The procurement agency of the Ministry of Defense “State Logistics Operator” concluded 719 contracts for a total of UAH 74.6 billion in the first year of operation and saved UAH 16.3 billion.
As reported by Ukrinform, this was reported by the Ministry of Defense of Ukraine.
The agency began its work on December 1, 2023, and already in January 2024 began providing the Ukrainian Armed Forces with clothing, ammunition, fuel and lubricants, and from April 1 – with food.
In the absence of information on the market, suppliers, and supply volumes in previous years, DOT specialists built supply processes from scratch, opened the market to new suppliers, and made procurement as transparent as possible.
The use of modern approaches to the procurement of DOT allowed the state budget to save more than UAH 16.3 billion. These funds were directed to additional needs of the armed forces of Ukraine.
According to the Director of the Defense Ministry's Procurement Policy Department Gleb Kanevsky, the greatest savings were achieved in fuel purchases – almost UAH 6.6 billion, as well as in food supplies – approximately UAH 6 billion. This is the result of systematic work to optimize costs and improve approaches to procurement.
“Transparency, digitalization and competition between suppliers are the principles that we are implementing to improve efficiency. We will continue to develop these changes, because our goal is a reliable and predictable supply system for each serviceman,” Kanevsky emphasized.
Over the year, DOT contracted UAH 74.6 billion with a proven annual need of UAH 95.6 billion.
The average supplier SLA (service level indicator) is 78%.
The introduction of the DOT-Chain IT system has accelerated the delivery cycle by 4 times and eliminated more than 30,000 paper documents per week
For the first time in the history of providing the Armed Forces of Ukraine, proven needs for the next (2025) year began to be contracted in the previous year, from November 2024.
The DOT contracted for food for UAH 23.6 billion, delivered 95.1%, and organized the delivery of 264 million liters of water, which is about 85 Olympic swimming pools.
DOT contracted for the supply of clothing and equipment for UAH 22.8 billion and delivered 84%.
The 128,860 bulletproof vests delivered are enough to fully supply the armies of Hungary, the Netherlands, Bulgaria, Belgium and Sweden combined.
Fuel and lubricants were contracted for UAH 28.2 billion, 90.8% were delivered.
11,000 wagons of fuel and lubricants have been delivered. If they were to form a single column of tanks, their distance would be equal to the distance from Bratislava to Budapest.
Corruption prevention mechanisms are built into all processes of the procurement agency of the Ministry of Defense, including the process of interaction of employees in the team and the process of interaction of the team with external stakeholders. The agency operates according to the approved anti-corruption program for 2023-2025. In 2024, a three-level control system was introduced.
This allows for a clear distinction to be made between three key functions: governance, risk and control, and internal audit.
As reported by Ukrinform, 1,600 potential suppliers of the Armed Forces of Ukraine have been checked for compliance with anti-corruption and sanctions requirements of the procurement agency of the Ministry of Defense “State Logistics Operator”.