Most likely its cover for sending it overseas.
After all, what are they going to do, arm the post office?
Possibly, but at least some of the contracts are spread over five years. It could be a way of establishing a legal obligation over the "winning" bidder to continue supplying fedgov with ammo during that period, when said vendor might have reason to question the wisdom of continuing to do so.
Or it could just be a way of using the IDIQ form of contract to buy tomorrow's ammo at today's GSA schedule prices.
I think they did, but I know for sure they armed the Dept. of Education (gotta hunt down those student loan delinquents) and the Sosh Security Admin (just bought about 200K rounds of select handgun ammo). After all, those senior citizens get mighty uppity when the check is late.
No, that would not be a wise action. Remember the term "going Postal"? Yes, some of the USPS is nuttier than the Ocuppy Movement. And that is not saying much.
Exactly what I was thinking.