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If Federal gets a deal on primers made by an outside source, at a price less than what it costs them to make primers inhouse, they will buy the cheaper primer.
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Is it possible to get such a deal on outside primer cheaper that what Federal can make on their own? Do you have a link to a site that states that has ever happened? Ask'en for a skeptical friend.
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Corporations exist to maximize profits now. As such, profit always trumps loyalty. You would not be asking this if your job had been outsourced to a lower cost vendor. Literally millions of people have had this happen to them, as Corporate determines that a division is not as profitable as it used to be, or that it will not be as profitable due to market place competition.
Corporations don't tell anyone who does not have a need to know what they are doing, or from who they are buying components. I don't work for ATK but I know that for every purchase Corporations make, they examine the marketplace and determine just who is the low bidder. ATK Commercial ammunition revenue was around $5.0 Billion in 2014, if your friend has a couple of hundreds of billions of dollars in loose change, he ought to buy the company to satisfy his curiosity. Once he owns the company he can go over every purchase order to his heart's content.