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Friday, October 7, 2022

Ukraine Contracting Actions

More recent packages have included capabilities that have longer production times and will be delivered over multiple years.

The Department of Defense is delivering security assistance to Ukraine through two main authorities:

Ukraine Security Assistance (USAI):

  • Under USAI, the Department procures defense articles directly from industry to support Ukraine.
  • Congress has appropriated $6 billion in USAI funding in fiscal year 2022 (FY22). The Department has committed $4.8 billion through notifications to Congress and $1.2 billion has been awarded on contract.
  • Earlier USAI packages generally included items that could be procured for immediate delivery to Ukraine; more recent packages have included capabilities that have longer production times and will be delivered over multiple years, signaling the USG’s long-term commitment to supporting Ukraine.

Presidential Drawdown Authority (PDA):

  • PDA allows the Department to deliver equipment to Ukraine by drawing down from DoD stocks.
  • Congress has appropriated $12.5 billion in FY22 to replace these stocks. The Department has to-date identified $7 billion in replacement actions, of which $1.2 billion have been awarded on contract.
  • Replacement contracts are expected to deliver over multiple years, as many capabilities delivered to Ukraine, such as advanced munitions, have two- to three-year production times.

The Department is working closely with industry to produce these systems under both USAI and replacement contracts as quickly as possible, using Undefinitized Contract Actions (UCAs), Indefinite Delivery / Indefinite Quantity (IDIQ) contracts, and other tools that accelerate acquisition timelines.

In addition to procurement funding, some replacement contracts also include investments in the industrial base to expand or accelerate production throughput.

Read a breakdown of contracting actions here

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The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.

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