“Reduce the delivery time of drones to a few days”: how the DOT-Chain Defence marketplace will work

In May, the Ukrainian State Operator For Non-Lethal Acquisition (DOT) plans to launch the DOT-Chain Defence platform — a marketplace where military units will be able to independently select and order the necessary equipment contracted by the state. Defender spoke with Volodymyr Chugai, Head of Product Management for the DOT project, about what can be ordered through the platform, the main challenges in building it, and how the military and manufacturers will use it.

What is DOT-Chain Defence

DOT-Chain is an IT system for managing the logistics needs of the Armed Forces of Ukraine, developed by the DOT and launched in September 2024. It has helped shorten the supply cycle, partially automate logistics, reduce paperwork, and simplify the monitoring of documents and financial flows.

The DOT-Chain Defence platform is the next step in the evolution of the system, says Volodymyr Chugai. It functions as a marketplace where military units can independently choose and order equipment already contracted by the state. The platform was introduced to manufacturers in April and is now being finalised for their use.

The first iteration of the marketplace is scheduled for launch in May. “Currently, the project focuses on drone supply, but in future iterations we will add other categories — ground robotic complexes, electronic warfare systems, components, and more,” Chugai explains. The goal is to reduce the drone supply cycle to several weeks, and eventually to just a few days.

DOT-Chain Defence is expected to boost the combat readiness of brigades: delivery speed will increase, soldiers will have visibility on fulfilment timelines, and manufacturers will be able to plan production volumes. In the future, the system will support pre-orders — when production begins only after an order is placed.

Main challenges in developing the marketplace

According to Chugai, the main challenge for the development team was balancing functionality with usability. Forming an order should not require special training or extra bureaucracy — and at the same time, it must be secure for both the requesting units and the suppliers.

“Under the hood, the system reflects all procedural and regulatory requirements of the Defence Procurement Agency. These processes must be followed, but the interface must remain product-oriented and user-friendly. It should allow for delivery schedules, production capacities, and budget constraints to be taken into account,” says Chugai.

Another major challenge is information security: ensuring authorised access only, assigning different access rights to different system zones, resetting user authorisation, and protecting against data copying or unauthorised downloads.

“We passed ISO certification, implemented multiple security layers in line with required protocols, engaged external experts, and incorporated their recommendations. The system also took part in a Bug Bash Bounty event with ethical hackers, which gave us an additional evaluation of its cybersecurity status,” Chugai says.

How the military will use the system

The DOT-Chain Defence module will serve as a shared space for units and suppliers, enabling effective monitoring and real-time support from the Agency and coordination bodies. Initially, the marketplace will be used to collect annual equipment requests — replacing spreadsheet-based submissions with automatic entries in a secure database.

Based on the aggregated data, the responsible authorities will submit procurement requests. The next steps will follow the legal procurement procedure: market analysis, tenders or calls for proposals, selection of offers, contract signing with suppliers.

At the unit level, authorised personnel will place orders via personal accounts, selecting from items listed in the catalogue. The system will automatically verify the correctness of the form, data accuracy, compliance with standards, etc., and forward documents to relevant ministries. Once the application is approved, an invoice is generated and delivery proceeds. Receipt is confirmed via goods dispatch notes and acceptance certificates. Payments are based on these documents.

For users, the system will function like a typical online marketplace: items are added to a cart, quantities specified, and orders confirmed with an electronic signature. Applications are then processed by the Defence Procurement Agency, which checks whether the unit has sufficient funds. If clarification is needed, the request is returned for revision.

In the first version, only in-stock items can be ordered. In future iterations, functionality will expand to include pre-orders, product reviews, and detailed technical specifications.

How manufacturers will use the system

The manufacturer interface is in its final development phase. In the first release, only codified drones with state contracts will be available. These are selected based on annual orders and priorities set by the General Staff of the Armed Forces of Ukraine.

“We have built in the technical ability to display both codified and non-codified items in the marketplace. This provides flexibility to test hypotheses and support the rapid scaling of quality solutions emerging from the R&D ecosystem,” Chugai notes.

The initial catalogue will include mostly small strike drones and selected components. Future updates will introduce long-range drones and pre-orders, helping manufacturers to plan production. To be included, manufacturers must have codified products, meet qualification requirements, and submit a commercial offer with a price estimate. Detailed qualification criteria will be announced closer to launch.

First come, first served

DOT-Chain Defence will also create a competitive environment for both military units and suppliers. According to Chugai, the system will accumulate a kind of internal currency — “dotcoins” — to generate a conditional rating of units based on effectiveness measured in terms of damage inflicted per hryvnia spent.

“At this stage, the principle is that the first unit to submit an order gets the drones first. But that model needs to evolve. The key variable is the available budget, but we can’t allow a single brigade to order 10,000 drones while others are left waiting. We’re working on a priority algorithm: frontline brigades will be served first, followed by those in the rear,” he explains.

Each unit’s annual budget will have two parts: a guaranteed amount — liquid funds for immediate purchases, including for units in formation or recovery; and a performance-based amount, allocated based on operational success reports and verified enemy losses.

Currently, there is no additional incentive mechanism for manufacturers, but Chugai expects that a reputation-based rating will naturally emerge over time. This will be informed by combat results, military feedback, delivery performance, and product quality.

“Annual contracts can sometimes make manufacturers complacent, since they have a guaranteed budget. From now on, failure to meet delivery timelines or other issues will negatively affect a supplier’s rating and may lead to penalties under contract terms,” Chugai warns.

The module is scheduled to launch in May, followed by approximately monthly updates. This cycle will allow time to gather feedback and adjust to user needs. According to Chugai, it will take 6–9 months to fully establish core processes and validate the procurement and supply model.