The agency will operate in full capacity and process 95% of all acquisitions of the national defence system as soon as next January
In March, the Defence Resource Council of the Ministry of National Defence approved the national defence system public procurement reform which centres on the establishment of a centralised national defence system procurement agency based on the model of foreign agencies.
“We seek to ensure that financial resources for national defence are used transparently and efficiently, which means responsible planning of acquisitions, thorough market analysis, transparent procurement procedures, and tight control of contract implementation,” Minister of National Defence Raimundas Karoblis says.
According to the Minister, the reform aims for one central change: to swap funds absorption for funds investment, i.e. to refocus on the result where each and every Euro makes the Lithuanian Armed Forces stronger and soldiers – better equipped.
“First, all acquisitions have to be based on the long-term planning and priorities of the Lithuanian Armed Forces. Second, centralisation of procurement will help to simplify management and procedures, ensure transparency, and identify specific responsibilities. And three, we will pool top acquisition competence in the agency to accumulate and spread best practices,” R. Karoblis said.
The new defence procurement agency will fully take on its functions as of the beginning of next year and will be responsible for all acquisitions exceeding small value purchases in the national defence system. The said acquisitions amount to roughly 95% of procurement in the national defence system: large value weaponry, infrastructure, communications, information systems, and other purchases.
And contracting authorities of the national defence system will only be able to make small value purchases: these amount to approx. 5% of the national defence system procurement and are mostly commodities or services of daily use and their acquisition would not be efficient if centralised.
Also, the agency will not entail establishment of new posts: employees will be reassigned from downsized other national defence system contracting authorities , approx. 150 in total.
The agency is established following best practices in NATO and EU countries’ defence acquisition systems.