The US wants to fine two companies for delays in supplying artillery to Ukraine

The US Army intends to levy fines against Northrop Grumman Corp. and Global Military Products Inc. for delaying the supply of artillery shells to Ukraine, an example of the Pentagon's efforts to increase contractor accountability. This was reported by the agency Bloomberg.

The US Army's contracting command said it was acting in accordance with recommendations contained in a November 20 report by the Pentagon's inspector general, which proposed fines of $1.1 million for delays in the delivery of large-caliber shells, some of which were delivered 18 months late.

The armed forces are still assessing the exact amount of the fine, and the amount for each company is "not yet disclosed," the statement said.

"The army is determined to hold contractors accountable by actively monitoring contract performance, documenting work results and applying contractual measures in case of non-compliance," the ministry said.

Although the fine is only a small fraction of the amount of the disputed contracts, the Army's announcement comes after Pentagon chief Pete Hegseth promised to reform the procurement process and penalize contractors who deliver critical goods late.

A Northrop Grumman spokesperson said that "in this case, the Army is the correct source for comment." Representatives of Global Military Products did not respond to calls and emails seeking comment.

The contractors were awarded a five-year contract for the supply of special ammunition and weapons systems with an "indefinite-delivery, indefinite-quantity" delivery date of January 2022 under the 46th US President's Security Assistance Initiative Joe Biden.

The Pentagon's Inspector General has audited seven contracts between Northrop Grumman and Global Military worth $1.9 billion. According to the audit, the army did not "effectively procure munitions" for Ukraine's needs for five of the seven contracts reviewed. It says that the army may have overpaid for ammunition, failed to ensure timely delivery, and failed to hold contractors accountable for failing to meet deadlines.

The army also ordered $907 million worth of ammunition that has not yet been delivered and "could have used those funds more effectively" if the order had been canceled, the inspector general said.

When asked about the status of this ammunition order, the army replied that it was a combination of five separate contracts concluded with contractors.

"Part of the ammunition has already been delivered, part of the unfulfilled order will be canceled, and the remaining part of the order will be delivered," the army said in a statement.

• On November 9, 2025, Axios wrote that export of American weapons more than $5 billion intended to support NATO allies and Ukraine has been postponed due to the US government shutdown.
• In October, the then head of the OP Yermak stated the Ukrainian government said that there were delays in the PURL program, under which NATO allies buy American weapons for Ukraine.