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Posted by: forthnback
Any S-III who met the genetic criteria of the S-II program were pulled and given MJOLNIR. Like Noble Team, and the handful of other S-III's they mention pulling.
Gauntlet and Echo team are likely made of these SIII's, which fought on Reach along with Noble & Red team. They are mentioned in New Alexandria.
Anyways, most of the S-III's were indeed cheaper sub-par Spartans due to the wider gene pool and the less advanced armor, but their augmentations accomplished the same results via different methods. Most of the S-III's just are crappier specimens. Augmenting Olympic athletes, as compared to augmenting college athletes. Same boost, but drastic difference in starting material.
It's important to note that the augmentations accomplished the same results chemically rather than surgically, and didn't kill two thirds of the class.
It is mentioned in Ghosts of Onyx page 99 that Spartan-IIIs were in fact augmented via surgery.
"They'd be sedated and injected with chemical cocktails and surgically altered . . ."