The US Department of Defense is accelerating the conclusion of contracts for the arms supplies to restock its own and Ukrainian arsenals.
Bloomberg reported about it.
The Pentagon’s acquisition officers are using an array of shortcuts to standard contracting procedures.
Some of these tools were used by the U.S. government during Operation Warp Speed to stimulate the development of vaccines against COVID-19.
One of these key tactic is known as the Undefinitized Contract Action. This means entering into a contract before all its terms and prices have been made final. This allows to quickly conclude contracts for the production and supply of weapons or their components.
The Pentagon now relies on such methods to restock Javelin anti-tank missile systems and Stinger man-portable air-defense systems (MANPADS).
According to an anonymous high-ranking official of the U.S. Department of Defense, UCA was used during negotiations with Raytheon Technologies Corporation to supply Ukraine with the first two NASAMS missile systems. The Pentagon also used UCA to award Lockheed Martin a $476 million deal for restock contract of GMLRS precision missiles for HIMARS systems.
The order for 10,000 missiles for delivery by mid-2025, was bankrolled with funding approved by Congress in three installments, and they were put on the contract about one month after the Pentagon received the funding. The order was approved by Congress on October 1, and funds transferred on October 5.
According to the officials, before issuing the contracts, the Pentagon must receive a special approval from the U.S. Congress in the form of a cash tranche approved for the purchase. Once Congress approves the tranche, the Pentagon and the military can move quickly.
Bloomberg reports that Congress released the first batch of replenishment funds for Stinger missiles for Ukraine on May 3, and $489 million was on contract to Raytheon 22 days later.
In total, nine such tranches are reported to have been approved, including the minutia of restocking. For example, $7.3 million was sent to buy replacement M777 cannon tubes sent to Ukraine.
In other examples, $49 million was directed to replace the TOW-2 anti-armor systems transferred to Ukraine and $69 million will be spent on procurement of replacement artillery propellants, fuzes and primers.
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