UKROBRONPROM SAVES OVER 32 MLN USD (900 MLN UAH) ON PROCUREMENT (INFOGRAPHICS)

Since January 1, 2020, Ukroboronprom saved over 32 mln USD (900 mln UAH) due to the voluntary transition of Ukroboronprom’s enterprises to procurement via Prozorro system.

During this time, the Concern’s companies launched and ran over 27,000 tenders for over 392 million dollars (11 bln UAH). The main object of purchase expenditures of Ukroboronprom falls for various alloys, spare parts for military equipment, fasteners and electrical equipment.

Due to open and transparent procurement procedures, over 6,000 unique suppliers participated in tenders: an average of 2.2 suppliers competed in tenders.

Before 2020, the Concern’s purchases took place on a closed site – only registered suppliers could participate in tenders. However, taking into account that the vast majority of procurement does not make a military secret, and the Law of Ukraine On Public Procurement does not apply to Ukroboronprom, the State Concern compelled all its companies to voluntarily switch to the Prozorro system from January 1, 2020.

“In spite of opposition of some enterprises, Prozorro system allows them to save up to 50% of their budgets for the desired products or services. Due to competition in the auction we get the best prices. For example, we saved 84% of the allocated budget for the purchase of sanitary and hygienic treatment services for the Concern’s premises in connection with COVID-19: during the auction the price dropped from 11,800 USD (331,000 UAH) to 1,800 USD (51,000 UAH),” Roman Avramov, acting Procurement Director of Ukroboronprom said.

"Ukraine’s state defense industry is also waiting for a fully valid launch of the Law of Ukraine On Defense Procurement, which should radically change the system of procurement of military equipment, goods, services and weapons for the law enforcement agencies of Ukraine. After all, transparent defense procurement is Ukraine’s course to NATO, stated in the Constitution. We hope that all the necessary regulations will be adopted in the near future, and defense procurement will fall under democratic civilian control," Yuriy Husyev, General Director of Ukroboronprom, added.