Interesting reading
You are not talking about LC M118, although I am sure at some point 175 gr SMK were put on some of those.
I found some info on your round. I had heard there was recent U.S. military research and development on sniper rounds. Although last I heard, they were planning 300 Win magnum as a new sniper platform. 338 Lapua was being used by some Canada and UK snipers in Afghanistan, while US troops had 50 cal (and 7.62) sniper rifles, and took turns breaking long distance confirmed kill distance records.
But, I do not believe this is current U.S. military battlefield production, for several reasons:
1. Not a NATO icon on the brass, or spec.
2. It is not FMJ. It is OTM. May be great for research and target competition, but I believe battlefield use would violate Geneva convention ban on expanding projectiles. MK are only designed for making holes in paper. Of course, shooters have long pulled FMJ and replaced them with MK's.
3. If you can buy them at Walmart (i.e. mass market merchandising), mil-specs don't mean much to ATK accountants and Walmart buyers.
http://www.dtic.mil/ndia/2009infantrysmallarms/tuesdaysessioniii8524.pdf
"7.62 x 51mm MK 316 MOD 0 Special Ball, Long Range A 175-grain round consisting of Sierra MatchKing Hollow Point Boat Tail projectiles, Federal Cartridge Company match cartridge cases and Gold Medal Match primers and an undisclosed modified extruded propellant. The 7.62 x 51mm MK 316 MOD 0 Special Ball, Long Range cartridges have an accuracy requirement based around 10-round shotgroups. The Propellant has been verified as IMR 4064 (per NSN 1305-01-567-6944 and Federal Cartridge Company Contract/Order Number N0016408DJN28 and has a charge weight per the specs of 41.745 grains).
The average extreme spread radius for 10-round shotgroups shall be less than or equal to the following values:
600 yd: 7.0 in (first Production Lot). This equates to a ≤ 1.1 MOA requirement at 548.6 m.
300 yd: 3.5 in (after first Production Lot). This equates to a ≤ 1.1 MOA requirement at 274.3 m.
The maximum muzzle velocity standard deviation is set at 15 ft/s (4.57 m/s). Information published on acceptance tests regarding five MK 316 MOD 0 cartridge production lots indicated a sub 2.4 in at 300 yd performance. This equates to a sub 0.8 MOA performance at 274.3 m for the listed ammunition lots.[9] "