The Ministry of Defense changes the rules for the purchase of fuel for the Armed Forces of Ukraine
The procurement agency of the Ministry of Defense “State Rear Operator” (DOT) has expanded the number of lots in the procurement of fuel for the Armed Forces of Ukraine in order to improve the regional supply model. About this informs press service of the Ministry of Defense.
DOT continues to improve procurement mechanisms, expanding business opportunities and increasing competition in tenders. The next step in the development of the regional model was its deepening by increasing the number of lots, which should attract more participants and make procurement more efficient.
“The deepening of the regional model makes it possible to ensure the uninterrupted supply of fuel to the troops”, – noted the director of the procurement policy department of the Ministry of Defense Hleb Kanevskyi.
The Ministry of Defense reminded that last year the DOT introduced a regional fuel procurement model, hoping for more active participation of companies, taking into account the peculiarities of logistics chains in different regions. This model provided for the division of supply into Eastern, Southern, Central and Western regions. The number of bidders and the level of savings at auctions confirmed its effectiveness.
In order to increase competition and optimize logistics processes, DOT decided to further detail the regional model. Previously, regional lots covered four to six supply points. Now their number will be doubled: instead of four large regional lots, there will be eight smaller ones, each with one or two supply points.
According to Maryna Eremeyeva, director of the fuel and lubricants program of the DOT, the fuel market in Ukraine remains vulnerable due to the constant threat from Russia, which forces suppliers to keep limited fuel stocks in the country.
“The deepening of the regional model makes it possible to reduce security risks for business, reducing the amount of fuel needed to participate in the bidding. This opens up opportunities for new market players and increases the level of competition.” – she explained.
According to the results of auctions for the purchase of arctic diesel fuel, on lots with only one participant, the average level of savings from the expected cost was 2.7%, while on lots with more than two participants – an average of 7.5%.
