Defense contractor Alliant Techsystems (NYSE: ATK ) announced in a press statement Friday that the U.S. Navy has awarded the company a $12-million contract to provide 30mm MK266 ammunition. The potential value of five-year, indefinite delivery indefinite quantity contract grows to up to $41 million if the Navy awards follow-up contracts.
The MK266 ammunition, used in Alliant's MK446 Mod 2 Gun Weapon System, is used in several of the Navy's ship classes, including the San Antonio-class Landing Platform Dock line, as well as on the new Littoral Combat Ships. Alliant expects the first deliveries of the ammunition to begin in 2014.
Alliant's Armament Systems division Vice President and General Manager Bruce DeWitt expressed his confidence in the company's ammunition production, saying, "Our medium-caliber expertise includes a full spectrum of highly effective and accurate tactical ammunition for air, ground and sea platforms as well as cost-effective training ammunition that provides a realistic experience for the warfighter."
Shares of Alliant rose 0.8% in midday trading in response.