Medico Industries producing mortar shell bodies for US Army.

Medico Industries has been awarded a $191 million contract by the U.S. Army to manufacture and deliver 60mm and 81mm high fragmentation and non-high fragmentation mortar shell bodies.

U.S. Soldiers prepare to fire an M224 60 mm mortar system during a training exercise (Photo Staff Sgt. Christopher McCullough/U.S. Army)

The deal was announced Wednesday 28th Decenmber 2017 by the Department of Defense under the terms of a firm-fixed-price contract, meaning if Medico Industries accumulates overrun costs while working on the contract, the U.S. government will not reimburse those company losses.

The M224 60mm Lightweight Mortar is a smooth bore, muzzle-loading, high angle of fire weapon used by conventional and special operation forces for close indirect fire support of ground troops. Similarly, the 81mm mortar is classified as a medium-weight mortar that has the same characteristics and mission as the 60mm mortar system.

Work on the contract and funding will be determined with each order, as the contract is expected to run until December 2022.