Not all the reports were negative. In a series of mock-combat situations testing the AR-15, M14 and AK-47, the Army found that the AR-15′s small size and light weight allowed it to be brought to bear much more quickly, just as CONARC had suggested. Their final conclusion was that an 8-man team equipped with the AR-15 would have the same firepower as a current 11-man team armed with the M14. They also found that the AR-15, as tested, was more reliable than the M14, suffering fewer stoppages and jams in tests where thousands of rounds were fired.
At this point, Fairchild had spent $1.45 million in development expenses, and wished to divest itself of its small-arms business. Fairchild sold production rights for the AR-15 to Colt Firearms in December 1959, for only $75,000 cash and a 4.5% royalty on subsequent sales. In 1960, ArmaLite was reorganized, and Stoner left the company.
[edit]M16 adoption

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On February 28, 1967, the XM16E1 was standardized as the M16A1. Major revisions to the design followed. The rifle was given a chrome-lined chamber (and later, the entire bore) to eliminate corrosion and stuck cartridges, and the rifle’s recoil mechanism was re-designed to accommodate Army-issued 5.56 mm ammunition. Rifle cleaning tools and powder solvents/lubricants were issued. Intensive training programs in weapons cleaning were instituted, and a comic book style manual was circulated among the troops to demonstrate proper maintenance.[14] The reliability problems of the M16 diminished quickly, although the rifle’s reputation continued to suffer.[14]
According to a February 1968 Department of Defense report the M16 rifle achieved widespread acceptance by U.S. troops in Vietnam. Only 38 of 2100 individuals queried wanted to replace the M16 with another weapon. Of those 38, 35 wanted the CAR-15 (a shorter version of the M16) instead.[29]
[edit]NATO standards