Ukraine changed the rules for drone and EW procurement contracts: what you need to know

The Cabinet of Ministers has allowed changing the terms of state contracts for the procurement of UAVs and EW systems after their conclusion. In particular, an increase of up to 20% of the contract price is permitted if, during its execution, at the request of the state customer, technical, technological, or engineering solutions were changed that allow for improved results. This was announced by the government representative in parliament, Taras Melnychuk, writes UNN.

Changes have been made to the procedure for purchasing domestically produced unmanned systems, tactical-level electronic warfare equipment, and their components.

It is envisaged that it will be allowed to change the essential terms of state contracts (agreements) for the manufacture and supply of drones or tactical-level EW systems (their components) already after their conclusion.

A one-time increase in the contract price is allowed if, during its execution, at the request of the state customer, technical, technological, or engineering solutions were changed that allow for improved results.

In such a case, the price increase is allowed by no more than 20% of the initial price of the relevant state contract (agreement). The amount of profit of the contractor of the state contract (agreement) as part of the price in the calculation must comply with the requirements - no more than 25 percent of the production cost of goods, works, and services.

Recall

The Cabinet of Ministers approved the proposal of the Ministry of Defense regarding the implementation, during the period of martial law, but for no longer than two years, of an experimental project to strengthen the air defense of Ukraine by involving air defense groups.