Features of state regulation of defense procurements

Abstract

The article is devoted to the consideration of state regulation in the field of public procurement, in particular in the defense-industrial complex. The main law defining the basic principles and mechanisms of procurement is the Law of Ukraine «On Public Procurement». However, during the period of martial law, many changes were made in the procedures and mechanisms of public procurement, changes were already made more than once, through the adoption of separate laws and by-laws. The article analyzes the peculiarities of the application of public procurement mechanisms in certain sectors of the economy, in particular the defense-industrial complex. The necessity of modernization and improvement the procurement procedures for successful and effective compliance with the principles of competition and overcoming corruption, and other principles stipulated by legislation, is argued. Mechanisms for conducting procurement procedures are analyzed as one of the key elements of increasing the effectiveness of state economic policy, which is based, in particular, on the principles of fair competition, openness and transparency, non-discrimination of participants, objectivity and impartiality of evaluation of tender offers.
 It is substantiated that it is important to borrow international procurement experience to ensure compliance of national legislation with EU legislation. The issue of ensuring the appropriate level of defense capability of Ukraine in the conditions of countering full-scale military aggression on the territory of Ukraine by the Russian Federation is quite acute. A pressing challenge now is to ensure the rational spending of budget funds and the effective functioning and development of the state defense procurement system. It has been proven that the mechanism for the redistribution of budget funds should have the most transparent order of organization and the order of execution of the concluded procurement contract, which in the case of defense procurement involves reducing the number of closed procurements, excessive secrecy, increasing competitive procedures in the procurement of imported products and services, further improving pricing, canceling profit limits, accounting for inflation and life cycle cost.
 It is argued that consideration of physical, economic and informational security requirements is extremely important. It is about compliance with the principles of protecting customers from military threats, ensuring the simplification of public procurement by reducing the terms of the procurement procedure and simplifying the requirements for procedure participants, the effectiveness of the procurement process and the efficiency of the use of funds, primarily through the involvement of domestic entrepreneurs in tenders and ensuring the development of the domestic market, stability and defense capability.