Information current as of 8 July 2025
– In June, the DOT announced 102 tenders (128 lots) totalling UAH 7.97 billion.
– 56 contracts worth UAH 20.35 billion were concluded, of which 91% (UAH 18.58 billion) were for food procurement.
– In the material equipment category, for the third consecutive month, part of the procurements failed to proceed, predominantly winter uniforms worth UAH 476.28 million.
– The first procurements of adaptive clothing and hygiene kits for wounded servicemen worth approximately UAH 170 million were launched.
– In June, the agency did not announce new procurements under framework agreements for the updated food provision model, reporting completion of the first stage of the pilot programme in Kyiv and the region.
– The court rejected the DOT’s lawsuit seeking to overturn the State Audit Service conclusion regarding violations during body armour procurement.
StateWatch analysts examined June’s procurements available on Prozorro and proposed recommendations for process improvements.
In total, during June, the State Logistics Operator announced 102 tenders (128 lots) with an expected value of UAH 7.97 billion. The majority of purchases (UAH 7.67 billion) were conducted under simplified procedures. Throughout the month, 72 companies participated in the tenders, whilst the average number of bids per tender stood at 2.46.
Food Procurements
In June, the DOT concluded 18 contracts for the supply of food for servicemen, totalling UAH 18.58 billion. The procedures achieved savings of UAH 6.27 billion.
The majority of contracted funds (UAH 18.52 billion) comprised 16 contracts for the supply of 142.27 million food sets according to the Catalogue for personnel and 28,370 sets for feeding animals. Delivery is planned to all regions except Kyiv and Kyiv Oblast, where the updated provision model operates.
The largest contract volumes were secured by MIT PROM LLC for the supply of 29.2 million sets totalling UAH 3.76 billion, GRANPRI LTD LLC for 26 million sets worth UAH 3.37 billion, and TRADE GRANIT INVEST LLC for 23.2 million units worth UAH 3 billion.
Meanwhile, following monitoring of one of the procedures, the State Audit Service identified violations of legislative requirements. Specifically, the DOT restricted the possibility for one participant to conclude contracts for more than one lot, citing “avoiding supply disruptions” as justification. Consequently, the agency rejected the most economically advantageous offers from OKHTYRKA MEAT PRODUCTS LLC for two lots – No. 1 and No. 3.
As a result, for lot No. 1 the selected offer from TRADE GRANIT INVEST LLC was UAH 53,687,600 higher than the lowest bid, whilst for lot No. 3 MIT PROM LLC was chosen with an overpayment of UAH 43,560,000.
Following the audit findings, the State Audit Service mandated the termination of the already concluded contracts, justifying the agency’s actions as contrary to legal requirements. The DOT, in turn, appealed to the Kyiv District Administrative Court to challenge the decision.
Additionally, the agency concluded two separate contracts for the procurement of daily dry rations totalling UAH 61.55 million, specifically:
– PREMIUM SERVICES LLC will supply 120,337 sets for UAH 33.14 million (UAH 275.4 per set);
– KHODORIV MEAT PROCESSING PLANT LLC will provide 120,344 sets for UAH 28.41 million (UAH 236.1 per set).
Throughout June, the DOT did not announce procurements under framework agreements for implementing the pilot food provision model for the first time in six months. The agency reported completion of the first stage of implementing the updated food supply model in Kyiv city and region. Following the pilot results for the first half of 2025, tripartite agreements were signed between the DOT, logistics operator UT COMPANY, and manufacturers. Within the signal tenders, 164 manufacturers were qualified for supply. On average, 500 tonnes of products were delivered weekly to distribution centres, with total deliveries over this period amounting to 5.56 million kg.
Petroleum, Oil and Lubricants
In June, the agency concluded 23 contracts for the supply of petroleum, oil and lubricants and chemical products totalling UAH 1.68 billion. The State Logistics Operator managed to achieve savings of UAH 182.18 million.
Diesel fuel represented the largest share of POL contract value – 35,500 tonnes worth UAH 1.08 billion. Savings from the expected value amounted to 13%.
The agency also contracted 3,000 tonnes of A-80 grade petrol for a total of UAH 151.95 million, 2,000 tonnes of A-92 for UAH 102.64 million, and 1,060 tonnes of A-95 for UAH 54.85 million. Additionally, 7,000 tonnes of jet engine fuel were purchased for UAH 249.83 million. All contracts for diesel, petrol and jet fuel were concluded with UKRNAFTA PJSC.
Approximately UAH 27.05 million was spent on lubricants. The largest expenditure was allocated to the procurement of CI-4/SL motor oil worth UAH 7 million, supplied by EURO OIL PRODUCTION LLC.
UKRNAFTA PJSC remains the primary supplier of diesel and petrol. The DOT also concluded contracts with nine other companies for the procurement of oil, lubricants and chemical products.
Material Equipment
For material equipment procurement, the DOT concluded 6 contracts totalling UAH 72.62 million. Total savings from the procurement results amounted to UAH 6.48 million.
The largest contracted value was for protective load-bearing belts, specifically from TD SKYS LLC for the supply of 40,000 pieces worth UAH 34.59 million, and from COLTRAIN LLC for UAH 8.70 million for 10,000 units. Separately, the agency also purchased 90,000 trouser belts at an average price of UAH 79.9. The DOT also procured 5,000 wind- and waterproof winter jackets (Type 1) from VERSAHEM LLC for UAH 14.60 million (UAH 2,920.5 per unit). Additionally, the agency signed a contract with EKVIPTORG LLC for the supply of 10,000 protective goggles worth UAH 7.49 million (UAH 749 per unit).
Overall, contracts in the material equipment category were concluded with six companies in June. TD SKYS LLC received the largest contract value.
The DOT also launched centralised provision of adaptive clothing and hygiene kits for wounded servicemen for the first time in June – so-called “wounded care packages”. The first procurements of adaptive clothing worth approximately UAH 170 million were announced. Deliveries are planned partly in Q3 and also in Q4 2025 to four unified supply centres.
Unsuccessful Procurements
In June, 25 tenders (36 lots) totalling UAH 4.55 billion could not be completed. In the material equipment category, 16 tenders with an expected value of UAH 476.28 million were cancelled.
The significant sum of failed tenders was predominantly related to the cancellation of a tender for food sets according to the Catalogue worth UAH 3.56 billion. The agency cancelled the tender due to a technical error regarding product volumes.
Overall, material equipment procurements under simplified procedures have failed to proceed for the third consecutive month due to lack of bids. This was caused by the sharp reduction in expected costs for a range of textile products in April (2-21% compared to prices in last year’s contracts), leading to suppliers’ subsequent refusal to participate in tenders. Despite increasing the expected costs for a range of goods to last year’s levels, the situation remained unchanged – procurements were again cancelled due to lack of bids. This is covered in detail in the May monitoring report.
Specifically, the agency was unable to complete procurements for:
– 50,000 wind- and waterproof winter trousers (UAH 1,948.56 per unit);
– 10,000 combat rucksacks (UAH 1,303.97 per unit);
– 20,000 wind- and waterproof winter jackets (UAH 2,950 per unit);
– 500 suits with rubber boots for pontoon bridge operators (UAH 8,640 per set);
– 10,000 sets of mid-season underwear (UAH 347.44 per set).
In June, the DOT also cancelled the procurement of 100,000 wind- and waterproof winter jackets under a dynamic framework agreement with an expected value of UAH 299.02 million. The procurement was cancelled the day after announcement due to errors in the tender documentation. Specifically, the participant requirements stated that the following must be provided:
– a licence or extract from a Ministry of Internal Affairs order for conducting business activities in the sale of special individual protective equipment;
– a permit for the production of corresponding equipment.
However, the procurement did not envisage purchasing goods that fall under licensing according to these criteria, rendering the conditions incorrect.
June also saw the failure of tenders for the procurement of daily dry rations, which were to include both standard and specialised rations – halal and kosher. The procurements were conducted under simplified procedures, but none of the participants submitted bids. Specifically, it was not possible to purchase:
– 718,396 standard sets (menus 1-14) for an expected sum of UAH 198.53 million;
– 180,000 combined sets (menus 1-18) for UAH 61.05 million.
The latter comprised sets of nine rations: seven standard, one halal and one kosher each. Such rations are provided for in the new technical specification of the Ministry of Defence, approved in April 2025. This requires certificates of compliance issued by authorised religious organisations, as well as expert supervision during packaging. All tenders were cancelled due to lack of participants.
Additionally, a tender for 841,500 catering services worth UAH 98.13 million proved unsuccessful.
Challenges
A significant challenge in the agency’s operations has been procedural violations in procurements identified by the State Audit Service following monitoring activities.
Specifically, the State Audit Service found that in the procurement of food sets according to the Catalogue, the DOT unjustifiably restricted the number of lots that one participant could win. The agency justified this decision as necessary to prevent supply disruptions. Consequently, the DOT rejected the most economically advantageous offers from OKHTYRKA MEAT PRODUCTS LLC for two lots, which would have saved UAH 97.2 million. As a result, auditors mandated the termination of concluded contracts with other participants for these lots. The contracts have not yet been cancelled due to the appeal of the State Audit Service decision.
Meanwhile, in June the court rejected the DOT’s complaint regarding the State Audit Service’s demand to terminate another contract for the supply of 10,000 modular body armour sets. In February, the State Logistics Operator announced a simplified procurement, with MILIKON UA LLC – one of the distributors of Israeli manufacturer Masada Armour in Ukraine – determined as the winner.
During monitoring, the State Audit Service identified a systemic violation: the winner submitted a document confirming product compliance with Ministry of Defence technical specifications that had been issued to another distributor of the same manufacturer – FORTRESS DEFENCE LLC. At the same time, MILIKON UA provided no documents confirming legal relations between the two distributors. This created a situation where one Masada Armour representative effectively used another representative’s certification documents without proper legal justification. The State Audit Service qualified this as a procurement procedure violation and mandated the customer to terminate the contract. When the DOT lost the judicial appeal of this decision in the first instance, the agency filed an appellate complaint to the Sixth Appellate Administrative Court.
Throughout June, material equipment procurements worth UAH 476.28 million again failed to proceed. This followed two unsuccessful months, including 27 unrealised tenders in April and 21 in May, when participants refused to participate due to reduced expected costs compared to last year’s prices.
The most acute situation concerns winter uniforms. Despite all the DOT’s attempts to restore prices to last year’s levels and streamline the process through framework agreements, winter jacket procurements still could not be completed. Although 13 companies successfully passed the qualification selection for jackets, 100,000 jackets could not be purchased this time due to a technical error in the tender documentation, which included requirements unrelated to the procurement subject.
An attempt to procure another 20,000 jackets under simplified procedures also proved unsuccessful, despite pricing at last year’s level of UAH 2,950 per unit.
Additionally, 50,000 winter trousers could not be contracted even after increasing the expected cost to UAH 1,948.56 – 13% higher than offered in April, but still 11% lower than last year’s contracts.
Particular attention should be drawn to the unsuccessful tenders for daily dry rations procurement. 12 out of 22 lots worth UAH 259.59 million had to be cancelled, predominantly due to lack of bids. This may be related to the introduction of new specifications that also include halal and kosher daily sets. However, lots accounting for dry rations for Muslims and Jews were present in only 4 out of 12 unsuccessful procedures.
Recommendations Based on Analysis of Challenges in June 2025:
For the State Logistics Operator
1. Strengthen verification of tender documents from participants, particularly distributors of foreign manufacturers.
For the MoD Procurement Department:
2. Initiate a review of the justification for critical changes to tender requirements (specifically regarding restrictions preventing one supplier from winning more than one lot) introduced by the agency.
DOT procurement monitoring has been supported by the Office of the United Kingdom’s Special Defence Advisor and delivered by EDGE Foundation and StateWatch Think Tank.