Taxpayers Lose $533 Million on Texas Artillery Plant That Produced No Shells
The U.S. Army spent $533 million on a General Dynamics artillery factory in Mesquite, Texas, but the site never delivered a usable 155 mm shell.
In a rushed, no-bid procurement, the Army hired General Dynamics, which subcontracted a Turkish firm to supply novel flow-forming machinery for a Texas artillery plant. The robots and presses suffered frequent fires, mechanical failures and safety hazards, preventing the factory from producing any usable 155 mm shells despite $533 million in funding. The Department of Defense inspector general confirmed that two of three production lines were stopped in August 2025, yet General Dynamics continued to receive contract awards totaling $2.5 billion.
The company declined comment, while its spokesperson accused the reporting of mischaracterizing its safety record. To remedy the failure, General Dynamics announced a partnership with the AI startup Deterrence to retrofit the site, even as it replaces most Turkish equipment with traditional presses. The Army says it will pursue discounts to recover costs but has not pursued legal termination. Critics warn the episode illustrates a broader lack of accountability in Pentagon spending.
Why it matters
It shows how expedited defense contracts can waste billions without delivering needed equipment.
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