The monitoring information is up to date as of 7 January 2025.
The State Logistics Operator (the DOT, also known as the SLO) closed December 2024 with a record number of both announced and successfully completed procurements. In December 2024, the agency announced tenders worth UAH 23 billion and signed contracts worth UAH 31.3 billion based on the results of procurements conducted both in December and earlier. At the same time, due to technical errors and lack of bids, the agency had to cancel tenders worth UAH 4.5 billion. StateWatch analysts examined the effectiveness of DOT procurements in December and proposed systemic improvements to procurement processes.
In December, DOT announced 161 tenders (183 lots) with an expected value of UAH 22.97 billion. The largest amount of funds was allocated for purchasing material support (UAH 10.3 billion), while UAH 6.87 billion and UAH 5.18 billion were allocated for food and fuel, respectively.
Most of the procurements (174 lots worth UAH 22.96 billion) were conducted under the simplified procedure. A total of 134 companies took part in tenders during the month, and the average number of bids per tender was 3.67.
DOT contracts concluded in December 2024
In total, the agency concluded 162 contracts worth UAH 31.28 billion. DOT spent 56% of the contract funds (UAH 17.55 billion) on meal sets, field rations, and catering services. DOT allocated 28% of funds (UAH 8.81 billion) for material support, 12% (UAH 3.76 billion) – for fuel, and the rest – for other goods and services.
Earlier, in November, the DOT reported that the agency would announce procurements for 2025 in advance, planning to spend more than UAH 20 billion on food for the first half of 2025 and UAH 2.5 billion on material support for the whole of 2025. Some of these procurements were completed in December.
Procurements of food products
In December, DOT signed 13 contracts for the supply of food products and two other contracts for catering services worth a total of UAH 17.5 billion. MIT PROM LLC has been awarded the largest contract to supply 39.4 million meal sets worth UAH 5.2 billion. Among other companies is BUSK CANNERY LLC, which was contracted to supply 31.2 million sets for UAH 4.3 billion (with the highest price per set at UAH 138.3). In addition, the agency signed contracts with KONTRAKT PRODREZERV 5 LLC (UAH 2.7 billion), ADELIN LLC (UAH 1.6 billion), HARNA STRAVA LLC (UAH 1.3 billion), ASIKS GROUP LLC (UAH 968.8 million), TRADE POLTAVA LLC (UAH 827.7 million) and MITFORM LLC (UAH 440.4 million). In total, these companies are to supply 131.8 million meal sets at an average price of UAH 128.84.
Separate contracts for providing catering services to the military and cadets have been awarded to Taras Shevchenko National University of Kyiv and TRADING HOUSE MYSTETSTVO SMAKU LLC. The total savings under these contracts amount to UAH 3.04 billion.
In addition, in December the agency contracted 66 668 field rations from PARTNER UKRAINE LLC at a price of UAH 429.84 per ration for a total of UAH 28.7 million. The savings under this contract amounted to UAH 2.3 million. These rations are designed to be consumed by the military in the field. The rations weigh 2 kg each and have a nutritional value of 3,577 kcal. The rations come in 14 different variations, which include breakfast, lunch, and dinner. The meals come with crackers, coffee, tea, jam, sugar, spices, chewing gum and plastic cutlery.
The agency also purchased 31 million kg of bottled drinking water (in 1.5-litre containers) from OBOLON LLC for UAH 653.13, which is UAH 21.07 per 1.5 litres.
Relaunch of the pilot food procurement model
Separately, on 27 December 2024, DOT announced the first procurement under the pilot model worth UAH 3.192 billion to supply 20.6 million meal sets and 4 050 sets of animal food. This model envisaged a separate selection of 75% of producers of the main product categories through open platforms, who then were to be contracted by the suppliers selected at tenders. The model was to cover six regions (Kyiv city, Kyiv, Vinnytsia, Zhytomyr, Cherkasy and Kirovohrad regions) and included trilateral agreements and control through distribution centres.
However, due to the lack of bids, on 30 December, the agency made significant changes to the procurement model and conditions: the territory was limited to Kyiv city and Kyiv region, the selection of all 360 product categories through signal bidding was introduced, and the number of framework agreements was increased from five to eight (for certain categories: vegetables and fruits, sausage products, meat, dairy products, fish, groceries, eggs, bread). The changes were implemented after additional consultations with logistics operators and distributors.
In practice, the pilot model is currently being implemented as follows:
1. DOT first conducts a qualification-based selection of producers in eight product categories (vegetables, meat, dairy, etc.). For this purpose, selection for the framework agreement is announced, where the qualification requirements, production capacity and experience of producers are verified.
2. After forming a pool of qualified producers (at least three in each category), DOT announces signal bidding during which producers offer prices for their products. At this stage of signal bidding, pre-qualified manufacturers submit their price proposals through the Prozorro system, which determines ceiling prices and establishes a register of suppliers who commit to deliver at these rates throughout a specified period.
3. Then separate biddings are held to select logistics service providers. The winners of these biddings have to purchase products from the selected producers at the prices set during the signal bidding. They receive a percentage of the products’ value for logistics and service.
4. The process is completed by signing trilateral agreements between DOT, producers and suppliers. These agreements fix product prices, delivery volumes, logistics costs and responsibilities of the parties. Quality control is carried out through distribution centres, where DOT can inspect products and impose sanctions for violations of the terms and conditions.
Following the announced changes under the updated pilot model, two companies took part in the new tender for the supply of 9 298 170 meal sets for the military and 1 830 sets of animal food: PONTEM.UA LLC and UT COMPANY LLC. Finally, the agency concluded a contract worth UAH 1.43 billion with UT COMPANY LLC.
Contracted fuels and lubricants
In the category of fuels and lubricants, DOT signed contracts worth UAH 3.78 billion. The main supplier of fuel is PJSC UKRNAFTA, which will supply the army with diesel DP-Arc-Euro5-B0 (65.2 thousand tonnes), as well as A-80-Euro3(4)-E5 (10.3 thousand tonnes), A-92-Euro5-E5 (4 thousand tonnes) and A-95-Euro5-E5 (450 tonnes) petrol, and fuel for reaction engines РТ (7 thousand tonnes). At the same time, the agency contracted various types of motor oil for a total of UAH 21.9 million. The winners of the tender are: RESOURCE-OIL-A LLC, ARIAN TECHNICAL OIL PLANT LLC, KSM-TRADE LLC, TD NEW ENERGY LLC.
Personal equiment and uniform
In December, DOT’s uniform and equipment procurement totaled UAH 8.8 billion. This included 30,000 modular body armors for UAH 758.6 million, split between two suppliers: TEMP-3000 LLC (20,000 units at UAH 25,400 each) and KHARKIV PLANT OF PERSONAL PROTECTIVE EQUIPMENT LLC (10,000 units at UAH 25,200 each), resulting in savings of UAH 108.6 million.
Notably, KHARKIV PLANT OF PERSONAL PROTECTIVE EQUIPMENT LLC had previously told StateWatch in summer 2024 that their modular vest’s market price was UAH 35,000, though throughout the year they maintained contract prices below UAH 30,780 per unit.
The agency also acquired 5,000 plate carriers at UAH 15,506 each and 90,000 pairs of knee and elbow pads at an average price of UAH 913 per item. Additionally, TEMP-3000 LLC was contracted to supply 30,000 ballistic helmets for UAH 218.4 million (UAH 7,285 per unit), saving UAH 14.1 million from the expected cost.
Uniform for 2025
In the last month of 2024, DOT also conducted large procurements of uniforms for the military. The largest procurement was for summer field suits for men: almost 997 thousand suits worth UAH 1.79 billion were purchased. The volume was divided among 11 manufacturers, with whom the agency signed 13 contracts, which ensured broad competition. The average price per suit was UAH 1 762, with savings of UAH 57.7 million.
The agency also purchased 500 thousand summer suit trousers for UAH 389.2 million, distributing the order among four manufacturers: NIKA-TEXT PLUS, TERRA-TEX, ASTRA LUX and VERSAHEM. The average price per item was UAH 785, which saved UAH 27.3 million.
For the winter period, 60 thousand insulated jackets worth UAH 75.1 million were purchased from OLTEX and TEXTILE-CONTACT. The price per jacket was UAH 1 252. Additionally, 40 thousand tracksuits were purchased from MIK LLC at a price of UAH 1 921 per suit, for a total cost of UAH 76.8 million.
In addition, the procurement of footwear was also large: 550 thousand pairs of summer boots for UAH 1.2 billion and 300 thousand pairs of low-cut boots for UAH 645.3 million.
Two notable procurements (divided into 3 lots) resulted in 3 contracts for 550,000 pairs of summer boots. However, instead of distributing the volume across multiple lots as was previously done, DOT concentrated most of the purchase – 487,000 pairs worth 1.069 billion UAH – into a single lot within one procurement. This lot was awarded to Talanlegprom LLC. By deviating from their usual practice of splitting large orders into smaller lots to encourage competition, DOT effectively ensured that nearly 90% of the summer boots would come from a single supplier.
This single lot of 487,000 pairs represents approximately 80% of the Ukrainian Armed Forces’ total summer boot requirements for 2025. When StateWatch inquired, DOT explained their decision to split the procurement into two tenders (3 lots) was based on several factors from the commercial proposals they received: available certification documentation, per-unit costs, and manufacturers’ production capabilities. StateWatch’s analysis suggests these factors significantly influenced how DOT distributed the volumes across the lots.
Among other men’s and versatile uniform items, the agency also signed contracts for padded jackets, combat shirts, combat caps, winter hats, men’s underpants, etc.
Uniforms and underwear for servicewomen
The agency also signed contracts for the supply of 30 thousand summer field suits for servicewomen from PJSC Astra Lux at a price of UAH 1,900 per set, as well as underwear: 50 thousand tops at a cost of UAH 201 per item and 50.44 thousand underpants for UAH 125 per item.
Household goods
Among the goods for the military’s everyday life, 300 thousand sleeping bags were purchased from MIK LLC for UAH 1.27 billion (UAH 4,242 per item). The savings amounted to UAH 15.6 million.
The agency purchased 2 220 sanitary barracks tents worth UAH 256.5 million (UAH 99.5 thousand per unit) and 980 tents for sanitary and technical purposes worth UAH 69.1 million (UAH 742 per unit) from SIVERTEX LLC. To equip recreational facilities, 100 thousand sleeping mats were purchased from EKHOKOR LLC at UAH 417 per item for a total cost of UAH 41.7 million.
Cancelled procurements
In December 2024, eight procurements (12 lots) totalling UAH 4.6 billion for the needs of the Armed Forces of Ukraine were cancelled.
The largest is the procurement of meal sets under the pilot model with an expected value of UAH 3.192 billion to supply 20.6 million food packages and 4 050 sets of animal food. The procurement did not take place due to the lack of bids from suppliers. More details on the terms of the pilot model are described in the Food Procurement section above.
Potential participants had many questions about storage facilities, the calculation of the service component and the low purchase prices for some products. For example, the price for eggs was set well below the market price: UAH 5.6 and UAH 5.9 per egg. Due to insufficient explanation of the new procurement system and fears of possible sanctions for calculation errors, participants refrained from submitting bids.
The second major unsuccessful procurement was a tender for the purchase of diesel fuel worth UAH 1.23 billion. It was planned to procure 28.5 thousand tonnes of fuel at UAH 43 226 per tonne, dividing the tender into three lots, but no bids were received.
The procurement of 200 thousand sets of individual heating means worth UAH 813.6 million has also failed. The procurement was cancelled due to inaccuracies in the technical specification regarding the means completeness. On 20 December 2024, the DOT received clarifications from the Central Directorate for the Material Development of the Ministry of Defence on the planned changes to the technical specification TC A01XJ.13995-441:2023 (01). As the clarification period had already ended on 17 December, it was impossible to make changes to the procurement. This could have led to ambiguous interpretation of the requirements by bidders, so the procurement was cancelled due to the failure to eliminate violations of the law.
Challenges
In December 2024, a number of challenges in DOT procurements were identified, including:
1. Failure to divide a large volume of summer boots procurements into lots. DOT placed 487 thousand pairs of summer boots in one lot, which was won by Talanlegprom LLC. This contradicts the earlier practice of dividing large procurements into lots to increase competition.
2. Challenges in implementing the pilot food procurement model. The first attempt to procure meal sets under the new model failed due to a lack of bids. Even after narrowing the geography and increasing the number of framework agreements from five to eight, only two companies participated.
Recommendations:
to the DOT:
1. Divide large procurement volumes into lots to ensure competition, especially in segments with a limited number of producers.
2. Conduct several rounds of consultations for the market to ensure the effective functioning of the new food procurement model.
to the MoD:
1. Include female body armour, winter uniforms and underwear in the List of Goods for 2025.
2. Separate the parts of the female summer field suit into jacket and trousers for a more convenient selection of uniforms for servicewomen.
The DOT, which has been responsible for procuring fuel, uniforms, and food for the military since December 2023, was established as part of the anti-corruption procurement reform of the Ministry of Defence.
This monitoring was supported by the Office of the United Kingdom’s Special Defence Advisor and delivered through the EDGE Foundation in collaboration with StateWatch.
