The Department of Defense Office of Inspector General (DoD OIG) today released a report titled, “Audit of the U.S. Army’s Processes for Providing Supplies and Equipment Funded Through the Ukraine Security Assistance Initiative.” From March 2022 through September 2024, under the Ukraine Security Assistance Initiative, the DoD provided nearly $23 billion in security assistance to Ukraine for the country’s continued defense against Russia. This audit is one in a series of two reports on this topic.
The DoD OIG found that the Army was ineffective in procuring ammunition for the Ukrainian Armed Forces (UAF) across five reviewed contracts, which total $1.6 billion. As a result, the Army overpaid by more than $20 million—or as much as 245% more than necessary—for some of the acquired ammunition. Additionally, the Army exceeded the maximum order quantities by as much as 3,120% during a specific period. The Army also ordered $907 million in ammunition that has not yet been delivered to the UAF, which has experienced up to 18 months of delays in receiving the needed supplies. Furthermore, the Army failed to hold contractors accountable and didn’t collect more than $1 million for late or missed deliveries.
The DoD OIG made eight recommendations to improve the economy, efficiency, and effectiveness of the DoD’s acquisition and procurement processes. The DoD OIG will continue monitoring the implementation of the recommendations.