Many seem to be demanding that DHS answer this question:
Why did you buy 1.6B rounds of ammunition?!
I think I blogged this once.
In summary, the mom and pop stores get run out of the market. The only suppliers left are the Big Box stores (The Dicks) who sell only the guns, ammo, and parts that the government approves of (Changing the culture around guns so as to gain control of that culture and thereby impose their wishes. Kind of like they did with higher education.) Price skyrockets as availability plummets. And if badness kicks off, Leviathan already has enough for 20 years while you just spent your last few bucks on $1/round Wolf 5.56.
The why should be obvious. Let's get to the more immediate question.
Where is it?
My guess is that the ammo has not been stored in an even distribution geographically or by population. Sure, Leviathan might reinforce strongholds. But they don't need to prepare for an invasion of an area they've have already conquered. Why not instead stage the supplies near where they expect to need them?
More @ The Cliffs Of Insanity