Ukraine's defence ministry starts transition to e-tendering for defence procurement

Ukraine's Ministry of Defence is gradually introducing competitive tendering procedures in defence procurement to increase transparency and improve the efficiency of public spending.

Source: Ukraine's Ministry of Defence (MoD), citing Deputy Defence Minister Mstyslav Banik during an event attended by the National Agency on Corruption Prevention (NACP), the Defence Procurement Agency, and representatives of the defence sector and the public

Quote from MoD: "The introduction of electronic tenders will enable more efficient use of public funds, increase transparency and ensure data security. Competition will improve product quality, and clear rules for manufacturers will support better planning and business growth. Digitalisation of procurement processes will reduce human interference and lower corruption risks."

Details: The Defence Ministry outlined the expected benefits of introducing electronic tenders, including improved efficiency and budget optimisation. This means tender procedures can reduce procurement costs, enabling the military to obtain larger volumes of goods without increasing expenditure.

Furthermore, competition between suppliers, as the Ministry of Defence noted, is expected to stimulate technological progress. As a result, manufacturers will develop their businesses and improve their products.

"The majority of procurement processes have been transferred to an electronic system. The digitalisation of procedures enables a significant reduction in human interference and corruption risks," the ministry noted.

Additionally, the electronic system ensures the security of participants' data, and total order volumes are distributed among several suppliers according to their actual production capacities.

According to the Defence Ministry, access to state tenders is now open to any company.

Quote from MoD: "A condition for participation remains the completion of mandatory checks, including verification of declared production capacities and security requirements. This will expand the range of suppliers available to the defence forces and, as a result, enable procurement at more competitive prices."

Background: In late May, Defence Minister Mykhailo Fedorov reported that the Defence Procurement Agency had signed contracts for a record number of 155mm long-range artillery rounds.

He added that the next step would be to scale up competitive procurement for FPV, mid-range and long-range drones. The minister said that a transition to tender procedures would take place in the summer "for all possible defence procurements".

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