Between February 12 and 16, the State Logistic Operator (DOT), responsible for the procurement of non-lethal goods for the Armed Forces of Ukraine, announced seven procurements (20 lots) for a total expected value of at least UAH 357.6 M ($9.4 M). The largest tender was initiated for the procurement of 417 thousand utility pouches for the military, with an expected value of UAH 201.9 M ($5.2 M). During this period, DOT signed contracts totaling UAH 28 thousand ($733) under the open procurement procedure. In addition, the operator concluded a contract for the procurement of motor oil for UAH 175 thousand ($4587) per ton under the “defence procurement” procedure, which does not require disclosure of the total contract price, quantity of goods, or name of the winner.
The largest announced DOT procurements (according to the expected value)
- 417 thousand utility pouches for UAH 201.9 M ($5.2 M), UAH 484 ($13) per item.
- 803 thousand field caps for UAH 155.3 M ($4M), UAH 193 (5$) per item.
Both procurements were announced under a simplified procedure, i.e., with the possibility of attracting at least one tenderer. The procurement results, the winners, and the actual contract prices will be known upon completion of the procedures. Other DOT announcements on the Prozorro website list the procurement of items necessary for the agency functioning, including office equipment, kitchen utensils, and printers.
It is worth noting that, due to numerous complaints from procurement participants, DOT introduced multi-lot procurement, (when a high value or high volume procurement is divided into several components – lots). This makes it possible to increase competition during the auction, lower the price, and guarantee contract execution.
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. The agency’s total annual budget is nearly UAH 95 billion. Of this amount, the agency is supposed to receive a commission of 0.4% of the executed contracts (this should not exceed UAH 250 million per year). Procurement is carried out through Prozorro procurement e-platform.
The monitoring information is up-to-date as of February 21, 2024.
This monitoring has been supported by the British Embassy’s Office of the Special Defence Advisor, and delivered by EDGE Foundation and StateWatch.