Some suppliers do not want to enter into long-term fixed-price contracts with the US Department of Defence to replenish weapons supplied to Ukraine from Pentagon stockpiles, according to a report by the GAO (Government Accountability Office).
The US military agencies have concluded or are planning to conclude in the near future multi-year contracts for the purchase of five types of weapons supplied to Ukraine. However, Pentagon and contractor representatives told GAO that they are facing problems in implementing these plans. For example, a number of contractors are reluctant to enter into long-term agreements because of their fixed price. The report said:
“DOD is collecting lessons learned based on its first-time use of supplemental funding for replacement. These include observations on challenges and solutions for using multiyear procurement contracts, among other things.”
The US military has already provided Ukraine with billions of dollars worth of weapons from its stockpile. As of March 2024, Congress provided $25.9 billion in supplemental funding that DOD can use to replace these weapons.
DOD obligated more than 70 percent of this funding—over $18 billion—as of December 31, 2023. Over $16 billion was obligated for the procurement of weapons and industrial base expansion, while the remainder was obligated to reimburse DOD transportation and logistics costs. Ammunition, missiles, and combat vehicles account for most of these obligations, the report said.
The Pentagon, however, identified numerous supply chain issues related to the COVID-19 pandemic and increased requirements from Ukraine, as well as “other factors.” The reports added:
“Long lead times associated with the delivery of parts and raw materials from suppliers are affecting many weapons programmes.”
On 24 April, US President Joe Biden signed a bill allocating about 61 billion dollars in military aid to Ukraine after more than six months of congressional negotiations. More than a third of the total amount, $23.2 billion, will be used to replenish US reserves. 13.8 billion dollars are earmarked for the purchase of weapons for Ukraine, 11.3 billion dollars will be used for “ongoing US military operations in the region,” 7.9 billion dollars are destined to help the Ukrainian economy and 26 million dollars are allocated to monitor aid to Ukraine.
