The U.S. Army paid General Dynamics $533 million to build an artillery factory in Texas that ultimately failed to produce a single usable shell, according to an investigation by ProPublica published on August 26, 2026. Former workers described machines that frequently malfunctioned in unusual ways, including a key device that often cracked steel intended for shells and others that required workers to use sledgehammers to keep them operational.

The Army stated it exercises "rigorous oversight" and is currently evaluating contract performance, seeking recoupment of funds, and reallocating resources where vendors fail to meet contract specifications, as was the case with the General Dynamics factory. General Dynamics declined an interview but has asserted, based on a Department of Defense inspector general report, that it "met or exceeded requirements."

The Army ordered three production lines from Repkon, the equipment supplier, without confirming that these lines could produce shells meeting Army specifications. The service selected General Dynamics due to its unique artillery production experience but did not require the company to demonstrate full production capability with Repkon’s equipment before installation, citing that formal testing could not occur prior to full machinery installation.

A former worker expressed frustration over the slow progress, saying, "It was astonishing how little progress we would make, month after month, year after year," and noted speculation among employees about possible spying, though the Army has found no evidence of sabotage or espionage.

Despite the factory’s struggles and a partial halt of work last summer, the same General Dynamics unit has since secured $2.5 billion in new contract awards for distinct production lines and critical national defense needs unrelated to the Texas facility.

Sources