Newington arms manufacturer SIG Sauer has won a 10-year contract that could be worth $6.5 billion to make rifles for the U.S. Army.
The new rifles will be the first weapons of their kind in 65 years, Army Brig. Gen. Larry Q. Burris said during a media briefing Wednesday.
The contract involves making the XM5 rifle and the XM250 automatic rifle and its 6.8 millimeter ammunition. It begins with $20 million to develop the production line at SIG Sauer’s New Hampshire facilities and test the resulting product.
The XM5 will replace the M4/M4A1 carbine, while the XM250 is the planned replacement for the M249 automatic weapon, the Army said.
SIG Sauer dates back to 1853 as a Swiss arms manufacturer. It moved to the U.S. in the 1980s and in 1996 opened a facility in Exeter. After changing the corporate name to SIG Sauer, it opened a 200,000-square-foot Newington headquarters and manufacturing facility in 2014, and has expanded into firearms and accessories for personal, law enforcement and military use as well as training operations.
Lake City Army Ammunition Plant in Independence, Mo., will work with SIGSauer on producing the ammunition.