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Cost of Production of an M14

This is a discussion on Cost of Production of an M14 within the The M14 forums, part of the M14 M1A Forum category; Stumbled across an interesting report from 1968 detailing production costs of the M14. https://apps.dtic.mil/dtic/tr/fulltext/u2/677383.pdf...


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Old May 21st, 2020, 06:05 AM   #1
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Cost of Production of an M14

Stumbled across an interesting report from 1968 detailing production costs of the M14.

https://apps.dtic.mil/dtic/tr/fulltext/u2/677383.pdf

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Old May 21st, 2020, 06:47 AM   #2
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Interestingly enough, the first contract for M16s had a unit cost of $110 each.

So much for the "expensive to produce" M14 myth.

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Old May 21st, 2020, 10:52 AM   #3
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I seem to recall that the first M16 contract included accessories such as bipod, etc. Wasn't just the rifle.

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Old May 21st, 2020, 11:36 AM   #4
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Quote:
Originally Posted by GardenValley View Post
I seem to recall that the first M16 contract included accessories such as bipod, etc. Wasn't just the rifle.
From the report the M14 came with some gear included.
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Old May 21st, 2020, 12:36 PM   #5
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So, adjusted for inflation, about $900 in 2020 money? I'd buy a few.

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Old May 21st, 2020, 12:59 PM   #6
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$23 for ammo in 1961 and $47,233 in 1968.

The problem with Table 7 BILI list is that it does not show the line item cost when the prelude says it includes the cost.


Last edited by Louis1332; May 21st, 2020 at 01:13 PM. Reason: BILI
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Old May 21st, 2020, 05:23 PM   #7
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Quote:
Originally Posted by Louis1332 View Post
$23 for ammo in 1961 and $47,233 in 1968.

The problem with Table 7 BILI list is that it does not show the line item cost when the prelude says it includes the cost.
Go to Table 9, that breaks down the cost of the rifle and the BILI. Add those two together and divide by the number contracted that FY and you get the average cost across all the manufacturers that year.

For example, in Fiscal 1962 an M14 with equipment cost $116.70, which is pretty close to the average of the three suppliers that year, and the BII sets cost $6.90, assuming they bought the same number of basic issue items sets as rifles.

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Old May 21st, 2020, 05:30 PM   #8
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Quote:
Originally Posted by GardenValley View Post
I seem to recall that the first M16 contract included accessories such as bipod, etc. Wasn't just the rifle.
A few spare magazines, a bayonet and a bipod for every 10 rifles, probably around $1.50 worth of stuff (no cleaning kits, sadly).


Last edited by lysander; May 21st, 2020 at 06:29 PM.
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Old May 21st, 2020, 05:34 PM   #9
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Are all the disclaimers to cover Sec McNamara' tender Buttocks ?
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Old May 21st, 2020, 06:10 PM   #10
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Oh, found the notes from the M16/M16A1 Cost Analysis Report.

The cost breakdown per year is as follows (M16A1 only):

FY64 - $126 each (84,250 units)
FY 66 - $114/$105/$108 (403,905/52,903/279,292)
FY 68
- Colt's - $113 (142,128)
- H&R - $127 (60,000)
- GM - $158 (60,000)

You can play with the inflation rate between 1958 and 1968, and you can see that the cost to the Government was about the same with the M14 and M16. A good deal more when you add in the purchase of the rights to the design, $4.5 million plus 5.5% of the selling price of all rifles made by companies other than Colt's. (Which through 1968 totaled $940,500, or an additional $7.84 per rifle.)

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Old May 21st, 2020, 07:21 PM   #11
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I think the ammo cost was a bean counter selling point for the M16. I think the Army spent less per round but expended much more ammo with no better results.

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