Information current as of 13 November 2025
– In October, the State Logistics Operator (DOT) issued food procurement tenders totalling UAH 37.6 billion. These primarily concern the acquisition of food sets based on the Catalogue system, covering the entire 2026 fiscal year.
– A total of 78 contracts worth UAH 5.2 billion were finalised, with over 80% of this expenditure allocated to fuel to be supplied exclusively by UKRNAFTA JSC.
– The DOT has contracted for upgraded body armour sets totalling UAH 570 million (at a unit price of UAH 38,000). For this tender specifically, the agency required participants to provide proof of domestic manufacture. This occurred despite reports emerging shortly before the tender announcement that MILCON UA LLC – a distributor of Israeli Masada Armour – had been implicated in an investigation by the National Anti-Corruption Bureau of Ukraine (NABU). The DOT had previously revoked a contract with this firm in late summer due to substandard quality.
– 17 lots for the procurement of 136,927 standard-issue combat rations were unsuccessful due to a lack of bidders or non-compliant proposals. A key issue was the delivery deadline of the end of 2025, which allowed only six weeks for contract fulfilment. The DOT also unilaterally terminated a contract for the supply of 120,337 combat rations (valued at UAH 33.14 million) after PREMIUM SERVICES LLC breached their contractual obligations.. (PREMIUM SERVICES LLC had previously requested to withdraw from the agreement.)
– The DOT has commissioned consultancy services amounting to UAH 197 million to facilitate an upcoming reorganisation prompted by the merger of the DOT and the Defence Procurement Agency (DPA).
In October, the DOT announced a total of 36 tenders (comprising 103 lots), with a projected value of UAH 39.99 billion. The vast majority of this (UAH 37.58 billion) was allocated to food procurement, primarily via the Catalogue system until the end of 2026. Almost all procurement processes (99.9%) were conducted under the simplified procedure. Furthermore, in October, the DOT commissioned two services outside the Prozorro electronic system, both of which were related to preparations for the forthcoming reorganisation and merger with the DPA. These were an asset valuation (UAH 98,000) and a transfer balance sheet transformation (UAH 99,000).
In October, the agency concluded 78 contracts, totalling UAH 5.235 billion, resulting from tenders announced in October and in previous months. Of the contracted funds, over 81% (UAH 4.254 billion) were allocated by the DOT for the purchase of fuel. Expenditure on material equipment totalled UAH 817.838 million (15.6%), while expenditure on other goods and services totalled UAH 162.02 million (3.09%).
Petroleum, Oil and Lubricants
In October, the DOT concluded 41 contracts for the supply of petroleum, oil and lubricants (POL), totalling UAH 4.25 billion. Thanks to the competitive nature of the bidding process, the agency achieved savings of UAH 680.35 million. All of the contracts were awarded to UKRNAFTA JSC.
Arctic diesel accounted for the largest share of the total contract value, at 87,700 tonnes, worth UAH 3.36 billion (an average price of UAH 38,037 per tonne, compared to an expected price of UAH 44,910). OKKO-EXPRESS LLC, which won its first tender in August this year, competed against UKRNAFTA JSC throughout the bidding process.
It is noteworthy that the agency purchased arctic diesel at higher prices during the first half of 2025, with prices ranging from UAH 40,520 to UAH 44,033 per tonne. The price decrease in October followed OPEC+’s decision to increase oil production, as well as forecasts of a fuel surplus on the global market in Q4 2025.
Additionally, the DOT procured 12,800 tonnes of jet engine fuel at an average price of UAH 45,084.44 per tonne, totalling UAH 572 million. Two companies participated in several bidding rounds: UKRNAFTA JSC and DZD-TRANS LLC. Although the latter submitted a lower bid than its competitor, its documentation failed to meet the tender requirements. Consequently, UKRNAFTA JSC was declared the winner. DZD-TRANS LLC, based in Dnipro, has been attempting to participate in fuel tenders unsuccessfully for two consecutive months.
In October, two contracts were signed with UKRNAFTA JSC for the supply of 5,000 tonnes of A-95 petrol at an average price of UAH 55,205 per tonne, and a contract was secured for the supply of 800 tonnes of A-80 petrol at an average price of UAH 51,340 per tonne.
Material Equipment
The DOT concluded 13 contracts totalling UAH 817.83 million for the procurement of material equipment. Total savings amounted to UAH 6.01 million.
In October, the DOT placed an order for body armour with an extended 1–11 configuration, including protection for the forearms, shins and tailbone, at a total cost of UAH 570 million. No savings were achieved. The MoD explained that the new model had been introduced due to the evolving nature of combat injuries, with over 90% currently being caused by fragmentation.
The new components can stop pistol rounds and fragments weighing up to 1.1 g travelling at speeds of up to 600 m/s. They will also partially replace knee and elbow protection. All elements are manufactured using Ukrainian ceramic-composite materials in MM-14 camouflage.
Following references to the Israeli manufacturer’s distributor, MILCON UA LLC, in a NABU investigation, the DOT terminated its contract. One of the key requirements for participants in the October procurement was a guarantee of domestic production.
The first contract for body armour with an extended configuration was signed with TEMP-3000 LLC for 10,000 units, totalling UAH 380 million (UAH 38,000 per unit). Although UKRTAK.UA LLC participated in the bidding process, they failed to provide a certificate of conformity despite submitting a lower bid.
The second contract was awarded to KHARKIV PLANT OF PERSONAL PROTECTIVE EQUIPMENT LLC for 5,000 units at a price of UAH 38,000 each. Both TEMP-3000 LLC and UKRTAK.UA LLC were competitors, offering lower costs but they failed to submit complete documentation packages.
StateWatch analysts recently noted that the average price of body armour in the basic 1–5 configuration was UAH 21,954 in 2025, compared to UAH 29,561 for the extended 1–8 version. However, the 1–11 configuration, which includes protection for the forearms, shins and coccyx, has now been contracted at UAH 38,000.
Separately, at the end of October, the DOT signed a contract with UKRTAK.UA LLC for the supply of 3,000 positive buoyancy elements for use with body armour. The contract was worth UAH 44.94 million (UAH 14,980 per unit). As winter approached and Armed Forces of Ukraine (AFU) personnel transitioned to winter uniforms, the agency continued to procure summer uniforms featuring the new MM-25 camouflage pattern in response to an urgent request from the Logistics Forces Command. In October, contracts were exclusively concluded for summer clothing, totalling over UAH 105.39 million. Specifically for the following items:
– Summer special suits: 10,000 units with TOP-TEKS LLC (UAH 4,186.86 per unit); 5,000 units with NIKA-TEKST PLUS LLC (UAH 4,187.94 per unit); and 5,000 units with ANVA LLC (UAH 4,186.98 per unit).
– Summer suit trousers: 10,000 pairs were contracted with TUSMO LLC at an average price of UAH 1,082.88 per unit and with OLTEKS LLC at an average price of UAH 1,081.68 per unit.
The DOT also signed two contracts for the supply of 5,000 winter special suits: one with ASTRA LUX PRJSC at an average price of UAH 4,314 per unit and one with MIK LLC at an average price of UAH 4,289.7 per unit.
Furthermore, the agency purchased 300,000 chemical hand warmers. Two contracts were signed with PRIVATE LOGISTICS OPERATOR LLC at an average price of UAH 21.78. In total, 11 companies were awarded contracts for material equipment in October. The largest sum, totalling UAH 380 million, was received by TEMP-3000 LLC.
Food procurement
However, the agency did announce large-scale food procurement for the AFU for 2026.
It is planned to supply 214.37 million food kits according to the Catalogue for personnel and 21,650 kits for feeding animals. The total expected cost is approximately UAH 37 billion (UAH 171.48 per kit).
This is the first time the DOT is purchasing food supplies for an entire year in advance. According to the MoD, this approach is intended to ensure continuity of supply, stable conditions for suppliers and the ability to plan production in advance. Previously, procurement was undertaken separately for each six-month period.
However, the expected cost has increased: in the first half of 2024, it was 139.38–154.98 UAH per set; in the first half of 2025, it was 154.98 UAH; and for deliveries in 2026, it increased to 171.48 UAH. In addition, the agency announced four tenders (40 lots) for the procurement of 1,945,195 combat ration packs (Menus No. 1–14), totalling UAH 816.68 million.
Following the November bidding process, three bidders were identified to supply 627,865 ration packs, valued at UAH 260.11 million. Specifically:
– YUSMAK LLC will supply 334,488 packs at an average price of UAH 394.71,
– PARTNER UKRAINE LLC will supply 163,072 packs at UAH 431.84.
– KHODORIVSKYI MEAT PROCESSING PLANT LLC has been awarded a contract to supply 130,305 ration packs at a cost of UAH 423.06 each.
YUSMAK LLC was established around a year ago and has now participated in DOT tenders for the first time. The company has been referenced in a criminal investigation by the Bureau of Economic Security into the intentional evasion of over UAH 100 million in taxes by officials from several other enterprises. The investigation relates to the supply of food to military units and other institutions between 2022 and 2023. During a search operation, however, investigators seized numerous company seals, including those of YUSMAK LLC. This case also involves the combat ration manufacturer SM-CASCADE, which is contracted to supply products to the DOT through YUSMAK LLC.
Challenges in October procurements
Unsuccessful tenders
In October, the DOT continued to experience problems with unsuccessful tenders. Overall, 9 tenders (36 lots) valued at UAH 401.79 million failed to materialise throughout the month. Specifically, of the 40 lots announced for the procurement of standard combat ration packs (Menus 1–14), 19 procedures totalling UAH 216.34 million did not proceed. Tenders primarily failed due to a lack of participants or non-compliance of proposals. Of these lots, 17 stipulated the delivery of ration packs by the end of 2025, meaning that any successful tenderers would have had to complete the deliveries within a month and a half of signing the contract. The remaining lots provide for supply from late 2025 throughout the first half of 2026.
The anticipated cost of a standard daily ration pack increased from UAH 276.36 at the start of June to UAH 339 by the end of the month (+22%). Subsequent procurements saw the price rise again, with packs for delivery by the end of 2025 costing UAH 432.51 and packs for delivery in 2026 costing 3.7% less at UAH 416.86.
FABRYKA SMAKU LLC submitted a proposal among the tender participants, despite three previous contracts totalling UAH 150.34 million having been terminated due to non-delivery or delayed delivery. However, this proposal was rejected due to non-compliance with the tender requirements. Notably, the company failed to provide a letter of guarantee for anti-corruption verification.
FABRYKA SMAKU LLC operated as an intermediary, purchasing components and assembling ration packs despite not having its own production facilities. Additionally, discrepancies were recorded between the actual and declared compositions of deliveries, as well as violations of packaging requirements – certain items were under-delivered, while others were delivered in excessive quantities. Following this, the DOT imposed sanctions on the company for a period of one year, restricting its participation in procurement.
Separately, in October, the agency terminated a contract with PREMIUM SERVICES LLC, a ration pack supplier. The contract, which had been concluded in June of that year, was for the supply of 120,337 standard sets, valued at UAH 33.14 million.
The company’s failure to deliver goods within the stipulated timeframe was the formal basis for termination. However, as early as the beginning of September, the enterprise had submitted a proposal to the agency for the contract to be terminated by mutual agreement. At the same time, the DOT insisted on continuing the cooperation on the condition that the deficiencies were rectified. Ultimately, however, the supplier failed to deliver, resulting in the termination of the contract.
Among other things, the tender process for supplying 4,500 modular body armour sets in configurations 1–5 was unsuccessful. One of the key requirements for participants in this procurement process was a guarantee of domestic manufacture. UKRTAK.UA LLC participated in the tender but did not provide a bank guarantee. During the procedure, a potential participant approached the contracting authority to request an extension to the deadline for submitting proposals, as only eight working days had been allocated for preparing documents. This indicates interest from new market participants. Ultimately, however, the agency did not amend the procurement conditions and the tender did not proceed.
Summer Multicam MM-25
The agency continues to procure summer uniform items featuring the MM-25 pattern. At the end of July, the DOT began procuring certain uniform items with the new MM-25 pattern in response to urgent requirements, despite its approval on 11 June. Due to the tight deadlines and the urgent nature of the requirement, most companies were unable to prepare to participate in the tenders, resulting in only a few suppliers taking part. This process is discussed in detail in StateWatch’s July monitoring report.
In October, the DOT concluded new contracts for summer uniforms in the MM-25 pattern totalling over UAH 105.39 million, with deliveries planned for early December.
Recommendations based on analysis of challenges in September 2025
For the DOT:
1) Conduct a preliminary assessment of the production capacities of potential combat ration suppliers to determine their ability to fulfil the terms of the contract. Ensure advance communication with the market regarding planned tenders and facilitate the development of a competitive supplier environment.
2) Establish broader timeframes for submission of proposals, particularly in tenders where a certificate of conformity must be submitted, to ensure participants have sufficient time for document preparation, testing procedures and price proposal calculation.
For the LFU:
1) Plan the procurement of material equipment with consideration of seasonal requirements and suppliers’ production cycles to avoid the delivery of material assets out of season.
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.