On December 5th, 2019, the draft bill “On Defence Procurement” was voted by Verkhovna Rada in the first reading. This bill aims to achieve a fundamental change in the mechanism of pricing, a change in the system of product quality control and creation of the conditions for efficient coordination between producers and customers. The new defence procurement policy is supposed to promote minimization of corruption risks, raising the level of transparency and increasing fair competition in this sector.
In particular, this bill stipulates the four defence procurement procedures:
- Reduced bidding with the electronic system that is used for procurement of goods, works and services that which is not related to the state secret
- Reduced bidding without the electronic system which will take place within the martial law statute
- Bidding with the limited participation which includes two stages: qualifications-based selection and negotiation
- And the closed procedure to procure defence goods, works and services which pose a state secret.
For the first time ever the draft bill in Ukraine’s defence sector was developed involving all the key stakeholders including the relevant government bodies, state and private arms producers and the civil society. In particular, the participants included MPs, the representatives of the Ministry of Defence, the Ministry of Economy, Trade and Agriculture, the President’s Office, the Security Service of Ukraine, the state defence conglomerate Ukroboronprom, the League of Defence Enterprises of Ukraine, the Assosiation of Producers of Arms and Military Equipment of Ukraine, the Association ‘Ukrainian Defence and Security Manufacturing’. The Independent Defence Anti-Corruption Committee was actively involved in this process as the coordinator of civil society and expert community. NAKO will monitor and further inform on the developments pertaining to the draft law.