BAE Systems and Olin Corp. have formed a joint venture to try to oust Alliant Techsystems as operator of the U.S. Army's largest small-ammunitions production plant.
The Army is soliciting contract proposals to run its Lake City, Mo., ammunition plant and is expected to make a decision by October. Alliant, which recently moved its headquarters from Eden Prairie to Arlington, Va., has run the Lake City plant under contract since 2000.
BAE, a British defense contractor, and Olin, a Missouri-based producer of ammunition under the Winchester brand, announced Monday that they will bid on the Lake City contract, which they say is potentially worth over $2 billion in sales over 10 years.
Alliant last year lost out to BAE on a 10-year, $850 million contract to run the Army's ammunition and rocket propellant plant in Radford, Va. Alliant had held that contract since 1995, when it bought a company that had run the Radford plant for 54 years.
Alliant has protested BAE's winning bid on the Radford contract to the Government Accountability Office.
MIKE HUGHLETT
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