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LAW OF UKRAINE

of July 17, 2020 No. 808-IX

About defensive purchases

This Law determines the general legal basis of planning, procedure for forming of amounts and features of implementation of purchases of goods, works and services of defensive appointment for ensuring needs of the sector of safety and defense, and also other goods, works and services for secured provision of requirements of safety and defense, and also procedure of the state and democratic civil control in the sphere of defensive purchases.

The purpose of this Law is determination of the legal basis for ensuring material and scientific needs of the sector of safety and defense of the state by effective and transparent implementation of defensive purchases with observance of measures of protection of national interests, creations of competitive environment, prevention of corruption in the sphere of defensive purchases, development of fair competition, and also effective and transparent planning, realization and control of implementation of defensive purchases.

This Law also provides harmonization of the legislation of Ukraine in the sphere of defensive purchases with Directive 2009/81/EU provisions according to the Agreement on Association between Ukraine, on the one hand, and the European Union, European Atomic Energy Community and their state members, on the other hand.

Section I General provisions

Article 1. Determinations of terms

1. In this Law the stated below terms are used in such value:

1) life cycle cost - the cost of all expenses connected with goods lifecycle, works and services of defensive appointment;

2) the contractor of the public contract (agreement) on defensive purchases (further - the contractor of the public contract (agreement) - the subject of managing, irrespective of legal form and pattern of ownership, or the foreign subject of managing (other foreign legal entity) or associations of legal entities with which the public contract (agreement) by results of carrying out the purchases determined by this Law is signed;

3) selection of participants of the simplified biddings using electronic purchasing system - process of determination of participants of the simplified biddings by running an electronic auction;

4) secured provision of requirements of safety and defense - ensuring the subjects determined by Item 10 parts one of this Article, the goods, works and services necessary for accomplishment of tasks by repulse to the armed aggression and prevention of threats of homeland security, independence of Ukraine, its territorial integrity and immunity concerning fight against terrorism, elimination of circumstances which caused need of introduction of emergency state;

5) principal organ in the sphere of planning of defensive purchases - the central executive body determined by the Cabinet of Ministers of Ukraine which provides forming and realizes the state military-industrial policy;

6) principal organ in the sphere of implementation of defensive purchases - the central executive body which provides forming and realizes state policy on national security issues in the military sphere, spheres of defense and military construction in peace time and during the special period;

7) the state guaranteeing quality - establishment by authorized body on the state guaranteeing quality of compliance of processes of quality assurance of goods, works and services of defensive appointment to requirements of public contracts (agreements);

8) the electronic register of participants of selection and contractors of public contracts (agreements) (further - the Register) - system of accumulating, processing, accounting, protection and provision of data of information on participants of selection and contractors of public contracts (agreements);

9) the single contractor of the public contract (agreement) (further - the single contractor) - the subject of managing which is entered in the Register and has exclusive opportunities for production of goods, performance of works and rendering services of defensive appointment;

10) the state customers in the sphere of defense (further - the state customers) - the central executive bodies determined by the Cabinet of Ministers of Ukraine, other state bodies, military forming formed according to the laws of Ukraine;

11) summary three-year procurement plan of goods, works and services of defensive appointment in the closed purchases - the list (nomenclature) approved by the Cabinet of Ministers of Ukraine and amounts of the goods, works and services of defensive appointment for each state customer delivered (purchased) on the closed purchases and also the amount of means provided on the specified purposes on planned and following for planned two budget periods;

12) lifecycle - set of the interconnected stages of goods, works and services of defensive appointment from plan of their creation before retirement;

13) providing the price offer - provision of ensuring obligation fulfillment by the participant of selection before the state customer, arisen in connection with submission of the price offer in the form of such providing as guarantee;

14) effectiveness ratio - the summary calculated indicator of technical and fighting capabilities, reliability, stability, suitability for certain fighting conditions, system of arms, military and other equipment;

15) compensation - expense recovery of the state customer, the goods connected with purchase, works and services of defensive appointment in import which is provided according to the compensation (offset) agreement to the state of Ukraine;

16) the compensation (offset) agreement (further - the offset agreement) - the prisoner between the offset beneficiary and the foreign contractor the external economic agreement (contract) determining subject and the cost of the offset obligation which the foreign contractor shall execute in the territory of Ukraine;

17) the public contract (agreement) (further - the public contract (agreement)) - the agreement signed in writing by the state customer on behalf of the state with the contractor according to the approved procurement plans of goods, works and services of defensive appointment;

18) production localization - specific weight of cost of raw materials, materials, nodes, aggregates, details and components of domestic origin, and also performance of works and rendering services by domestic manufacturers on customs area of Ukraine in the cost of the goods, works and services which are purchase subject;

19) the international specialized organizations, their representations conducting procurements of goods, works and services of defensive appointment - specialized funds, the companies, organizations and the organizations, programs of the international military sales which list is determined by the Cabinet of Ministers of Ukraine which provide services in purchases of goods, works and services of defensive appointment based on the relevant agreements and according to internal regulations and procedures of such organizations;

20) non-competitive procurement procedure - procedure which has exclusive nature owing to specifics and/or conditions of subject of purchase which do not give the chance to carry out any other competitive purchase;

21) defensive purchases - implementation by the state customer of purchases of the goods, works and services intended for accomplishment of state programs in spheres of homeland security and defense, and also other goods, works and services for secured provision of requirements of safety and defense;

22) the offset beneficiary - the state customer, other subject, irrespective of pattern of ownership which receives compensation under compensation (offset) agreements and which selection is performed by the offset commission on representation of the state customer;

23) the plan of quality - the document establishing requirements to activities (processes), distribution of responsibility and management of appropriate resources which shall be applied to specific goods, works and services for the purpose of ensuring their quality during execution of the public contract (agreement);

24) services of defensive appointment - the services connected with providing lifecycle of objects and constructions of defensive and special purpose, goods of defensive appointment including:

development and deployment of information, information and analytical and other telecommunication systems, systems of cyber security and cyberprotection;

development of standards and technical specifications, purchase of standards for requirements satisfaction on ensuring national security and defense;

forming and maintaining insurance fund of documentation on arms, the military and special equipment, other military property, objects and constructions of defensive and special purpose;

services necessary for secured provision of requirements of safety and defense;

25) works of defensive appointment:

basic scientific, applied researches and experimental developments for secured provision of requirements of safety and defense;

research and development works or their separate stages on development, production, use, support, withdrawal of goods of defensive appointment and the special equipment, development of special technologies, materials and standards;

construction, capital repairs, reconstruction of objects and constructions of defensive and special purpose;

creation new and upgrade, repair, reconstruction, expansion and re-equipment of the existing production capacities for production of goods of defensive appointment;

works necessary for secured provision of requirements of safety and defense;

26) service of the state customer - the subject of managing who belongs to the sphere of management of the state customer, or structural division of the state customer, authorized by it on implementation of purchases and the conclusion of public contracts (contracts) for purchase of goods, works and services of defensive appointment and other goods, works and services for secured provision of requirements of safety and defense;

27) the special equipment - the equipment which has special purpose in certain scope, in particular, of investigation, counterintelligence, communications, information security, cyber security and cyberprotection, and also the equipment and the equipment for control and carrying out testing of such means;

28) collaborators/subcontractors are subjects of managing, irrespective of their pattern of ownership, foreign subjects of managing which are involved by contractors of public contracts (agreements) based on agreements, including the external economic agreements (contracts), in execution of the public contracts (agreements) signed with the state customer;

29) goods of defensive appointment - arms, the military and special equipment, weapon and ammunition, special components for their production and operation, the materials and the equipment which are specially intended for their development, production or use, special technical means, technical means of investigation, means of technical and cryptographic information security, means of special communication, the space equipment of military and dual purpose, individual protection equipment (bullet-proof vests of all classes of protection, shock-proof, pulezashchitny helmets, protection sets shock-proof and so forth), special means (the handcuffs, bludgeons, means equipped with substances of tear, svetoshumovy action, etc.), special (specialized) vehicles; computer, optical, measuring and other equipment; the special uniform necessary for accomplishment of tasks by law enforcement agencies, structural divisions of the executive bodies realizing state policy in spheres of ensuring protection of human rights and freedoms, interests of society and the state, counteraction of crime, maintenance of public safety and procedure, military forming with law-enforcement functions, goods of double use for secured provision of requirements of safety and defense, development of defensive capacity of the state and system of national stability, and also any other goods which are bought by the state customers determined according to Item 10 parts one of this Article for secured provision of requirements of safety and defense;

30) the technical specification - the document approved by the state customer, establishing requirements to goods, works and services of defensive appointment which are bought, in particular, concerning their quality, technical characteristics, safety of use, the sizes, designations, terminology, packaging and marking or processes and methods of production, and also the requirement concerning assessment procedures of compliance;

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