Military — 2026-05-26

Ukraine Competitive Procurement Across Six Manufacturers Saves 16 Percent on Largest 155mm Shell Contract

BLUFWhether DOT extends competitive tendering to drones by the end of Q3 2026 remains genuinely uncertain, as security carve-outs and industry resistance give the ministry room to stall.

Ukraine's Defense Procurement Agency (DOT) signed contracts with six manufacturers for its largest-ever batch of 155mm long-range artillery shells, Defense Minister Mykhailo Fedorov announced on May 25 123. The competitive tender saved 16 percent of the initial allocated amount, described by the ministry as billions of hryvnias, and enabled the contracting of tens of thousands of additional rounds beyond the original planned quantity, with full delivery due during 2026 234. Fedorov said competitive procurement will next cover FPV, mid-strike, and deep-strike drones, with a transition to tender procedures across all applicable defense sectors planned for summer 2026, partly through Prozorro 123. Militarnyi separately reported that Ukrainian Armor had alleged DOT was awarding contracts at lowest price to non-compliant suppliers; DOT denied the claims and said it had launched an internal investigation 4.

Analysis
The security carve-outs Fedorov named give DOT structural latitude to keep sensitive drone contracts off Prozorro while claiming procedural compliance, making a public tender by end of Q3 2026 genuinely uncertain. The Ukrainian Armor dispute, now under internal investigation, signals organized industry resistance capable of delaying the rollout, and the lowest-price selection model may trade short-term savings for front-line supply risk if delivery verification proves inadequate. Moderate confidence; sourcing is concentrated at a single ministerial press conference with no corroborating indicators of active drone tender preparation. Western defense ministries vetting Ukrainian drone suppliers need tenders to materialize before end of September; absent that, drone contracting remains on opaque bilateral terms that block new-entrant supplier access.

4 sources

Competition across six manufacturers saves Ukraine 16% on its largest-ever 155mm shell contract - Euromaidan Press
DOT purchased a record number of long-range 155mm shells and saved 16% - Fedorov - Ukrainian News Agency (UNN)
Ukraine completes largest artillery ammunition procurement to expand long-range fire capability - Defence Industry Europe
Procurement of 155-mm Ammunition for the Armed Forces of Ukraine via Tender Saved 16% of Allocated Funds - Militarnyi