http://forums.thecmp.org/showthread.php?t=41721
As you can see on the can... Is it because this ammo is rejected for military use for one reason or another, (attributed to Clinton's executive order that the U.S. isent supposed to "surplus" its ammo to the civilian market?)
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That particular lot didn't pass one or more of the many tests it is put under to be accepted as duty safe ammo. It could be something as trivial as improperly annealed cases, to being a little light on the powder charge, to being a different OAL than what spec calls for. Keep in mind, it didn't meet milspec standards, but it MUST meet SAAMI spec to be sold to anyone. That ammo is safe for us to use, but the military must be able to 100 percent trust all of its ammo.
Fatefinger
When it comes to the military ammo needs to be perfect. There can't be any deviation in the slightest at all period. They will reject a batch for the tiniest bit of being out of spec. In fact the luster of the brass is also a factor. So any one thing and it will be rejected. So Lake City sells the stuff on the civilian market. Like it has been noted its still must meet SAAMI specs and still is high quality ammo. There isn't anything wrong with it from a practical standpoint.
It isn't surplus as it was never given to the military in the first place.