MoD Defence Procurement Agency saved nearly UAH 511 million through a new FPV drone procurement procedure

The Defence Procurement Agency (DPA) of the Ministry of Defence of Ukraine saved nearly UAH 511 million in FPV drone procurement thanks to framework agreements based on technical specifications – that is, requirements for the drones’ functionality and capabilities.

It should be emphasized that the newly introduced procedure has made drone procurement even more efficient. The introduction of this new approach allowed for competitive bidding among a wide range of manufacturers.  Consequently, eight companies submitted bids for the right to supply the drones.

“Over UAH 500 million saved through the newly implemented procedure, without compromising equipment quality. This is a clear example of how efficient procurement directly bolsters Ukraine’s defense capability,” emphasized Colonel Oleksandr Osadchyi, Director of the Procurement Department of the Ministry of Defence.

The total expected value of the procurement was UAH 2.058 billion. Following the bidding, contracts were signed for UAH 1.547 billion. The highest savings in an individual lot exceeded UAH 70 million, with an average of roughly 25%

“Thanks to the new procedure, the DPA saved nearly 25% of the expected procurement value. This means we can procure more drones and provide the military with a substantially greater volume of equipment using the same funds,” said Arsen Zhumadilov, Director of the Defence Procurement Agency.

In a number of lots, the savings proved especially significant:

• Expected value: UAH 202.3 million → winning bid: UAH 141.2 million, resulting in a saving of UAH 61.1 million.
• Expected value: UAH 177.8 million → winning bid: UAH 106 million, resulting in a saving of UAH 71.8 million.
• Expected value: UAH 177.8 million → winning bid: UAH 120.1 million, resulting in a saving of UAH 57.7 million.

Some manufacturers have already completed the first deliveries of drones to the Armed Forces of Ukraine.

The procurement of FPV drones was carried out in a closed module of Prozorro, which guarantees the confidentiality of manufacturer information. Proposals could be submitted either directly or through an authorized representative.