The Ministry of Defense of Ukraine is introducing a new diversification strategy in the procurement process of unmanned aerial vehicles (UAVs), ground robotic complexes (GRCs), and ammunition for the Armed Forces of Ukraine. This decision has been made to ensure a more stable supply of vital resources and to achieve an optimal balance between price and supplier capabilities, which is especially important in wartime conditions.
This is reported by Finway
Key Principles of Procurement Diversification
According to the new approach, during the procurement of defense products, the Defense Procurement Agency will not be limited to a single supplier. If two or more acceptable bids are present in the tender, the order will be distributed among several participants. This approach minimizes risks associated with potential force majeure circumstances, such as damage to production lines, as well as possible unfair actions by individual manufacturers.
The distribution of procurement volumes will be carried out according to a special formula. If a participant offers a price that exceeds the lowest bid by more than 30%, their proposal will not be considered. In cases where several participants present products from the same manufacturer, only the most advantageous price proposal will be taken into account. When using raw materials provided by the customer, their cost must be included in the calculation.
Contract Execution Control and New Opportunities for the Military
An important condition for receiving an order is the actual capability of the supplier to fulfill the contract. If for any reason a company cannot deliver its volume of products, the remainder will be redistributed among other procurement participants. The final decision on distribution is approved by the collective body of the Agency, after which the drafts of state contracts are sent for approval to the Ministry of Defense of Ukraine.
“Diversifying contracts allows us not to depend on a single manufacturer and reduces the risks of supply disruptions. We were expecting this decision – it is logical in wartime conditions. This approach also fosters competition among manufacturers, as the contract volume is distributed among several participants and depends on their ability to fulfill deliveries,” noted the Director of the Defense Procurement Agency DOT, Arsen Zhumadilov.
Additionally, the Defense Procurement Agency DOT of the Ministry of Defense of Ukraine has recently provided military units with the opportunity to independently order ground robotic complexes through the specialized weapon marketplace DOT-Chain Defence. This allows units to select and obtain the necessary GRCs to carry out combat and logistical tasks without risking personnel in high-risk zones.
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