Note that many contracts are just that, and already in place. Defaulting on the contract terms is going to be a problem, and that problem may very well lead to closing the doors. I don't see how having ammo companies folding is helpful in any way.
Lots of people here who have no skin in the game, no clue how the business works, think the SC should somehow just invalidate an OSHA rule, would not know Jacobson vs. Mass. if it hit them on the head and have no idea how a vaccine actually works seem to be pissed off at a company that may really have no choices but follow the law or close the shop.
Now should this mandate actually exist? Most certainly not, the threat from Covid is nowhere near a reasonable threshold where the State should be making it any kind of requirement for anything at all. Offer it up for free, sure. Promote it in any way you like, sure. Penalize people who don't get it? That's insanity. Of course a good number of inhabitants of the US seem to be functionally illiterate and/or insane, so I guess I should not be surprised. I mean AOC got elected, and how is that possible if anyone heard her say anything? Uncle Joe serves up word salad at every press conference and instead of being in a elder care facility he's President? Wonko the Sane may have a point.
If you currently have .GOV contracts in place, well, you are kind of stuck. If on the other hand you are bidding, or open contracts are out there, realize what you are committing to when you bid and get one. The pushback needs to be contractors banding together and denying any new contract work until the mandate is lifted. That's much easier to say than to do, as many of those companies live off those contracts and competition to get them is tough. Absent that (which is pretty much never going to happen) our representative government needs to be so swamped by public complaints that they have no choice but to reverse policy.
If enough people just say no, and enough products go into mass shortage mode, delivery companies can't deliver what product actually exists and it starts to look like the old Soviet Union bread lines at the supermarket, then you might get some .GOV types to see the error of their ways. Maybe. I don't hold out much hope for sane policy given the way they talk and behave.
Of course I've got food, water. ammo and a several mile perimeter. I'm pretty much past caring what the masses do. I expect the dolphins to depart shortly.