How can a business guarantee to supply a customer up to 100,000,000 rounds with the understanding that your customer might not buy anything. How can you possibly plan for this?
They have history to go on. I posted it up thread, but Winchester alone had a similar contract for 200 million just to ICE back in 2009. That was just one manufacturer and one arm of DHS. These contracts happen quite often (and people go chicken little over it every time).
Those numbers aren’t as big as they seem. Taxpayers buy billions of rounds of ammunition each year for the government.
http://www.military.com/NewsContent/0,13319,FL_ammo_020805,00.html
http://www.armytimes.com/news/2008/11/ap_greenammo_110708/
(latter article, one plant (Lake City) alone accounted for 1.4 billion/year rounds).