I think of the arrangement similar to the knives from the SK gents. They bring a design to Buck and say, can you made us 200 of these? Buck says, yes for this much as that's one of our patterns. Ok, lets do it.
Remington comes to Buck and says, we want you to make knives for us. Will you? Yes, but for that type knife we'll have to add some different tooling. Ok, in turn if you do this we'll contract with you to make 1 million of these. Ok, after crunching the numbers we can make them for this much. Remington says, ok, let's move forward with this. My take. DM