The Department of Homeland Security claims to have purchased less ammo last year than in previous recent years. And DHS says buying in bulk saves money.
So, why'd DHS issue requests for bids for what appear to be significantly larger ammo contracts last year? At least one, the 450 million round request for .40 caliber pistol ammo was more than twice the size of similar contract given in 2009.
Trying to contract for more ammo than you'll need or actually buy isn't a money saver. And you run the risk of bidders not taking your RFPs seriously.
Why would an ammo maker hold production capacity in reserve for a government contract, knowing that the government likely wouldn't order the rounds? Why would a manufacturer commit to excessive government contracts that may result in only a fraction of the rounds being purchased when it could see a better bottom line by prioritizing the private sector?