UnckleBob
WKR
- Joined
- Aug 21, 2022
- Messages
- 1,414
It’s a bold move in today’s business world to intentionally have a lost leader. Board of directors demanding shareholder value have little tolerance for such things.
If they have already done the bulk of the R&D for other projects, that R&D is a sunk cost and irrelevant to the cost of developing the 7BC.
The "cost" of developing the 7BC would only include any new R&D + costs to set up production.
BTW - I would not be shocked if this contract paid for much of the R&D cost for developing the peak alloy case.
Per AI
Federal Ammunition developed the Peak Alloy™ case over a six-year research and development timeline, beginning in response to a U.S. military solicitation for higher-performance ammunition. Here's a breakdown of the development process:

• Initiation: The project began when the U.S. military sought ammunition capable of handling higher chamber pressures than traditional brass could safely support.
• Material Testing: Federal engineers tested numerous materials under extreme pressure conditions. Their goal was to find a casing material that could:
• Withstand 80,000 psi chamber pressures (compared to the SAAMI brass limit of 65,000 psi).
• Be manufactured efficiently.
• Remain reloadable under controlled conditions.
• Breakthrough: After extensive testing, Federal settled on a proprietary high-strength steel alloy—similar to materials used in bank safes, race cars, and nuclear reactors. This alloy became the foundation for the Peak Alloy case.
• Design Finalization: The engineers developed a one-piece case configuration that could be reliably produced and safely loaded to high pressures. The casing was also nickel-plated to resist corrosion and differentiate it from legacy steel cases.
• Engineering Lead: Brad Abramowski, Federal’s Centerfire Rifle Ammunition Engineer, played a key role in the development. He confirmed that Peak Alloy cases could safely achieve 3,000 fps velocities with 170-grain bullets from 20-inch barrels, thanks to the increased pressure tolerance.
• Launch: The technology debuted with the 7mm Backcountry cartridge in early 2025, marking a major leap in performance and casing innovation 1.