[DManA]

once the purchases are in large enough quantities the price differential for hollow points gets a lot smaller.

This is one big circle.

The Feds made big purchase of ammo to save money.

Oh, is that why I can't buy any ammo at the store?

No, we didn't actually buy the ammo.

Then why did they give you a discount?

Because we made such a huge order.

[XRdsRev]

The contract is an IDIQ contract (indeterminate date, indeterminate quantity). Those types of contract usually have a floor quantity (minumim that has to be procured on the contract) and a ceiling quantity (maximum that could be procured on the contract). the floor or base quantity is probably large enough to generate a big discount and there are probably incentives on the pricing in the event that more than the minimum is procured. It is unlikely that they will ever procure the maximum.