It happened Tuesday at Fort Bragg's Range 77.
According to a news release, the range control contractor was taken to Womack Army Medical Center where he died from a gunshot wound.
A second range control contractor, who also sustained a gunshot wound, was transported via air ambulance to UNC-Chapel Hill. His condition was not known.
The third person, a soldier who is a student at the U.S. Army John F. Kennedy Special Warfare Center and School, was grazed in the arm and is currently being treated at Womack Army Medical Center.
Officials did not give any more information about how it happened or the names of the dead and wounded. However, they do say they were using live ammo, because they have to replicate a real situation.
During a news conference Tuesday afternoon, Fort Bragg PAO Tom McCollum said the incident was an accident and is an extremely rare occurrence.
He also said the incident is under investigation.
The Associated Press reported the two contractors were employees of Echota Technologies Corp., which is located in Tennessee. It said a telephone call seeking comment was not immediately returned Tuesday evening.
The range is currently closed until further notice.