SANDF makes another, small, ammunition purchase

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State arms acquisition agency Armscor has placed a R2.896 million order with state arsenal Denel for unspecified small calibre ammunition. The order is a further extension of a 2008 contract (ESCW/2008/399).

The original contract, worth R84 387 755.86, was awarded in May 2008. A further order of R1 733 647.89 was placed in June 2009 and another of R1 284 272.35 in May 2010.

Armscor places orders on behalf of the SA National Defence Force, the police and the prison service. It is not clear from the Armscor Bulletin System for which of these the order was placed. The order, last week, takes known ammunition orders since 2007 to R489 724 899.84

The state arsenal Denel has been the major beneficiary of the orders. In its annual report for FY2008/9, released in October 2009, it said under an entry for subsidiary Pretoria Metal Pressings (PMP) that SANDF ammunition stocks were close to depletion. It added that orders from the military were showing a “healthy increase” after 13 years of “insignificant sales”. The report noted the SANDF was currently spending about R60 million on small (5.56-12.7mm) and medium calibre (20-35mm) ammunition, adding that increasing that figure to R125 million a year was a “management focus” in the year ahead. The October 2010 annual report stated the order value from the SANDF on PMP’s products increased to R130 million in the 2009/10 financial year, with the target for the coming financial year increasing to R160 million per annum

PMP employs about 1300 people and serves global defence markets as well as the SANDF, the SA Police Service and the Department of Correctional Services. Revenue for the year to March 201 was R626 million, up from R601 million the year before. Profit was R25 million from a loss of R12 million the year before.

VARIOUS SMALL CALIBRE AMMUNITION

Small calibre ammunition – extension of ESCW/2008/399

SCW/S2011/1705 7 Jul 2011 R2 896 129,66 Denel (Pty) Ltd t/a PMP

SCW/S2010/1523 13 May 2010 R1 284 272,35 Denel (Pty) Ltd t/a PMP

SCW/S2009/1390 4 Jun 2009 R1 733 647,89 Denel (Pty) Ltd t/a PMP

Round 7,62 x 51 mm ball belted, round 9 x 19 mm ball, round 12,7 x 99 4B/IT, round 12,7 x99 mm 4 API/1API-T

ESCW/2009/519 27 May 2010 R4 622 967,06 Denel (Pty) Ltd t/a PMP

The procurement of round 9 x 19 mm ball, round 5,56 mm ball, cartridge 12,7 mm 4B/1T belted, cartridge 12,7 mm 4 API/1API tracer

ESCW/2009/238 1 Oct 2009 R2 189 636,18 Denel (Pty) Ltd t/a PMP

Round 7,62 x 51 mm ball belted, round 5,56 x 45 mm ball and round 9 x 19 mm ball

ESCW/2009/73 27 Aug 2009 R2 899 257,97 Denel (Pty) Ltd t/a PMP

Procurement of 7,62 belted vickers, round 9 x 19 mm ball, cartridge 12,7mm 4 ball/1 tracer belted, round 20 mm HEI type 820A, cartridge 20 mm Practice type 151 Prac/1 Pract T

ESCW/2008/536 18 Jun 2009 R3 289 443,61 Denel (Pty) Ltd t/a PMP

Small calibre ammunition

ESCW/2008/96 28 May 2009 R70 000,00 Denel (Pty) Ltd t/a PMP

Procurement of small calibre ammunition for the SA Army

ESCW/2008/399 8 May 2009 R84 387 755,86 Denel (Pty) Ltd t/a PMP
5,56 mm and 12,7 mm ammunition

ESCW/2008/546 6 Mar 2009 R3 962 000,00 Denel (Pty) Ltd t/a PMP

Small calibre ammunition

ESCW/2008/283 4 Dec 2008 R3 519 828,00 Denel (Pty) Ltd t/a PMP

Ammunition round 7,62 mm belted and round 5,56 x 45 mm

ESCW/2008/181 4 Sep 2008 R3 383 410,80 Denel (Pty) Ltd t/a PMP

Small calibre ammunition

ESCW/2007/375 3 Jul 2008 R2 306 422,85 Denel (Pty) Ltd t/a PMP

Ammunition

ESCW/2007/413 6 Mar 2008 R478 480,00 Denel (Pty) Ltd t/a PMP

Small calibre ammunition

ESCW/2007/217 20 Dec 2007 R586 270,55 Formalito (Pty) Ltd

Ammunition

ESCW/2007/103 13 Sep 2007 R98 237 507,00 Denel (Pty) Ltd t/a PMP

Lapua .22, Eley Tenex, Fedrel, Noble and NGA reloaded ammunition

ESCW/2007/115 12 Oct 2007 R343 904,91 Formalito (Pty) Ltd

Denel (Pty) Ltd t/a PMP

New Generation Arms Small calibre

ManagementRound 5,56 x 45 mm ball M1A4and round 9 x 19 mm M1A5 ball Berdan ammunition

ESCW/2007/16 5 Jul 2007 R3 353 845,00 Denel (Pty) Ltd t/a PMP