This is only a small part of the story, though. The inclusion of XM8 into the testing is very telling. The XM8 program was canceled because the gun wouldn't function to the Army's expectations. At the same time this was happening, H&K developed the HKM4 (which is now the 416) but certain people within the Army command structure actually tried to prevent the HKM4 from reaching military hands. Why? Because there was a fear that the simpler, less expensive HMM4 would outshine the XM8 ... and too many people's careers were tied to XM8.
For example, HK was convinced not to submit the HKM4 for the SOCOM "SCAR" test, but instead submitted the XM8 even though SOCOM had indicated they did not want the XM8 and didn't consider it suitable for their needs. There are quite a few folks who believe the 416 would have walked away with the SCAR contract if only H&K had submitted it.
I'd also guess -- and this is just speculation -- that some of what we're seeing is a backlash to earlier cries by Colt that too many units were buying 416's with emergency discretionary money rather than going through existing contracts for M4s ( = Colt) or going to competition. The result is that the Army put a stop to much (though not all) of the H&K 416 proliferation within the US Military.
For example, HK was convinced not to submit the HKM4 for the SOCOM "SCAR" test, but instead submitted the XM8 even though SOCOM had indicated they did not want the XM8 and didn't consider it suitable for their needs. There are quite a few folks who believe the 416 would have walked away with the SCAR contract if only H&K had submitted it.
I'd also guess -- and this is just speculation -- that some of what we're seeing is a backlash to earlier cries by Colt that too many units were buying 416's with emergency discretionary money rather than going through existing contracts for M4s ( = Colt) or going to competition. The result is that the Army put a stop to much (though not all) of the H&K 416 proliferation within the US Military.