Defence procurements often arise from urgent needs of the Armed Forces of Ukraine, leaving little time for tender procedures.
A typical method for selecting contractors in such cases is through simplified procurement announcements. However, another tool exists known as framework agreements. Frameworks allow maintaining high competitiveness among suppliers. Unlike simplified procurements, framework agreements restrict access to information about delivery locations, personalized supplier data, and their positions, ensuring security and protection.
Framework agreements come in two types: with open information and with information of limited or temporarily limited access.
The mechanism of an open information framework involves all participant data being public. It is more complex since contracts are signed between the client and all framework agreement participants. A notable feature is that qualified participants have primary prices, which are absent in closed frameworks.
A framework with limited or temporarily limited access to information, as stipulated by Cabinet Resolution No. 1275, involves public selection where anyone can see participant names and their EDRPOU (Unified State Register of Enterprises and Organizations of Ukraine) status for selection. However, documents provided by participants are not public. After procedures, a report is published indicating only the quantity and unit price.
According to current legislation, frameworks with limited or temporarily limited access to information can only be used by the State Operator For Non-Lethal Acquisition, the Defence Procurement Agency, and the State Special Communications Service.
Steps for procurement using framework agreements: 1️. Conducting qualification selection of framework agreement candidates. The review period for submitted applications is 10 working days, extendable to 15. The number of candidates included in the framework agreement must be at least three. 2️. Direct procurement using the framework agreement through open auctions or announcing requests for proposals among participants.
The minimum duration of a framework agreement is one year, with a maximum of two years.
Thus, the client conducts qualification of potential contractors once and can subsequently issue requests for proposals or hold open auctions with specific features.
If the client chooses to procure through a request for proposals, the electronic procurement system automatically assigns an auction. The auction results determine the winner with the most economically advantageous offer. Subsequently, the winner provides the necessary compliance documents and enters into a contract. Alternatively, if open auctions with features are chosen, procurement timelines increase not only due to the auction but also due to possible challenges to tender documentation, actions, or inactions of the client, as currently exists for regular auctions with features, notably through the Antimonopoly Committee of Ukraine.
The client retains the ability to exclude suppliers from the framework agreement. For instance, if a supplier's management has been prosecuted for committing a corruption offense or a corruption-related offense, if a participant has been declared bankrupt, or if a supplier has been held accountable for violations involving anti-competitive practices, among others.
The use of framework agreements enables the reduction of procurement procedure timelines and facilitates the ability to promptly enter contracts, particularly in cases of urgent military supply needs.
