Pushing to restock depleted US weapons stockpiles, the Pentagon has already committed 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 already committed 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 to be 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 committed $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.
Lockheed’s upcoming payments include $1.4 billion of a potential $5.2 billion to replace guided missiles for the GMLRS system.
In addition to its joint venture with Lockheed, RTX has a Pentagon commitment of $844 million 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 committed 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. For example, RTX has Pentagon commitments for $1.2 billion of a potential $1.4 billion to supply Ukraine with its long-range NASSAM air defense systems.
General Dynamics Corp. and other contractors have commitments of $901 million 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.
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