Audit of the U.S. Army’s Processes for Providing Supplies and Equipment Funded Through the Ukraine Security Assistance Initiative (Report No. DODIG-2026-014)

What We Did:

The objective of this audit was to assess the effectiveness of the DoD’s processes for ensuring the quality and timeliness of supplies and equipment provided to the Ukrainian Armed Forces (UAF) funded through the Ukraine Security Assistance Initiative (USAI). This is one in a series of two reports on this topic and relates to the U.S. Army’s processes.

What We Found:

The Army and DoD established adequate procedures to ensure that supplies and equipment met required quality specifications and were received and accounted for before transfer to Ukraine for all seven USAI-funded contracts we reviewed, valued a t $1.9 billion. However, the Army did not effectively procure ammunition for the UAF’s use for five of the seven contracts we reviewed, valued at $1.6 billion.

The Army may have paid more than necessary for the ammunition acquired and did not ensure that contractors delivered ammunition in a timely manner. This occurred because the Army issued indefinite quantity contracts that were not set up to supply the volume of ammunition needed by Ukraine, but were the option the Army believed would allow the DoD to meet Ukraine’s needs quickly.

Additionally, Army personnel did not hold contractors accountable for missed delivery timelines because they did not include contractual remedies in three of the five contracts we reviewed, collect consideration as allowed by the other two contracts, or complete contractor performance assessments.

As a result, there were delays of up to 18 months in providing the UAF with needed supplies, and the Army paid $20.5 million more than the indefinite-delivery indefinite quantity base contract price for some of the ammunition delivered to the UAF, resulting in potential waste. The Army also ordered $907 million in ammunition that has not yet been delivered and could put these funds to better use if it cancels those orders or finds alternative sources. The uncollected consideration for late ammunition deliveries totals $1.1 million, which could be put to better use if the Army pursues the contractual remedy available on two contracts to collect those funds. Finally, by not completing timely contractor performance assessments, the Army inhibited other contracting personnel from having information about the contractors’ ability to deliver supplies in a timely manner.

What We Recommend:

We made eight recommendations related to improving processes to provide supplies and equipment in support of ongoing and future contingency operations and holding contractors accountable for negative performance. Management’s proposed actions addressed five recommendations, and they are resolved and will remain open until we verify that management has implemented the corrective actions. However, management did not propose actions that would address the remaining three recommendations, and they are unresolved. We request that management provide comments in response to the final report to address the unresolved recommendations within 30 days.