AOZ and DOT have been merged: Shmyhal explains how defense procurement will work now

Starting January 1, the Defense Procurement Agency of the Ministry of Defense will carry out all procurement for the army. About the new stage of defense procurement reform reported minister of Defense of Ukraine Denys Shmyhal.

From now on, all procurement for the army – weapons, clothing, ammunition, food, fuel and lubricants – will be carried out by a single Defense Procurement Agency of the Ministry of Defense of Ukraine, the minister said.

"This means a single point of responsibility for the supply chain and the implementation of a comprehensive supply strategy," he emphasized.

The Ministry of Defense continues to retain policy-making and control functions.

"The Supervisory Board of the Healthcare Association will continue its work. In January, members will be appointed to the vacant positions on a competitive basis," Shmyhal said.

Defense procurement reform has been underway since 2023. According to the head of the Ministry of Defense, this time has seen a move away from paper bureaucracy and the construction of a modern digital infrastructure in the defense procurement system

Shmyhal also added that a key achievement is the DOT-Chain system, which has allowed digitizing about 70% of the document flow in the supply of weapons and logistics goods.

Other important results, he said, include advance planning of needs and contracting, establishing direct interaction with the military and organizing systematic work with the market," he said.

In 2026, the MoD procurement agency will maintain its strategic course of digitalization, scaling of the DOT-Chain and strengthening the role of the military in decision-making through fast and targeted feedback tools.

• Previously, procurement was divided between the two agencies. The DOT procured property and food for the Defense Forces, while the AOZ procured weapons and ammunition. Both companies were established in September 2023.
• Public Council of the Ministry of Defense opposed of such a merger of procurement institutions and demanded that the Ministry of Defense provide stakeholders with a justification for its decision with clear economic indicators that would show that the merger would improve the work of procurers.
• NATO has recommended preserve the separate functioning of procurement agencies AOZ and DOT at least for the duration of the war.