The US Army is collecting penalties from Northrop Grumman and Global Military Products over late shipments of artillery ammunition intended for Ukraine.
The move, led by the Army Contracting Command, follows recommendations from a US Department of Defense Inspector General’s Office report last November that called for $1.1 million in penalties tied to delays of large-caliber shells.
Some of these packages were delivered as much as 18 months behind schedule, according to Bloomberg.
Part of Ukrainian Assistance
The contracts stem from a five-year Special Ammunition and Weapons System indefinite delivery, indefinite quantity agreement awarded in January 2022 under the Biden administration’s Ukraine Security Assistance Initiative, part of America’s aid to Kyiv amid Russia’s invasion.
Of the seven contracts under the initiative, valued at $1.9 billion, the Pentagon found the US Army failed to effectively procure ammunition for Ukraine in five, did not enforce delivery timelines, and may have overpaid.
The audit also flagged $907 million in undelivered ammunition, some of which has been delivered, some will be canceled, and the rest will be completed.
Current Developments
The military said it is still evaluating the final penalty amounts and has not disclosed how much each company may owe.
“The Army is committed to holding contractors accountable by actively monitoring contract execution, documenting performance, and applying contractual remedies for non-compliance,” the military said.
US Army Assistant Secretary of Defense for Acquisition Brent Ingraham also commented on the decision, saying that the service “acknowledges” the findings and that “corrective actions are either completed or actively underway,” including efforts to recover the $1.1 million.
Northrop Grumman referred comment requests to the army, while Global Military Products did not respond, Bloomberg reported.
