So we are keeping the trigger guard and the forestock from the existing M24, and tossing the rest?
Probably.
They may not have funds in the bucket to procure new weapons, but may have funds in the maintenance/upgrades bucket. If so, what they are doing makes sense, in a government procurement kinda way. It may end up costing more to the taxpayers because it includes armory costs, but that is the way most of these things happen.
I agree with you, they could have a better deal with a clean, competitive, procurement for new firearms, but then they would have to figure out what to do with the old rifles so they do not fall into civilian hands later, as these guys will not work with the CMP.
Ah. There's half the cost right there.
Good glass, tuned for that round, ain't cheap.