Pentagon seeks to fine contractors over delayed artillery ammunition deliveries for Ukraine - Bloomberg

The US Army intends to levy a penalty on defense companies Northrop Grumman and Global Military Products over delays in delivering artillery ammunition to Ukraine. It is an example of the Pentagon’s efforts aimed at increasing accountability among defense contractors.
Bloomberg reported this, citing documents from the US Army command, Censor.NET reports.
What is known?
The US Army contracting command said it is acting in line with recommendations set out in a Pentagon Inspector General report dated November 20, which calls for a $1.1 million penalty to be imposed.
- Some of the large-caliber shells, according to the audit, were delivered as much as 18 months late.
The US Army said it seeks to hold contractors accountable, oversee contract performance, and impose sanctions in case of violations. In addition, Pentagon chief Pete Hegseth pledged to reform the defense procurement system and respond more harshly to delays in critical deliveries.
More about the contract
The contracts with these companies were signed in January 2022 under a Ukraine security assistance program. They envisaged deliveries of various munitions and weapons systems over five years
- The Inspector General's audit covered seven contracts worth a total of $1.9 billion. The report said that under five of them, the US Army did not receive munitions intended for Ukraine.
Auditors also suggested that, in some cases, the military may have paid more than necessary, and this did not ensure the timely delivery of the shells.
The Pentagon also ordered an additional $907 million worth of munitions that have not yet been delivered. Some of that order may be canceled, and some may be fulfilled later, the US Army added.