What has changed in six months of defence procurement reform?
The State Operator For Non-Lethal Acquisition summarized its activities over six months of operation. During this period, 391 contracts worth over 47 billion UAH were signed. So far, 38% of the purchased goods have been delivered, with the remaining deliveries planned by the end of the year. Additionally, 94% of procurements are conducted through the Prozorro electronic system. Savings amounted to over 13 billion UAH, or 22% of the budget allocated to the agency. Ensuring continuous and high-quality logistical support for the Ukrainian Armed Forces is the key task of the agency.
In the first six months of operation, thanks to an effective procurement strategy and proactive market communication, it was possible to significantly expand competition and attract companies that had not previously participated in supplying the Armed Forces.
Specifically in the area of material supplies:
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232 contracts were signed for a total of 14.8 billion UAH.
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Savings amounted to 2.7 billion UAH (15.3%).
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It was also possible to significantly expand competition and attract 24 new suppliers to DOT procurements. Currently, 97 companies supply material goods for the Armed Forces.
In the area of fuel and lubricants:
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82 contracts were signed with 23 suppliers for a total of 11.3 billion UAH.
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Savings amounted to 5.3 billion UAH (31.6%).
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Achieving this level of savings was possible due to accurate determination of the expected procurement costs and the use of regulations that allow for the purchase of fuel and lubricants for the needs of the Armed Forces without VAT.
DOT also made significant changes in the area of food and provisioning:
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Contracts were signed for a total of 21.2 billion UAH.
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The average cost of a food set is 113 UAH.
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Notably, changes to the food product catalog were implemented. Based on feedback from military personnel and suppliers, items that were rarely or never ordered were removed from the catalog. This significantly reduced the catalog's cost for potential suppliers, thereby increasing the engagement of new suppliers.
We are sincerely grateful for the support of international partners, as DOT has established cooperation for experience exchange with procurement agencies such as DALO, FMV, and Expertise France. Together with EUACI, we developed the anti-corruption infrastructure of DOT and are preparing for certification under the international standard ISO 37001:2016.
We also conduct systematic communication with security attachés and embassies of NATO countries. In particular, we are grateful to the program of the Special Advisor on Defense Issues of the United Kingdom for regular and comprehensive support in reforming state procurement.
Summarizing six months of reform, we can state that with us:
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more reliable – because you always know whom to contact;
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simpler – we automate and digitalize processes;
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more confident – because the saved funds are directed to cover additional needs;
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more transparent – we ensure the maximum possible openness during wartime and build a system with zero tolerance for corruption;
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better – because we listen to you and improve the quality of support.
Thank you for your trust and for constantly motivating us to develop.
