Founded in 1986 by Randy Luth, DMPS acted as a contract consulting company for the U.S. government. While he owned a precision machine shop that manufactured M-16, M-14 and M203 parts for the Army, he also helped smaller machine shops obtain such contracts and develop quality control programs. In 1990, DPMS became the third largest manufacturer of the AR-15, kits and accessories, and registered their own patents for the components.
DPMS has found growing popularity with different law enforcement agencies around the world along with the Jordanian army. DPMS developed the Kitty-Kat, a shorter version of the AR-15, for the military.