A federal purchase that hogged 15 percent of America's total annual bullet production might indeed contribute to a shortage, but it's not that simple. For one, officials say DHS will actually buy more like 750 million bullets, though it is authorized to buy as many as 1.6 billion. For another, the contract is spread over five years – part of what DHS calls a "strategic sourcing" initiative to save money. Finally, the contract stipulation that bullet manufacturers must honor federal government ammo orders ahead of the public and local law enforcement, while rankling to gun rights activists, is par for the course, dating back to at least World War II.
In the end, the DHS budget calls for spending $37.2 million on bullets in fiscal 2013, compared with $36.5 million in 2012.
But critics – especially those who believe that the Obama administration is determined to discourage gun-ownership – are not assuaged, saying the DHS ammo purchase fits a pattern of this presidency: If you can’t run though your agenda legislatively, run through it anyway. Conservative talk-show host Michael Savage put it this way recently: “It’s a way to control the amount of [ammunition] that’s available on the commercial market at any time.”
“Once the government issued contracts for 1.6 billion rounds, even if it’s over five years, that’s a tremendous volume of shells coming off the market, and the market reacts to it,” says Mr. Dillard, of David’s Gun Room. “It’s very frustrating from everybody’s point when you have a government where, if they can’t take the guns, they say, ‘Hey, we’ll take the ammunition.’ It makes the gun a very expensive stick.”