"The procurement approach is now becoming more flexible. In particular, the mandatory reapproval of the list when market fuel prices change has been abolished, allowing fuel to be purchased at the current market price. At the same time, a safeguard has been introduced for other logistics supplies: the expected tender price may not exceed the indicative price by more than 10%, ensuring the rational use of budget funds," the ministry said.
The relevant changes have been approved as part of an updated instruction on planning logistics procurements.
"This mechanism makes it possible to conduct procurements without unnecessary delays while preventing artificially inflated prices and the inefficient use of budget funds," Deputy Defense Minister Mstyslav Banik said.
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According to him, the ministry's priority is to ensure that military personnel receive what they need on time, with the required quality and at the best possible price.
Previously, before each procurement, the list of logistics supplies and their prices had to be approved by the Ministry of Defense. By the time the approval process was completed, market prices could have changed.
As a result, the entire list sometimes had to be reapproved, potentially delaying supplies to the military.
"The process is governed by the instruction on planning the procurement of certain goods, works and services for defense purposes, as well as other goods, works and services to guarantee security and defense needs during martial law in the area of logistics support. To eliminate bureaucratic delays caused by market price fluctuations, the Ministry of Defense has amended the instruction," the ministry said.
Under the new rules, if prices change, goods can be purchased at the new price without having to reapprove the list.
If the price of gasoline, diesel fuel or aviation kerosene increases, the fuel can be purchased immediately at the current market price.
In addition, current exchange quotations and international benchmarks, such as Platts and Argus, will be taken into account when purchasing fuel. This will make it possible to respond more quickly to price changes.
For other goods, such as food, clothing and oils, the Ministry of Defense said a limit will apply. The expected tender price may not exceed by more than 10% the indicative price used to compile the procurement list.
The safeguard will allow suppliers to participate in tenders while preventing artificially inflated prices, inefficient spending of budget funds and the associated risks.
"The difference will be covered through savings on the procurement of other goods and services," the ministry added.
Photo: Ukrainian Defense Ministry