Last updated: 28.10.2025
The Polish defense and military market is not only a commercial opportunity,but also an important part of the security architecture of Europe and NATO. Defense spending are motivated by geopolitical imperatives, technological progress, and the pursuit of operational sovereignty.
Poland’s significant budgetary commitments make it one of the most dynamic government procurement markets in Europe, where expenditures must be made with due economy and purpose.
One important factor shaping defence procurement in Poland is the country’s strategic location on NATO’s eastern flank, which necessitates a strong and modern military posture supported by efficient procurement processes.
Key institutions in Polish defense and military industry
The central institution responsible for the military modernization of the Polish Armed Forces is the Ministry of National Defence (MON). The MON remains the highest authority shaping defense policy, controlling the budget, and exercising strategic oversight. It chairs the Technical Modernization Council, which gives it the final say on priorities and financing for modernization programs.
Since January 1, 2022, the Armament Agency has played a key role in the procurement process. It is a specialized unit responsible, among other things, for defining requirements, conducting proceedings, concluding contracts, and managing them. For foreign investors, the Armament Agency is the main partner for discussions. Its tasks include:
- Defining technical requirements for equipment, which has been consolidated to speed up the process.
- Conducting the entire procurement procedure, from market analysis to contract conclusion.
- Managing research and development (R&D) projects.
- Supervising the quality assurance of the equipment supplied.
- Negotiating and supervising offset agreements.
The Military Counterintelligence Service (SKW) and the Internal Security Agency (ABW) are national security agencies responsible for vetting companies and personnel. They conduct investigations and issue mandatory Industrial Security Clearances, making them key gatekeepers for access to any contract involving classified information.
Public Procurement in Polish defense sector
Public Procurement Law in Poland and exemptions
In theory, military equipment contracts can be awarded under the Public Procurement Law (PZP), which contains specific rules for the defense sector.
These regulations set out the specific rules for awarding contracts. They specify the subjective scope (who the contracting authority is, e.g., public and sectoral entities) and the objective scope (what constitutes a contract in the field of defense and security). This includes contracts for the supply of military equipment and defence products, as well as construction works and services for military purposes or sensitive construction works and services for security purposes.
The Act defines key concepts such as “military equipment” and “sensitive equipment,” and their application triggers a special legal regime.
It also sets financial thresholds above which fully harmonized EU law rules apply. These thresholds are periodically updated, and their values vary depending on the type of contract, for example, they are different for services and supplies than for construction works.
In practice, however, most key and strategic defense contracts are awarded in a manner that deviates from the application of the Public Procurement Law to the extent necessary to protect fundamental national security interests.
Essential State Security Interest (PIBP)
What is an “Essential State Security Interest” (PIBP)?
It is a clause that allows the government to deviate from standard competitive tendering procedures when purchasing weapons and military equipment. The aim is to protect strategic national interests such as security of supply, confidentiality of information, or the maintenance of key industrial capabilities within the country.
The main source is Article 346 of the Treaty on the Functioning of the European Union (TFEU). According to this provision, an EU member state may take measures it deems necessary to protect its vital security interests, which relate to the production of or trade in arms, ammunition, and war material.
When the Ministry of Defense invokes the PIBP, the contract is not awarded through a public tender (open or restricted). Instead, the Armament Agency may:
- Enter into direct negotiations with one or more selected economic operators (domestic or foreign).
- Decide to conclude an government-to-government (G2G) agreements, e.g., with the US government under the Foreign Military Sales (FMS) procedure.
- Waive or bypass the obligation to publish a contract notice in public systems, especially when handling sensitive strategic supplies or various types of high-risk equipment.
Where to Find Military Tender in Poland?
For bidders and medium sized enterprises seeking to participate in Polish defence markets, it is essential to monitor key channels:
- e-Zamówienia platform
Central government portal for all public procurement in Poland, including defense procurement.
- Public Procurement Bulletin (BZP)
Currently integrated with the e-Zamówienia platform.
- Tenders Electronic Daily (TED)
The EU-wide portal for contracts above European thresholds.
- Ministry of Defense and Armament Agency websites
The Ministry and its agencies often publish notices and long term plans on their own websites.
- Commercial platforms
Individual units of the Ministry of Defense may use commercial platforms, such as Open Nexus, for their procurement.
Procurement Procedures for Defence and Security Sectors in Poland
The Public Procurement Law specifies a separate set of procedures for the defense and security sector, which address considerable challenges related to national security, technology, and cooperation among entities operating in both military and civilian domains.
- Restricted tender
A two-stage process in which bidders first submit applications for admission and are pre-qualified. Only selected candidates are then invited to submit bids. This is one of the basic procedures.
- Negotiated procedure with publication
After prequalification, the contracting authority negotiates the terms of the bids with the participants in order to select the best solution before inviting them to submit final bids.
- Competitive dialogue
Used for particularly complex projects where the contracting authority is unable to determine the technical solution in advance. It involves structured dialogue with selected bidders to develop one or more suitable solutions before inviting them to submit final bids.
Type of Procedure
| Type | Legal Basis (Public Procurement Law) | Key Features | Typical Application |
| Limited Tender | Art. 411 | Two-stage: 1. Prequalification of bidders. 2. Invitation to public tender only for qualified candidates. No negotiation of bids. | Standard contracts where the ordering party can clearly define its requirements and wants to limit participation to capable bidders. |
| Negotiated with Announcement | Art. 412 | Two-stage: 1. Prequalification. 2. Negotiations with bidders to improve their initial bids. Final bids are then submitted. | Complex contracts where the ordering party wants to use industry expertise to refine the solution and obtain better value. |
| Competitive Dialogue | Art. 413 | Multi-stage dialogue with bidders to develop and define the optimal solution before inviting them to submit final bids. | Highly innovative or complex projects where the technical solution is not known in advance (e.g., development of a new C4I system). |
| Single-Source Procurement | Art. 415 | Direct award of a contract to a single supplier without competition. | Exceptional urgency due to a crisis, protection of exclusive rights, or follow-on contracts where a change of supplier is not possible. |
Military Public Procurement in Poland – Special and non-competitive procedures
Negotiations without publication
A non-competitive procedure used in specific, exceptional circumstances, such as extreme urgency or when only one supplier can fulfill the contract for technical reasons.
Single-source procurement
The most exceptional procedure, in which the ordering party directly invites a single contractor to negotiate a contract. The justifications are very strict and include crisis situations, urgent operational needs, or additional supplies from an existing supplier.
Defence Procurement Outside the Polish Public Procurement Law
Role of the Armament Agency
The Armament Agency is responsible for the entire process:
- Conducting technical dialogue with potential suppliers.
- Drafting and conducting negotiations.
- Concluding contracts for the supply of equipment.
- Supervising the performance of contracts, including offset agreements.
Negotiations with selected contractors
This is the most common form of awarding contracts based on PIBP. The government identifies the technology or product it wants to acquire and then invites the manufacturer (or several manufacturers) to talks. Negotiations cover not only price, but also technology transfer, delivery dates, training, and logistics package.
Government-to-Government agreements in Poland
When purchasing complex weapons systems from strategic allies, Poland often opts for the G2G formula. Such an agreement simplifies the procedure and provides government guarantees as to the quality and timeliness of deliveries, but at the same time limits the scope for price negotiations for the Polish side.
Offset in Polish defense procurement
Offset is a form of economic cooperation that the State Treasury may require from a foreign supplier in exchange for awarding it an arms contract. The purpose of offset is to enable the Polish defense industry to obtain the transfer of technology, know-how, production or service capabilities. This is aimed at strengthening the country’s defense potential and reducing its dependence on foreign entities in the maintenance and servicing of key military equipment.
According to the Poland’s Act on Offset Agreements of June 26, 2014, offset is used only in contracts that are excluded from the application of the Public Procurement Polish Law on the basis of the PIBP. The requirement to conclude an offset agreement is not automatic – the Council of Ministers decides on its necessity, taking into account the need to protect the interests of the state.
Key principles of offset in Polish Military Sector
- Connection with the subject of delivery
Offset obligations must be directly related to the military equipment being delivered.
- Purpose
The main purpose is to establish or maintain production, service, or research and development capabilities in Poland that are necessary from the point of view of state security.
- Offset recipients
The beneficiaries are mainly companies from the Polish defense sector (e.g., from the Polish Armaments Group).
- Offset agreement
This is a separate agreement concluded between the State Treasury and a foreign supplier, parallel to the main supply agreement.
For a foreign investor, this means that when drafting an offer for the Polish army, they must also develop a proposal for industrial cooperation (an offset offer) that will be attractive to the Polish government and industry.
Industrial Security Certificate (ŚBP)
Obtaining an ISC is mandatory for any contract involving access to classified information marked “Confidential” or higher. The ISC is described in detail here (link to article).
FAQ: Military Public Procurement in Poland
What is Public Procurement Office in Poland?
The Public Procurement Office (PPO) is the central body responsible for drafting, interpreting, and overseeing the application of public procurement law in Poland. Although military and national defense contracts often fall under specific provisions or exemptions from the general regime, the PPO remains a key institution in shaping the legal framework and ensuring transparency in contract award procedures. It also cooperates with the European Commission to align Polish procurement regulations with EU law, including defence-related directives.
What is the National Appeal Chamber?
The National Appeal Chamber (KIO) is a specialized body in Poland that resolves disputes related to public procurement procedures, including in the defense sector. Contractors may file appeals concerning the evaluation of offers, data submitted by other bidders, or procedural irregularities.
Can offset include projects outside defense manufacturing?
Yes. While the main goal is to support domestic defence products manufacturing, offsets may extend to other areas, such as R&D or technical assistance that benefit the broader defense sector.
What challenges are associated with the role of military personnel in defence procurement?
One of the considerable challenges in defence procurement is ensuring the availability of qualified military personnel to manage increasingly sophisticated systems sourced from a variety of foreign suppliers. This diversity in technology creates operability issues and requires specialized training.
