The Ministry of Defense begins transitioning defense procurements to electronic tenders – what will change

The Ministry of Defense is gradually implementing competitive tender procedures in defense procurements, transitioning to an electronic format for conducting auctions. According to the ministry, the goal of the changes is to make procurements more transparent, increase the efficiency of budget spending, and provide the military with higher quality supplies.

This was reported by the Deputy Minister of Defense of Ukraine, Mstyslav Banik, during an event attended by representatives of the National Agency on Corruption Prevention (NACP), the defense sector, the Defense Procurement Agency (DPA), and the public. The meeting discussed the implementation of recommendations from the Strategic Review of Ukraine's Defense Procurement System and improving the transparency and accountability of procedures.

Transition to electronic tenders: the essence of the changes

The DPA has already started implementing electronic tenders in procurements for the Defense Forces. The Ministry of Defense notes that defense procurements in Ukraine are already among the fastest in the world, and the new approach aims to make them also among the most transparent.

The introduction of the electronic format is expected to ensure more efficient use of funds, increase the openness of procedures, while maintaining an appropriate level of data protection. A reduction in the influence of the human factor and corruption risks is also anticipated.

"Changing the defense procurement system during an active phase of the war is a great responsibility. We act as prudently as possible, working through each fundamental change on individual procurements and scaling those approaches that have shown real results," said Mstyslav Banik.

Examples of procurements already conducted

One example of the new approach was the procurement of 155-mm artillery ammunition. As a result of a competitive procedure with price reduction bidding, it was possible to save over 16% of funds, which allowed increasing the volume of procurement by tens of thousands of shells.

Another example is the procurement of 5,000 pickups for the military. The tender has already been conducted, contracts are at the signing stage, and the expected savings are significant. The procedure was framework-based and lasted less than a week from announcement to conducting the auction. Four winners were selected based on the results.

Main effects of implementing electronic tenders

The Ministry of Defense identifies several key areas that the new system should impact:

Efficiency and budget optimization – reducing procurement costs will allow supplying larger volumes to the military with the same funds.

Product quality – competition among suppliers will stimulate production development and product improvement.

Transparency – transferring procedures to an electronic system reduces the influence of the human factor and corruption risks.

Data security – the electronic system will ensure the protection of participants' information.

Diversification of supply – distributing orders among several suppliers reduces the risk of supply disruptions.

Open market – a wider range of companies will be able to participate in tenders provided they meet verification requirements.

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