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Reports from the LE/mil community are that the XDs haven't done as well as hoped in various tests. There have been rather significant parts breakages. Combined with SA's policy on parts (you send the gun back to get SA to install anything that needs to be done), and it's a nonstarter. I've heard the SA policy is changing, but it's probably too late. Any market share the XD could have gotten has been snapped up by the M&P.
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Bingo, Buzz. I haven't personally seen broken XD's but you're pretty much dead-on with the parts issue. I qualified one of my guys on a XD40 but we don't issue duty gear for it, nor do we maintain it. Like a lot of folks he has elected to carry it off-duty, and leave his G22 in the duty rig. In fact last time I saw him carrying off-duty, that G22 was in his holster.