If you were supplying a good or service and you had an opportunity to lock in a contract to a buyer who has a reputation for always fulfilling large orders and usually pays a premium, even if there is a chance they don't fulfill the whole thing, wouldn't you take the contract? Considering that .40 isn't a popular civilian model, it is a good deal to unload supplies. Simple business. The business has nothing to lose unless prices skyrocket beyond the contract. The business, however, has an advantage if they are concerned that increased government regulation will reduce the potential civilian market making gov the only buyer.
Ok, so you are saying the Government is buying a shit load of ammunition. That seems to be the point that is raising people’s eyebrows.