Heckler and Koch Defense has been awarded a contract by the U.S. Marine Corps for M27 Infantry Automatic Rifles.

The deal, announced by the Department of Defense, is valued at more than $29.4 million under the terms of a five-year, firm-fixed-price, indefinite-delivery, indefinite-quantity contract.

The contract from Marine Corps Systems Command enables Heckler and Koch Defense to produce and deliver up to 15,000 M27 Infantry Automatic Rifle systems, as well as spare parts, according to the Defense Department.

The M27 Infantry Automatic Rifle is a lightweight, magazine-fed select-fire weapon that originally was billed to replace the aging M249 Squad Automatic Weapon. The Marine Corps is considering replacing the service's M4 and M16 service rifles with the M27 IAR.

Work will occur in the United States and Germany and is expected to be complete in April 2023.

More than $7.4 million will be obligated to Heckler and Koch Defense at time of award from multiple fiscal accounts for the first delivery order, immediately after the new contract is awarded. More than $37,536 from fiscal 2016 funds will expire at the end of the current fiscal year, according to the Pentagon.

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