DPA to diversify drone and ammunition orders among multiple suppliers

The Defence Procurement Agency will apply a diversification mechanism to the procurement of UAVs, ground robotic systems and ammunition. The Ministry of Defence of Ukraine has already revised procurement procedures for the needs of the Armed Forces, the agency said.

During procurement, the Agency will not select a single supplier but will distribute orders among multiple participants if there are two or more acceptable bids.

Volumes will be allocated using a special formula. Bids priced 30% or more above the lowest offer will not be considered. If several bidders offer products from the same manufacturer, the lowest-priced offer will be selected. Where customer-supplied materials are used, their cost will be included in the calculation.

If a supplier fails to fulfil its allocated volume, the remainder will be redistributed among other suppliers. Allocation decisions will be approved by the Agency’s collegiate body. Draft state contracts will then be submitted to the Ministry of Defence for approval.

The approach is expected to ensure more reliable supply of critical equipment and a better balance between price and supplier capability. It is also intended to reduce the impact of force majeure, including strikes on production facilities, as well as the risks of bad-faith conduct by manufacturers.

Earlier, Defender Media reported on new Ministry of Defence approaches to drone procurement, under which demand for drones will be formulated based on battlefield data.