DPA of Ministry of Defence introduces new procurement model for unmanned systems
"The Defence Procurement Agency" of the MoD has presented an updated model of drone procurement for the Armed Forces of Ukraine to drone manufacturers. It is designed to stimulate the development of the domestic market by creating a competitive environment, building clear rules and the ability to plan production.
This was reported by Censor.NET with reference to the Ministry of Defence of Ukraine.
In this way, the DPA plans to ensure a predictable and rapid supply of equipment for the Armed Forces, and to give manufacturers and suppliers a clearer understanding of the demand and current needs of the army.
Alternative procurement and supply tools
To this end, the Agency is developing alternative procurement and supply instruments. This will not only meet the needs of the military, including their role in the selection of equipment, but also open the market to a wider range of manufacturers.
"In 2025, the state budget allocates more than UAH 128 billion for the purchase of drones by the 'Defence Procurement Agency'. We are changing our approaches to make these funds work effectively: we create clear rules for the market, provide predictability for manufacturers and results for the army," said Hlib Kanevskyi, Director of the Procurement Policy Department of the Ministry of Defence of Ukraine.
The DPA will interact with the market through the following mechanisms:
- Direct contracts - for the purchase of unique or specialised drones.
Due to the strategic importance of procurement based on proven need, the Agency partially retains the existing approach. However, the focus will be on procurement of unique and specialised equipment.
- Framework agreements - competitive bidding based on tactical and technical characteristics.
Drones that have similar tactical and technical characteristics will be combined into a framework (at the first stage, these will be FPV drones). This will allow for competitive procurement involving a wide range of manufacturers.
- DOT-Chain Defence is a drone marketplace where the military will be able to choose the equipment they need on their own.
Military units will have more freedom and will not receive equipment solely on the basis of centrally made decisions. It will also reduce the delivery time for drones to a matter of weeks.
"During our conversations with manufacturers and the military, we identified key barriers - non-transparent procedures, difficult access to participation, and lack of dialogue. Therefore, we updated our approaches: we created clear rules, simplified the entry and made the process predictable. This opens up an opportunity for the market to scale, and for the state to quickly meet the needs of the Armed Forces," comments Arsen Zhumadilov, Director of the DPA.
What are the innovations?
Among the important innovations is the verification of suppliers for direct contracts. It helps to ensure that a company meets the basic requirements: it has no ties to Russia, Iran and Belarus and has sufficient production capacity and financial standing to fulfil contracts. After passing the verification, the supplier is included in the register, which reduces the time for future checks and allows the company to receive requests for commercial proposals from the DPA in a timely manner. This will make procurement faster, more efficient and more predictable for both parties.
All of these processes are described in detail in a step-by-step explainer, which is available on the Agency's website. It describes in detail the entire supplier's journey - from codification and verification to contract conclusion. Additionally, the DPA held an open online meeting with the market: more than 200 participants - producers and suppliers - had the opportunity to ask questions and provide their offers.
