Pushing to restock depleted US weapons stockpiles, the Pentagon has put on contract almost $2.3 billion of a potential $6 billion to Lockheed Martin Corp., the top maker of munitions that the US has provided Ukraine in its fight against Russia’s invasion, according to new Defense Department data.
(Bloomberg) — Pushing to restock depleted US weapons stockpiles, the Pentagon has put on contract almost $2.3 billion of a potential $6 billion to Lockheed Martin Corp., the top maker of munitions that the US has provided Ukraine in its fight against Russia’s invasion, according to new Defense Department data.
Similarly, Lockheed’s joint venture with RTX Corp., formerly Raytheon Technologies Corp., is on track to receive about $1.4 billion of a potential $1.9 billion to replenish its inventory of Javelin anti-armor weapons, based on the updated Pentagon figures released Tuesday.
Lawmakers, contractors and analysts have pressed for such data on the efforts to rebuild Defense Department inventories, a process that can stretch over years as contracts are negotiated and production lines are restarted. So far, the Pentagon has obligated $9.7 billion to replenish stockpiles, out of a total $26 billion appropriated for that purpose by Congress.
The new figures use a revised methodology by the Pentagon’s Office of Acquisition and Sustainment to reflect “obligated” dollars set to be disbursed to companies as deliveries are made or other contract terms met. That’s a more precise measure than past accounting that tallied only the “not to exceed” upper limits of such contracts.
Defense officials said not all of the funding is directly related to drawdowns of inventory to arm Ukraine. They said that’s true of upcoming payments to Lockheed of $1.4 billion of a potential $5.2 billion to replace guided missiles for the GMLRS system. The funds also are providing for upgrades and research and development for the weapon’s next version.
In addition to the joint venture with Lockheed, the Pentagon has obligated $844 million to RTX to manufacture replacements of the most advanced Patriot air defense missile sent to Ukraine, known as the PAC-3 MSE. RTX is also on track to receive $581 million of a potential $624 million for Stinger air defense missile replacements.
Acquisition officials changed their methodology “to more accurately report funds obligated to date,” according to a Pentagon statement. They adjusted the periodic reporting “to reflect current obligations, rather than contract ceilings,” which “haven’t fallen or been reduced in any way,” the Pentagon said.
Congress also has appropriated $18.6 billion to provide for Ukraine’s long-term defense needs. So far, $7 billion of that money has been obligated to US companies, such as $1.2 billion to RTX of a potential $1.4 billion to supply Ukraine with its long-range NASSAM air defense systems.
General Dynamics Corp. and other contractors have $901 million obligated of a potential $1.4 billion to provide Ukraine with replacement 155mm howitzer ammunition.
The Pentagon said in its statement that the change in reporting obligated funds “is not in any way caused by or related to the re-evaluation of items provided to Ukraine under Presidential Drawdown Authority” that resulted from a $6.3 billion accounting error disclosed in June.
(Corrects to change references from “committed” funds to “obligated” funds to reflect Pentagon’s categories and adds that funds aren’t exclusively tied to Ukraine drawdowns)
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