​The government wants to adopt an emergency decree on Wednesday that will regulate the prices of contracts for public procurement of goods/services in the defense and security spheres, including framework agreements concluded in these spheres.

Romanian tank at the Smardan training groundPhoto: Ground Forces of Romania

“The adjustment applies solely to the deliverable/deliverable difference that exists on the effective date of the regulation and is made with each payment claim throughout the life of contracts and defense framework agreements. and security, until full supply/provision and receipt of the purchased products/services, at the request of the performer.” this is shown in the GEO project rationale.

  • SEE DRAFT GEO AND KEYNOTE HERE

What motivates the price adjustment measure

  • “Given the need to ensure production capabilities to meet Romania’s defense needs, in the current context, in which the military conflict taking place on the territory of Ukraine and the blockade imposed at the international level against the Russian Federation have given rise to the emergence of new markets for materials, equipment and equipment necessary for production of products and services.
  • We note that the uncontrollable and unpredictable change of raw materials, differentiated by sectors of activity, to which is added the change generated by the well-known energy crisis that we are experiencing, and which, of course, has a direct impact on the production of the structures that the subjects are obliged to carry management in the field of defense,” the explanatory note says.

Budgetary impact of price adjustments from contracts for military products: more than 1.3 billion lei

The draft GEO provides a calculation formula and stipulates that “the corrected price cannot be lower by 50% and cannot exceed by more than 50% the value of the price per unit of the product established at the conclusion of the contract/framework agreement – for all subsequent contracts, concluded on its basis”.

In addition, the corrected price shall not be calculated and shall not be applied to deliveries of goods/services that are delayed and the date of delivery according to the contractual documents was a date prior to the date of entry into force of this emergency order.

The negative impact of this price adjustment on the budget this year will amount to more than 1.34 billion lei.