How To Quickly Reboot Defence Procurements? To Pass the Bill No. 2398!

On November 21, at the ArmyInform news agency, the experts discussed the advantages and disadvantages of the Defence Procurement Bill No. 2398.

Procurement Coordinator and Adviser to the Minister of Defence, Artur Pereverziev took part in the discussion as a representative of the Reforms Project Office.

“An important task that we should fulfil now for the Armed Forces is to decommunize defence procurement legislation. The legislation, which has a twentieth anniversary this year,” he said during the discussion. “The current legislation originates in Marxism-Leninism and the Soviet classification of Stalin's time on the means of production, means of consumption and means of destruction (weapons). This system rejects market logic in favour of central planning for both orders and production, while the market is competition and transparency. Which, in turn, is more efficient than spending taxpayers’ money.”

The round table participants raised a wide range of issues related to the procurement of goods, equipment and services for the defence needs of Ukraine. These are tools to increase competition between suppliers, as well as pricing and quality control of defence products.

According to Artur Pereverziev, the main objective of the Bill No. 2398 is to quickly update the legislation and reveal purchases of conventional weapons, goods, and services for the Ukrainian army. The legislative innovation will finally eliminate the remnants of the Soviet approach to defence procurement and change the rules for protecting state secrets. 

“What is the secret in trailers for living? Nothing at all,” the Minister of Defence of Ukraine A. Zahorodniuk introduced an example in a recent interview for “Livyi Bereh” (Left Bank) portal on November 21, 2019. “But if this is not revealed, corruption risks multiply: you take one company and prepare technical specifications (TS) on the basis of its products, and then you organize a tender on the basis of those TS. Even if it is a public tender, others will not be able to win. Only the company “on whose basis” the TS were written”.

Without the adoption of the Bill No. 2398, Ukraine will not comply with the requirements of the “Law on National Security”, which considers the making defence budget of Ukraine transparent and providing equal competition between Ukrainian and foreign manufacturers compulsory.

On November 7, 2019, the Bill was submitted to the Verkhovna Rada of Ukraine. Currently, the MPs of the National Security and Defence Council of VRU are working on its improvement.

P.S. We bring to your notice a fresh column by the Minister of Defence of Ukraine regarding defence procurement reform on the NV portal.