Analysis of international experience of approaches to set and manage the defence procurement (acquisition) system (the example of the UK ministry of defence)

Abstract

The article analyses the setting and functioning of the system of defence procurement (acquisition) for the United Kingdom's Ministry of Defenсe (MoD of the UK) by analysis of guidance documents regulating the activities of MoD of the UK and the defence procurement (acquisition) system. With the help of the structural-functional method, a hierarchy of governing documents, key participants of the public procurement system (acquisition) for the needs of MoD, their functional interconnections, roles and functions are established. By using a systematic approach, were identified strengths and weaknesses of the mentioned system and established that the formation and functioning of the system of state procurement (acquisition) of military equipment or services is a complex process, which is substantially affected by financial and time constraints, strategic vision and priorities for the development of the industry. The main principles for the most effective organization and functioning of the UK defence procurement system (acquisition) are: application of procedural framework, definition of rules and responsibilities, availability of competition and professional approach to evaluation and verification. Possible ways of efficient use of these principles in modern practice of implementation of the system of state procurement for the needs of the Ministry of Defenсe of Ukraine are suggested in article. For instance, such as: it is considered appropriate to introduce a culture of cost awareness (costing culture), which finds its application in global practice. This will make the process of managing financial resources an integral part of the process of making management decisions on the procurement (acquisitions) of military equipment (weapons, equipment (systems)), etc.