To clarify, you mean they have the ability to do everything in house but sometimes sub work out as needed, correct? This was always my understanding and seems like what you meant, just confirming.
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This is where I really feel that in a more open competition KAC would have had a chance to campaign the feature set of the SR-15 as a candidate for a revised 21st century TDP (DoD cost savings over adopting a whole new FOWS) in the E3 bolt system and MWS lower, and probably CHF barrels and a revised gas system as gradual retrofits to existing stocks of weapons.
To me it seems like it should be rather simple to manufacture parts to a given spec with the right equipment and right QC/QA (read - discarding parts that don't cut it), and the only reason we see significant lemon rates on ANY modern manufactured goods is that those firms have concluded it's not worth the cost to them to identify and discard those parts.