Aditya Ballal
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You haven’t considered initial starting costs like setting up of the new factory, new machinery, possibly re training of labour, ToT fees and other costs and other inefficiencies of OFB. Also the fact that FN and Colt would have had to price their products competitively to get the contract considering there are many companies in the US who can make M4 pattern rifles. Here we just have one who was nominated.>Sadly, no quantity is stated in the contract award notices, however, both are valued at $88,607,109. With a roughly estimated per carbine cost of $600, that would suggest orders for just short of 300,000 M4s
Even if we ignore that they have a pretty mature MIC. Considering how we are ordering around 700k of Ak203, it sounds like a scam with such price point even when you consider its watered down.