company is eligible for local property tax breaks and will receive $300,000 in state incentives. It also is expected to seek a bond issue from the Columbus Development Authority to build the 50,000-square-foot plant.
The biggest driver was the economic viability of the agreement that we could strike with our host location, Simon said. But no one else had Fort Benning and nowhere else did we have that combination of proximity to our primary customer base, which is the military and law enforcement, and the economic business climate we were after.
Other states under consideration for the plant were Virginia, Florida, South Carolina and Texas, he said.
One piece of work includes a $4.8 million contract with the Transportation Security Administration to make 9,600 pistols over four years.
Simon said other commercial and government contracts are in the pipeline.
The major one would be the assault rifle contract. Heckler & Koch is a subcontractor for Minneapolis-based Alliant Techsystems, a defense contractor with $2.1 billion in annual sales, which won the bidding war for the research and development contract in 2001.
Theres no guarantee of a full-production contract for 800,000 or more rifles, but retired Army Col. Stan Skaife, a former Alliant consultant who helped convince Heckler & Koch to locate in Columbus, said it would be the firms contract to lose.
Once they get all of the development done, Im sure the government can go out and bid it again, and Im sure they will, Skaife said. But if you wind up doing the development contract, and then you lose the production contract, shame on you. This is one of the premiere rifle companies in the world.
Information from: Columbus Ledger-Enquirer
http://www.accessnorthga.com/news/ap_newfullstory.asp?ID=17249
"If cowardly and dishonorable men sometimes shoot unarmed men with army pistols or guns, the evil must be prevented by the penitentiary and gallows, and not by a general deprivation of a constitutional privilege." - Arkansas Supreme Court, 1878<P>