Zelensky signs bill to regulate pricing in defense procurement
Kyiv • UNN
President Zelenskiy signs a law allowing suppliers to the Armed Forces of Ukraine to include profit in the cost of products and services during martial law.
President of Ukraine Volodymyr Zelenskyy has signed draft law No. 10454 on improving the legal regulation of pricing in defense procurement during martial law. This will allow the return of profit to the cost of products and services for suppliers of the Armed Forces. UNN reports this with a link to the document card.
Details
This is a draft law on amendments to the Law of Ukraine "On Defense Procurement" to improve the legal regulation of pricing in defense procurement during the legal regime of martial law.
What the Law No. 10454 provides for
If the procurement of defense goods, works and services during the legal regime of martial law is carried out under a non-competitive procurement procedure or without conducting the types of procurement specified by law, the level of profit in the price of the state contract for defense procurement may not exceed the level of profit (maximum profit level) established by the Cabinet of Ministers of Ukraine.
In case the Cabinet of Ministers does not establish the level of profit (profit ceiling) specified in this part, the price of goods, works and services shall be determined by the state contract concluded under the non-competitive procurement procedure or without conducting the types of procurement specified by the legislation, in accordance with the contractor's proposal, taking into account the profit of such contractor.
According to MP Yaroslav Zheleznyak, this draft law solves the problem between the State Audit Service and military procurement suppliers regarding the level of profit.
Recall
In October 2023, the State Audit Service announced that it would support the return of profit to the price, and the relevant proposals were sent to the Ministry of Defense. Among other proposals, the agency proposed to use the aforementioned profit for the development of the military-industrial complex.
On February 22, 2024, the Verkhovna Rada adopted a draft law on improving the legal regulation of pricing in defense procurement during martial law.