Automatically translated version. May contain inaccuracies compared to the original.
The Ministry of Defense of Ukraine has simplified the mechanism for rear procurements, removing barriers to faster supply of such goods to the Armed Forces. This concerns, in particular, fuels and lubricants, food products, clothing and equipment, etc. The press service of the Cabinet of Ministers reports.
The corresponding changes were approved in the updated Instruction on rear procurement planning.
From now on, the procurement approach has become more flexible. In particular, for fuel, the mandatory re-authorization of the list when market prices change has been canceled, allowing purchases at the current price. At the same time, for other rear goods, a safeguard has been introduced, according to which the expected value in the tender cannot exceed the estimated value by more than 10%, which ensures prudent use of budget funds.
“This mechanism enables procurement without unnecessary delays, while preventing artificial price inflation or inefficient use of budget funds,” emphasized Mykhailo Banik, Deputy Minister of Defence of Ukraine.
According to Mykhailo Banik, the Ministry of Defense’s priority is that the military receives what is needed on time, of proper quality, and at the best price.
Why rear supply deliveries to the Armed Forces could be delayed
Previously, before each procurement, the list of rear goods and prices was approved in the Ministry of Defense. Over the approval period, market prices could change.
As a result, it was necessary to renegotiate the entire list again, which could cause delays in supplying the troops.
This process is regulated by the Instruction on procurement planning for certain defensive goods, works and services, other goods, works and services to ensure guaranteed security and defense needs during the military state regime in the rear supply direction.
To eliminate bureaucratic delays due to price fluctuations in the market, the Ministry of Defense has amended this Instruction.
How fuel procurement for the army will now be conducted
Now, in case of a price change, purchases of goods can be made at the new price, and the list does not need to be re-approved.
If the price of gasoline, diesel, or aviation kerosene has risen, fuel can be purchased immediately at the current market price.
Additionally, when purchasing fuel, current exchange-traded quotes and international indicators, such as Platts and ARGUS, will be taken into account. This will enable rapid response to price changes.
Changes in the procurement of other rear goods
Regarding other goods, for example, food products, clothing, oil, etc., a cap applies. The expected value in the tender cannot be more than 10% above the estimated cost on which the list was based.
This safeguard, on the one hand, will allow suppliers to participate in tenders, and on the other hand – will prevent artificial price inflation, inefficient use of budget funds, and will mitigate related risks.
The difference will be covered by savings on the procurement of other goods and services.
Earlier, the Ministry of Defense reported that military units of the Armed Forces of Ukraine had switched to digital accounting of fuel and lubricants in the Logistics Management system. This means that data on remaining fuel and movement are now available in a single system, and requests can be processed not by weeks but in a matter of hours or within a day.
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