Minneapolis-based ATK received a $7.6 million contract to supply the Army with its M1028 120 millimeter canister cartridge. Officials say the M1028, compatible with U.S. Marine Corps Abrams tanks, creates a shotgun-like pattern when fired, designed for close-combat shooting effectiveness.

"ATK is proud to continue our partnership with the U.S. Army by providing this much needed capability to soldiers who are facing multiple threats on today's battlefields," Dave Wise, ATK advanced weapons vice president and general manager, said in a statement.

"The M1028 canister cartridge contract is a result of our long-term commitment to tank ammunition that has allowed us to focus on quality and production efficiencies that translate into safe, effective, affordable ammunition for the war fighter."

If all options are exercised, the new Army contract could be worth up to $30 million.