Manufacturing problems are dashing the U.S. Army’s plans to boost production of urgently needed 155-mm howitzer shells, a Pentagon watchdog warned.
Despite a goal of 100,000 rounds per month by October 2025, the Army had only managed to produce 36,000 rounds per month as of March 2026, according to a report published this month by the Department of Defense Inspector General.
Shell production requires first building the projectile at a metal parts factory, followed by packing the shell with explosives at another facility. But this means “projectile metal part production is the limiting factor for reaching the 100,000 round-per-month goal for 155-mm artillery rounds,” the report noted.
The Army has not been able to forge enough metal parts to ramp up production of projectiles. In particular, “at a contractor-owned, contractor-operated facility in Mesquite, Texas, the contractor has been unable to produce any projectile metal parts that meet contract specifications,” the report reads.
After investing $469 million, the Army opened a modular metal parts factory in Mesquite, Texas in 2024. The Universal Artillery Projectile Lines facility — operated by General Dynamics Ordnance and Tactical Systems — was supposed to use “modern manufacturing practices, high levels of automation and digital data capture ability” to forge large numbers of large-caliber metal parts for shells, the Army announced at the time.
That optimism proved premature.
Officials at the Army’s Capability Program Executive Ammunition & Energetics, or CPE A&E, “issued the contract and accepted the risk associated with purchasing and adapting unique production equipment which had not been proven to meet U.S. specifications,” the IG report said.
To save time, the Mesquite factory tried to adapt manufacturing lines originally designed to make parts for the M107 155-mm shell — which dates back to 1958 — rather than the newer M795.
CPE A&E “accepted the risk associated with the contractor’s plan to purchase and adapt M107 metal part production equipment to produce a newer variant of the 155-mm projectile metal parts at different specifications,” said the report.
The report noted that some Army officials had concerns regarding an older ammunition plant in Scranton, Pennsylvania, that included “separate ongoing problems with the contractor in terms of responsiveness, equipment maintenance, and timeliness. Those officials expressed concern to the evaluation team that ACC [Army Contracting Command] did not open the contract for the Mesquite facility to competition from other contractors.”
The bottleneck at the Mesquite plant left the Army’s three existing plants in Scranton, Wilkes-Barre, Pennsylvania, and Ingersoll, Canada, to try to pick up the slack.
Amid voracious expenditure of 155-mm rounds by Ukraine that depleted U.S. stockpiles, DoD issued a congressionally-mandated plan in 2022 to modernize howitzer ammunition production. DoD’s 2025 National Defense Industrialization Strategy Implementation Plan aimed at churning out 100,000 155-mm shells per month by October 2025.
The Army’s efforts have borne some fruit, with production nearly tripling to 14,000 shells per month to 36,000. By modernizing the Iowa Army Ammunition Plant and creating two new facilities in Kansas and Arkansas, the Army hopes to load, assemble and pack 140,000 155-mm rounds by December 2027.
In the meantime, the IG suggested the Army could get a refund.
The report recommended that the Army review the contract for the Mesquite facility to determine how the money was spent and whether the DoD can recoup any funds and also “determine whether the Mesquite contract was appropriately issued.”
Michael Peck is a correspondent for Defense News and a columnist for the Center for European Policy Analysis. He holds an M.A. in political science from Rutgers University. Find him at theuncommondefense.com. His email is mikedefense1@gmail.com.
