UKROBORONPROM CUTS OFF FAKE SUPPLIERS – CHANGES IN THE PROCUREMENT PROCEDURE

SC "UkrOboronProm" (UOP) changed the procedure for inventory, works and services procurement to ensure transparency and cut off unscrupulous suppliers.

According to Director General of the State Concern "UkrOboronProm" Pavlo Bukin, the winning contractor is to provide guarantees as security for the fulfilment of their contractual obligations in the amount of 5% of the contract amount. The bid security can be provided in the form of suretyship, guarantee, pledge, bargain money, penalty, deposit, etc. The Ukrainian banking system can offer the mechanisms necessary.

In this way, the State Concern introduces a market mechanism for ensuring suppliers’ obligations fulfillment to the UOP enterprises-participants.

The decision was made to avoid situations when the winning company – offering the lowest price during the open tendering – had no opportunity to fulfill its obligations.

"I find it unacceptable for a company to win the tender, offering the lowest price, and then disappear. This impedes production processes, hampers modernization and repair of military equipment and weapons, generally causing damage to the national defense capability. Changing the procurement procedure will not affect the reliable partners of the State Concern, providing products in a timely manner and in full. At the same time, we will clear open tenders from unscrupulous suppliers," said Pavlo Bukin, Director General of the SC "UkrOboronProm".