Other Transaction Agreement W519TC2592016

Nammo Defense Systems Inc. received an Other Transaction Agreement (OTA) from the U.S. Army's Program Executive Office for Ammunition in July 2025 for the CORNERSTONE OTA - 7.62MM Rifle Rapid Ammunition program, valued at $2.32 million for Year 1 with full funding. The contract extends through October 30, 2031, with ultimate completion scheduled for November 11, 2026, and performance will be conducted in Sweden. This non-traditional acquisition vehicle carries no set-aside designation and reflects the Army's interest in leveraging innovative approaches for ammunition development. Nammo Defense Systems, a foreign-owned manufacturer headquartered in Mesa, Arizona and subsidiary of Finnish defense company Nammo Lapua OY, is well-positioned for this work given its extensive experience producing munitions and propellants for multiple U.S. military branches across numerous prime contracts valued in the hundreds of millions of dollars.

The CORNERSTONE program represents an additional vehicle under the Program Executive Office for Ammunition's portfolio, supplementing Nammo's existing $498.1 million Indefinite Delivery Indefinite Quantity contract for M72 Light Assault Weapon systems. An administrative modification to the OTA was issued to address multiple points discussed during the contract kickoff meeting. Nammo's defense manufacturing capabilities span ammunition production, explosive ordnance systems, and specialized propulsion components, supported by a network of precision machining and material supply subcontractors including firms such as Hawkeye Precision Inc. and Continental Precision Inc.