The US military is collecting fines from Northrop Grumman and Global Military Products for delaying the delivery of artillery shells to Ukraine. The move shows the Pentagon's efforts to strengthen the responsibility of defense contractors.
The US Army Contract Command said it is implementing recommendations in the Pentagon Inspector General's report dated November 20, 2025, which called for a $1.1 million fine for defense contractors for delays in delivering large-caliber artillery shell batches, with some batches delayed by up to 18 months.
The US military is still assessing the detailed fine level and the fine amount of each company is still "not yet available at this time".
The military is committed to holding contractors accountable by actively monitoring contract performance, recording performance and applying contract remedies for non-compliance," the statement emphasized.
The fine amount only accounts for a small part of the total value of the contracts, but the US military's announcement was made at a time when Defense Secretary Pete Hegseth had just pledged to reform the Pentagon's procurement process and fine delayed delivery contractors.
A Northrop Grumman spokesman said "in this case, the military is the most appropriate source to comment on".
Head of the US military purchasing department Brent Ingraham said that the military is aware of the inspector general's concerns, "remedial measures have been completed or are being actively carried out", including efforts to collect 1.1 million USD.
Contractors received a "unspecified supply, unspecified quantity" contract for special ammunition and weapons systems with a term of 5 years in January 2022 under the Joe Biden Administration's Ukrainian Security Assistance Initiative.
The Pentagon Inspector General reviewed 7 contracts of Northrop Grumman and Global Military Products worth 1.9 billion USD.
According to an audit report on November 20, 2025, the US military did not "effectively purchase ammunition" for Ukraine in 5/7 contracts being considered. The report said that the military may have paid too much for ammunition, not ensuring contractors delivered on time and not forcing contractors to be responsible for delays.
The US military has also ordered 907 million USD worth of ammunition but has not been delivered and "can use this money more effectively" if the contract is cancelled, according to the inspector general.
When asked about the status of the ammunition order, the US military said that this is actually a combination of 5 separate contracts signed with contractors. Part of the ammunition has been delivered; part of the undelivered goods will be destroyed; and the rest will continue to be delivered.
