Govt introduces defense procurement under framework agreement

KYIV. Nov 14 (Interfax-Ukraine) – The Cabinet of Ministers has changed the procedure for the implementation of defense procurement of goods, works and services under martial law, introducing a procedure for the procurement of a certain group of goods from suppliers with whom a framework agreement has been concluded, the Economy Ministry said on Saturday.

"The decision significantly expands the ability of Ukrainian manufacturers in the field of light industry to participate in defense procurement," First Deputy Prime Minister, Minister of Economy Yulia Svyrydenko said.

According to her, thanks to the innovations, defense procurement funds will remain in Ukraine, preserving jobs and domestic production.

The Ministry of Economy said that the government adopted the corresponding resolution on approval of the specifics of the implementation of defense procurement for the period of the legal regime of martial law at a meeting on November 11.

According to a separate procedure of framework agreements, the procurement of goods specified in the appendix of the resolution applies to clothing, footwear, sleeping bags for defense needs, etc. Such a mechanism is used for the purchase of these goods in the amount of UAH 200,000 and higher.

According to the procedure, in particular, the customer is obliged to place an announcement on the conclusion of a framework agreement in the public domain in the e-procurement system. Any manufacturer that meets the criteria can join the agreement during its validity (no more than a year) or a period set by the customer.

At the first stage of the procurement under the framework agreement, the customer determines the compliance of the supplier’s proposals with the requirements specified in the procurement announcement. At the second stage, a selection is made among the suppliers who have joined the agreement and a supply contract is concluded with the winner/s of the selection.

The essential terms of the contract cannot be changed until its full implementation, except in the event of a change in the price of the goods due to changes in taxes and fees, inflation, exchange rates, and the place of delivery of the goods.

According to the decision, government customers are allowed until December 31, 2022 to make procurement of goods specified in the annex to the decision, without applying the types (procedures) of procurement determined by the law on defense procurement and on public procurement, as well as without applying the procurement procedure under the framework agreement.