WASHINGTON DC: The United States (US) is providing a new round of military aid for Ukraine valued at up to $300 million, the first such announcement since late December, in what defense officials have called an “ad hoc” package made possible through U.S. Army procurement savings.
National Security Advisor Jake Sullivan announced the 55th presidential drawdown authority (PDA) package at the White House and said it would include artillery rounds and munitions for HIMARS, weapons desperately needed on the Ukrainian front lines where shortages abound.
The funding for this package came from savings garnered in “multiple contract actions over multiple months” where the Army was able to “buy things at a better price” than initially budgeted, according to senior defense officials who spoke to reporters on conditional of anonymity ahead of the White House announcement.
“This is a bit of an ad hoc or one-time shot. We don’t know if or when future savings will come in, and we certainly can’t count on this as a way of doing business,” one of the senior defense officials said.
In one example provided by the officials, the Army had initially estimated the cost of 25 mm rounds at $130 but was able to negotiate the price down to $93.
The savings were then placed back into the U.S. funding pot for Ukraine aid, a process that has happened several times but wasn’t considered as newsworthy during those times because the fund wasn’t “broke” before, according to defense officials.
(VOA)
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