“For 5 months of work as the head of the Defense Procurement Agency, in addition to current work on the implementation of proven budget programs, we with the team identified and rebuilt the key components in the activities of the agency that negatively influenced its effective and sustainable assurance of the Armed Forces.”, – WRITE: www.pravda.com.ua
What was and what happened in order.
Problem # 1. Missing a single approach to working with the market There was no unified approach to working with the market. Commercial proposals (KP) came chaotic (sometimes even through messengers like Viber), without the deadlines of submission and regulated procedure. Common practice was to take the existing (or existing) KP and, without making a request for the market, conclude a contract with those companies that somehow learned about AOP plans to contract the corresponding nomenclature. The rest of the manufacturers were in ignorance.
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We go on. The site did not function properly and understand the path of the supplier for counterparties was a separate extraordinary task. There were no market consultations as concepts. Among the suppliers formed a narrow circle of insiders who had detailed information about AOP plans, against the background of general misunderstanding of the “where”, “what” and “how” to submit.
The decision to conclude a contract on the basis of the KP obtained took place in a way that compromised the basic concept of procurement – equal conditions for suppliers. The former approach, when a commercial offer was immediately painted at several units, it meant an opportunity to leak prices for competitors.
Here is an example. AOP receives a request for the supply of H. But suddenly the third CP with a price is slightly lower than the first two. The difference could be minimal. In this case, the AOS made a decision to contract the third. Obviously, such coincidences are not accidental. Those who drain information about the price and time of consideration of proposals were unknown, since prices for current CP were opened long before consideration.
Of course, such approaches did not cause confidence in the market.
What have we changed: A clear, clear and unique approach to working with the market.
A single window was created to submit information on the agency’s website. The company submits an application, is verified for security and compliance criteria, and then automatically verified in the register of suppliers.
Why a registry? Two reasons. The first is in defense purchases, unlike public procurement, information about the customer’s purchase for safety reasons is limited or absent in principle. At the same time, virtuous and capable market players have to somehow learn about the customer’s plans.
A friend. On the side of the customer, there is an interest in accumulating and organizing market participants in order to ensure the order and create a competitive field. Management of interaction with suppliers through the registry is a hygienic requirement of any purchasing process. The purchaser must have a list of companies for which he sends in the KP, being convinced that such companies have been checked for sanctions and anti -corruption legislation.
Defining the concept, role and place of register of suppliers for defense procurement is one of the key tasks of the profile law on defense procurement. In peacetime and the use of its use would be mandatory. At the same time, in accordance with the recommendations of strategic inspection of defense procurement of NATO-Ukraine, adopted in July last year, the introduction of such a register should take place during the year.
Currently, more than a thousand counterparties have been entered in the register of suppliers – these are all those companies that have ever worked or currently working with AOPs, as well as those who sent KP. Only those companies that have not passed compliances (sub-bankruptcy, bankruptcy, etc.), as well as those included in the Black List, are excluded from the Register.
Problem # 2. Absence of anti-corruption and compliance architecture Until February 2025, the APO system of anti -corruption compliance and internal control did not actually work. This is confirmed by the results of the internal audits of the MOU. The risk registers, contrary to the requirements of the legislation, have not been drawn up and embodied in managing them.
What have we changed: Anti -Corruption Compliance based on ISO 37001.
According to the profile industry standard, nine operating procedures have been introduced in AOP, the implementation of which is entrusted to the newly created full -fledged unit. Not one person who has previously been actually removed from the activity of the enterprise. Internal control has worked – a register of risks and management plans for such risks has been created.
Among other things, the cross -cutting of the conflict of interests of employees, their loved ones is introduced, which should make it impossible to work with AOPs and potential suppliers simultaneously. Earlier, there was a thickening risk in AOP.
Separately, I note the proof of the CP received to the performers. After the deadline for submitting proposals, all without exception of the CP are registered and written to the program director and two heads of functional units.
Problem # 3. Paper and lack of processes At the same time, AOS performs several dozen processes, operates on hundreds of contracts, when concluding and performing a large array of data is created. Most of this data creates huge stacks of papers and complexity with the management of these data and their security. However, the agency did not formulate the concept of development of IT function that would ensure proper work within the relevant processes and with such data. There was neither the built process of development, nor operating infrastructure, nor product logic. Separate IT solutions used were not properly implemented, the role of information security was underestimated, and the work of the department was reduced to the closure of ad hoc tasks.
What have we changed: We deploy IT architecture for the internal and external user. We digitize the internal processes, the process of automatic mapping and the collection of commercial offers, supply management, work with directories, etc. In particular, in terms of KP processing – all offers are automatically unloaded from e -mail and recorded. We are working on the introduction of an internal IT system and have already launched the process of building a targeted security profile. And also – over the implementation of politicians and procedures that ensure data preservation, stable work of infrastructure, adherence to proper practices in working with information .
In addition, we are preparing for the launch of Dot-Chain Defense weapons. The digital system and partially automates the security process will allow the military to order what is needed. FPV drones will now be available to the order, and then the list should be expanded. The resolution was adopted on June 27. In test mode, the system is planned to be launched in July.
Resume AOP worked as an internal department of the Ministry of Defense, focusing on the number of contracts, sometimes even without budget obligations. This led to low assets of the Armed Forces at the end of 2024. There was no proactive work with the General Staff and MOU to get an annual need early, and in 2025 the need began in 2025 in February of the same year. In the rear purchases, we managed to launch purchases next year in the fall of the year, which was preceded by him.
From the start of our team work, we have shifted the focus on formal contracting for actual support. The focus is on timely planning, accuracy and systematic work with the market. We introduce a clear distinction between roles, new mechanisms of interaction with MOU and the General Staff. It is to allow you to move to the model of early contract.
We have updated the internal organizational structure of AOP based on international software management standards. It now has a functional platform with clear processes and a resource basis, whose internal clients are programs led by directors that focus on targets. The implemented software approach allows you to work on product logic, where the product is in a timely and fully supplied product.
The daily work of the AOP team today is solely about the interest of the state and society in the most effective provision of defense forces. All that helps this, we are perceived and taken into account.
We work on.
Arsen Zhumadilov
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