Overview
- The Defense Department inspector general report released Monday found the Mesquite, Texas, plant produced no projectile metal parts that met Army specifications despite a $469 million investment.
- The Army was producing about 36,000 155 mm rounds per month as of March 2026 and now expects only about 71,000 rounds per month by September 2026 if Mesquite remains offline, short of the 100,000-per-month goal.
- 155 mm production is a two-step process that first forges metal projectile parts at one set of plants and then loads and packs explosives at other plants, and the metal-part stage is the current bottleneck limiting overall output.
- The IG recommended a formal review of the Mesquite contract and possible recoupment; the Army accepted the findings, is shifting work away from Mesquite, and General Dynamics Ordnance and Tactical Systems says it has agreed with Army customers on a path forward that includes additional company investment.
- U.S. stocks were depleted after sending millions of rounds to Ukraine, the shortfall has driven billions in Army spending and plans to modernize the Iowa plant and open load/pack sites in Kansas and Arkansas to try to reach up to 140,000 rounds per month by December 2027, which leaves near-term readiness and budgeting questions to watch.