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Nonetheless, the US military adopted the 723 for use, and officially designated it the M16A2 Carbine.
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They will typically use the model name and number designated by the factory, thus adopting it as an official term by the USG for that particular agency. Thus, any number of commercial M16A2 variants would be official firearms used by the USG with the A2 designation in the model name as official nomenclature.
I think we're getting into a semantic difference on the definition of "official." Everything in government inventory is assigned a Federal Approved Item Name (AIN), but it not necessarily officially designated in any of the official nomenclature systems.
Usage of the manufacturers name as the type designator does not make that type designator an official type designator in any of the US military designation systems. The type designator was not determined by any agency of the US government. The commercial name can be used when the item does not have to be significantly modified for use. The nomenclature Rifle, 5.56mm, M16A2 has a very specific meaning. A commercial item called an M16A2 could be anything and does not have to have any relation to the Rifle, 5.56mm, M16A2 nomenclature in the US Army's nomenclature system. It could be a pink flamingo lawn ornament.
Now, are there other A2 type rifles in US military inventory? Of course. We agree on that. Are they designated as M16A2s in any of the military designation systems? No. Do they have official nomenclature as part of the logistics system? Yes.
I guess where we keep having our disagreement is that you keep defining things in terms of the US Military. I can speak from my frame of reference, Federal law enforcement, which is decidedly part of the USG (US Government) to which I have repeatedly referred to. When I look at my agency policy that referred specifically to Colt A2 rifles and its variants (back when we used them), it included all of those variants, and various ones were in our inventory. We referred to them by their factory production names. I know such a policy is tantamount to heresy in the US Military, but it is Federal law enforcement, and a weapon in that respective agency's inventory nonetheless. I can only surmise that Federal law enforcement agencies have much more flexibility in the weapons procurement contracts (and they do) thus accounting for the difference.
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As for the XM4, it didn't evolve into something else, it was just a prototype. The XM4 and M4 are two different rifles entirely. The actual M4 did come years after the 6520.
The process by which a prototype becomes a finalized design is pretty much the definition of evolution. The XM4 designation was only applied in 1987 to weapons that the US Army had been testing since 1984. The development of the M4 starts with the development of carbine versions of the M16A2. The process by which the M4 and other A2 type carbines were arrived it was concurrent. The M4 just came out of the process later.
Also, the XM4 prototypes and the production M4 are not really all that different. The handguards got changed along the way and of the various barrel profiles tested, one was selected. Within months of the design being finalized, the upper receiver was changed to the flat top. The functioning elements and dimensions were basically unchanged during the process.
Thanks for the good information and history you have provided. Good thread.