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14 December, 2021
Defence Minister commits to demonopolizing and enhancing procurement procedures
Defence Minister commits to demonopolizing and enhancing procurement procedures
The procurement system of the Armed Forces of Ukraine will be amended in 2022. This was stated by the Defence Minister Oleksiy Reznikov in his column for Army Inform.
He said that today, certain types of goods for the Army are procured from a limited number of suppliers, sometimes without any competition whatsoever, e.g., tank oil is de facto procured from a single supplier. Other suppliers are equally able to offer appropriate-quality oil, but they are blocked for formal reasons, Reznikov says.
The risks of procuring from a single source can be very well demonstrated by a scandal involving a monopolist company that was supplying spoiled goods to the Army. For more details, please see here.
The Minister promised to divide lots as the first step. This will destroy the existing system of favoring companies “totally dominating within this or that segment.” Improving technical specifications for certain goods, works, and services will boost competition among other companies whose products comply with the specifications.
NAKO hopes that increased competition in procurement will help raise its effectiveness and decrease corruption risks. We will be closely monitoring the reforms and their results.