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ESR

2.6.2.1. Procurement procedures for defense-related goods, works, and services are competitive and involve the use of an electronic procurement system, with certain reservations; the closed procurement procedure is used as an exception, and the legally defined single-sourcing procedure (procurement from a single contractor) is regulated in detail at the level of bylaws, in particular regarding the formulation of the cost and profit margin

Problem solving:

2.6.2. Procurement of goods, work, and services for defense purposes is carried out under conditions of excessive secrecy and has a low level of competition, which contributes to abuse and unjustified spending of budget funds.

Deadlines for all measures within ESR

01.03.2023 - 31.12.2025

Implementation of SACP measures within ESR

Total number of measures – 3
1 2
In progress Not implemented

Implementation of SACP measures within the scope of the Problem by main main performers

Ministry of Defenсe of Ukraine

0%
3

Summarized general information on Measures

Name of the measure The main implementer Co-implementors Performance indicator Monitoring results (latest) Статус
1 2.6.2.1.1 Monitoring draft laws that propose amendments to the Law of Ukraine On Defense Procurement, which stipulates that defense procurement shall be carried out according to the following principles:
1) competitiveness;
2) effective spending of funds, effectiveness;
3) openness and transparency (except for information that constitutes a secret of the state, disclosure of which may harm national security);
4) preventing corruption, abuses and discrimination, and preparation of the relevant proposals.
Ministry of Defenсe of Ukraine Monitoring has been conducted and proposals have been issued.
There is progress in the implementation of the measure
In progress
2 2.6.2.1.2 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft act of the Cabinet of Ministers of Ukraine defining:
1) the admissibility and inadmissibility of reimbursement of expenditures (formulation of the prime cost) for defense products in accordance with the principles and procedures of NATO member states;
2) pricing and profit margin for defense products in accordance with the principles and procedures of NATO member states.
Ministry of Defenсe of Ukraine Міністерство економіки України, Акціонерне товариство "Українська оборонна промисловість" The act of the Cabinet of Ministers of Ukraine has been adopted.
The measure has not been implemented
Not implemented
3 2.6.2.1.3 Developing requirements for the cost accounting and monitoring system in a breakdown of contracts with manufacturers of defense products, which will be certified by an independent auditor in accordance with the principles and procedures of NATO member states Ministry of Defenсe of Ukraine Міністерство економіки України, Акціонерне товариство "Українська оборонна промисловість" The requirements for the cost accounting and monitoring system have been developed and certified.
The measure has not been implemented
Not implemented

Indicators of achievement of ESR

Total number of indicators – 2

Indicators fully achieved – 0

Partially achieved indicators – 0

Indicators with a score of 0% – 2

Summarized general information about Achievement Indicators

Indicators Weight (%)
1 The provisions of the Law of Ukraine On Defense Procurement have not been modified and remain in effect, in particular after termination or abolishment of martial law, which stipulate that defense procurement shall be carried out on the basis of the following principles:
a) competitiveness (15 percent);
b) effective spending of funds, effectiveness (10 percent);
c) openness and transparency (except for information that constitutes a secret of the state, disclosure of which may harm national security) (15 percent);
d) prevention of corruption, abuse, and discrimination (10 percent).
50%
2 Acts of the Cabinet of Ministers of Ukraine have entered into force, which define:
a) the admissibility and inadmissibility of reimbursement of expenditures (formulation of the prime cost) for defense products in accordance with the principles and procedures of NATO member states (25 percent);
b) pricing and profit margin for defense products in accordance with the principles and procedures of NATO member states (25 percent).
50%

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