The Cabinet of Ministers of Ukraine has changed the procedure for defense procurement of goods, works, and services under martial law. The key difference from the current procedure is the introduction of a procurement procedure for a certain group of goods from suppliers that have concluded a framework agreement.

The relevant resolution "On approval of the peculiarities of defense procurement for the period of the legal regime of martial law" was adopted by the Government at a meeting on November 11, 2022.

"The decision substantially expands the opportunities for Ukrainian manufacturers in the field of light industry to participate in defense procurement. Accordingly, we achieve several important goals at a time. First, defense procurement funds will remain in Ukraine. Second, we save jobs, allow domestic producers to develop and expand production. Finally, the decision will have a positive effect on the economy as a whole," said First Deputy Prime Minister - Minister of Economy of Ukraine Yuliia Svyrydenko.

The resolution adopted by the Government regulates defense procurement for state contractors in the field of defense, state customer services, etc.

According to the general procedure, state customers procure goods, works, and services without applying the types (procedures) of procurement defined by the Law of Ukraine "On Defence Procurement" and "On Public Procurement".

A separate procedure of "framework agreements" is used for procurement of goods specified in the Annex of the Resolution: clothing, footwear, sleeping bags for defense purposes, etc. This mechanism is applied to the procurement of the above goods in the amount of UAH 200 thousand and above. In particular, according to the procedure:

The customer is obliged to place an announcement on the conclusion of a framework agreement in the electronic procurement system.

Any manufacturer that meets the criteria may join the agreement during its validity (not more than a year), or the term set by the customer.

At the first stage of procurement under framework agreements, the customer determines the compliance of the supplier's proposals with the requirements specified in the procurement announcement.

At the second stage, a selection is made among the suppliers that have joined the agreement and a supply contract is concluded with the winner(s) of the selection.

The substantial terms of the contract may not be changed until its full execution, except in case of changes in the price of goods due to changes in taxes and fees, consumer price index, currency exchange rate, change in the place of delivery of goods, etc.

In accordance with the adopted resolution, the resolution "Certain issues of defense procurement of goods, works and services under martial law" (No. 169 of February 28, 2022) and a number of other decisions of the Government become invalid.

Under the decision, state customers are allowed until December 31, 2022, to procure the goods specified in the annex to the resolution without applying the types (procedures) of procurement defined by the Law of Ukraine "On Defense Procurement" and "On Public Procurement", as well as without applying the procurement procedure under framework agreements.