As is typically the case when discussing Bushmaster the timeline and lawsuits get all jacked up. This confusion makes the discussion quite difficult, so I will present a brief timeline:
12 June 1985 Colt is awarded a contract to develop the XM4 Carbine
24 Jan 1986 the UAW walks out of Colt and begins a strike
September 1988 FNMI is awarded the M16A2 contract instead of Colt.
October 1988 Colt protests FNMI’s contract to the GAO
January 1989 GAO denies Colt’s protest
09 September 1989 NLRB ends the strike in UAWs favor
April 1990 Bushmaster awarded a contract for 65 carbines having “all the physical and technical characteristics of the M4 Carbine.” Unknown contract number.
27 June 1990 Bushmaster delivers and is paid for the 65 Carbines
02 August 1990 Iraq invades Kuwait.
Colt sold in 1990, was bailed out by the State of Conn.
Spring 1992 Colt files for Chapter 11
1994 both USSOCOM and the US Army order up and adopt as Standard A the M4 and M4A1 Carbine.
1996 the M4 TDP is completed, CRANE releases the TDP to 21 contractors
Dec 1996 Colt terminates the US Government’s license for improper release of the TDP
1997 big fight in regards to Colt’s TDP
Dec 1997 Colt and the US Government settle up by adding the M4 addendum to the 1967 agreement. As part of this agreement the US Government is prohibited from releasing the TDP for competitive bidding till 2009.
1998 FNMI challenges the M4 addendum in an attempt to gain M4 contracts. FNMI looses.
Sources:
www.thegunzone.com/556dw-7.html
http://multinationalmonitor.org/hyper/issues/1989/12/behindlines.html
http://www.dougsimpson.com/river/archives/000170.html
http://query.nytimes.com/gst/fullpage.html?res=9E0CE2D6163CF932A35753C1A964958260
http://www.thegunzone.com/556dw-7.html
http://www.usfirearms.com/pdf/BushmasterWins.pdf
http://www.uscfc.uscourts.gov/Opinions/Wiese/98/FN.htm
http://www.uscfc.uscourts.gov/Opinions/Wiese/99/fn.htm