The Army says that UAPL 1’s equipment did not meet the “technical requirements of the contract.” Even so, GD-OTS continued shipping similarly suspect UAPL 3 equipment.

The United States Army has issued a “show cause” letter to General Dynamics Ordnance and Tactical Systems (GD-OTS) over its questionable management of three new 155mm artillery round production lines. GD-OTS has until July 10 to justify construction delays and improper equipment. The letter suggests that an unsatisfactory answer could result in the Army pulling the contract and awarding it to another firm.

The three new Universal Artillery Projectile Lines (UAPL), located in Mesquite, Texas, were contracted in response to the Ukraine War’s prolific expenditure of artillery shells. American stocks were quickly depleted as aid was rushed to Ukraine, and then to Israel following the October 7 attacks in 2023. The Army requires a 100,000 round per month production rate to resupply US ordnance magazines while also supporting those two wars. The new UAPLs in Mesquite will make shell casings and other metal parts needed for the complete 155 rounds.

The Army’s letter notes that UAPLs 1 and 2 have overrun their completion dates of November 22, 2024, and April 16, 2025, respectively, and that UAPL 3 is expected to miss its contract date of March 3, 2026. These failures have caused the postponement of six test dates so far, with more to come. UAPL 3 is now projected to come online sometime in 2027.

GD-OTS is also experiencing quality control problems. The Army says that UAPL 1’s equipment did not meet the “technical requirements of the contract.” Even so, GD-OTS continued shipping similar UAPL 3 equipment, which will also likely fail to meet specified standards. The company is apparently aware of its issues, since it suspended work on UAPL 3 on May 29 “on its own accord”—two full weeks before the show cause letter. GD-OTS did not consult with the Army before implementing the suspension.

The Army’s letter states: “Because GD-OTS has failed to perform the UAPL Task Orders within the timeframe required by the contractual terms, the USG (US Government) is considering terminating” the contract. A final decision will be reached only after the July 10 GD-OTS response.

The Army Contracting Command (ACC), which issued the show cause letter, issued a statement to Breaking Defense confirming that it expects GD-OTS “to provide information on how they plan to fulfill their obligations on this contract.” GD-OTS confirmed that the show cause letter addresses the Mesquite, Texas UAPLs but referred all other questions to the Army.

The ACC did not indicate which companies might be considered to replace GD-OTS, should the contract be revoked. Either way, the UAPLs must go forward, as American ordnance stocks have dwindled dangerously since early 2022, and the wars in Ukraine and Gaza continue. These new production lines will turn out crucial parts required for final assembly, a process that is proving to be a bottleneck in the restocking program.

With a stated goal of 100,000 rounds per month by October, 2025, the US was only producing 18,000 complete rounds as of September 2024, growing to 36,000 rounds by June of this year. But the delays in getting the Mesquite UAPLs online will extend the 100,000 round per month goal to, at least, early 2026.

Failure to meet this goal in a timely manner will further limit American stocks while potentially affecting the aid available to Ukraine and Israel. The Army has long described artillery as the “King of Battle,” a perception reinforced by the Ukraine War in particular. Should American forces need to deploy in the near future, the Army and Marine Corps could find themselves with an unenviable logistical problem.