I'm not quite sure what is the purpose of such a small business here. I do not believe that any small business is going to do the work that large ammo companies are doing and to manufacture the rounds from metal and powder and bullets. This can be done for 100 rounds at home, but not for millions of rounds - you need machines for that.
This small business can do only one thing. It can sign two pieces of paper: to buy rounds from the manufacturer, and to sell them to the government. The difference in price will be pocketed without doing any real work. Is this the intent?
That’s what this government has been about in everything it has done. Somebody has been in the middle profiting for doing nothing
This is exactly how it works. There are also minority owned businesses that only do business with the government. Every government purchasing agent has to purchase a certain amount from minority owned businesses each year. Lots of these simply have the merchandise drop shipped from the bigger companies and skim a little off the top.
There are also lots of bigger companies that have deals with minority owned companies just for this reason.