The US Army is demanding penalties from contractors for overdue ammunition for Ukraine
The United States Army has begun proceedings to impose fines on Northrop Grumman and Global Military Products for delays in supplying artillery ammunition to Ukraine, Bloomberg reports. This is in line with the recommendations of the Pentagon Inspector General's report of 20 November, which proposed imposing sanctions in the amount of $1.1 million for late deliveries of large-calibre shells.
According to the Army Contracting Command, some batches of ammunition were delivered up to 18 months late. The final amount of penalties for each company is currently being assessed, but the exact amounts have not yet been disclosed.
The army emphasises that it intends to exercise stricter control over contract performance, document violations and apply the penalties provided for in the agreements. The statement came amid promises by the US Secretary of Defence to reform the defence procurement system and hold contractors accountable for disrupting critical supplies.
The Inspector General's audit covered seven contracts with Northrop Grumman and Global Military Products worth a total of $1.9 billion. According to the report, in five of these cases, the army failed to ensure the timely delivery of ammunition to Ukraine, did not effectively control prices, and did not apply sanctions for missed deadlines.
In addition, the army ordered another $907 million worth of ammunition, which has not yet been delivered. The Pentagon acknowledged that some of these contracts will be cancelled, some of the ammunition has already been delivered, and the rest is expected to arrive later. All agreements were concluded in January 2022 as part of a five-year programme to support Ukraine's security.
