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Companies’ opportunities to participate in public procurements in the defence and security sector depend on the nature of the procurement and the applicable access restrictions. In the case of open procurements published in the public procurement register, all companies that meet the qualification requirements set out in the procurement documents and, where required, hold a valid security clearance at the appropriate level, are eligible to participate. Participation requires regular monitoring of procurement notices, registration for the specific procurement procedure, and the timely submission of compliant applications and tenders.

To facilitate the monitoring of public procurements, companies may subscribe to automated notifications from the public procurement register by selecting relevant CPV (Common Procurement Vocabulary) codes. The CPV system enables a structured overview of procurement procedures and directs information specifically to those areas that correspond to a company’s business profile, such as unmanned aerial vehicles, communications, surveillance, construction, or defence equipment procurements.

When selecting CPV codes, it is advisable to think more broadly than only in terms of the company’s core activity. As the CPV code is always determined by the contracting authority, substantively similar procurements may be published under very different codes. For this reason, it is recommended to subscribe to notifications for several related or comparable areas of activity, rather than relying solely on a single narrowly defined code. This broader approach helps to avoid situations in which potential business opportunities go unnoticed merely because the contracting authority has applied a different CPV code. As CPV codes are hierarchical in structure, it is also advisable, when setting up notifications, to prefer more general, higher-level codes that encompass all sub-groups sharing the same main code. This significantly broadens the range of procurements being monitored.

For companies operating in the defence and security sector, CPV codes covering categories such as equipment, technology, IT solutions, as well as transport and infrastructure, may be of relevance. Examples of such codes include:

• 43000000-3 (Construction and mining machinery).
• 35000000-4 (Security, firefighting, police and defence equipment),
• 35100000-5 (Emergency and security equipment),
• 35300000-7 (Weapons, ammunition and associated parts),
• 35700000-1 (Military electronic systems),
• 48800000-6 (Information systems and servers),
• 32400000-7 (Networks),
• 32500000-8 (Telecommunications equipment and accessories),
• 48000000-8 (Software packages and information systems),
• 44000000-0 (Construction structures and materials)

Transport vehicles and the corresponding CPV codes for related components may also be relevant, including:

• 34000000-7 (Transport equipment and auxiliary products to transportation),
• 34100000-8 (Motor vehicles),
• 34200000-9 (Vehicle bodies, trailers and semi-trailers),
• 34300000-0 (Parts and accessories for vehicles and their engines),
• 34400000-1 (Motorcycles, bicycles and sidecars),
• 34500000-2 (Ships and boats),
• 34600000-3 (Railway and tramway locomotives and rolling stock),
• 34700000-4 (Aircraft and spacecraft),
• 34900000-6 (Various transport equipment and spare parts).

As contracting authorities do not always apply CPV codes in a uniform manner, a relevant procurement may sometimes be registered under an unexpected code. For this reason, it is advisable to set up notifications based on multiple CPV codes and to maintain regular monitoring to ensure that no business opportunities are overlooked. It is important to note that only one CPV code can be included in a single notification subscription. If a company’s activities cover several sectors, multiple separate subscriptions should therefore be created, each based on a different CPV code.

In addition to the public procurement register, companies are also advised to monitor the websites of contracting authorities where procurement plans are published. For example, the Estonian Centre for Defence Investments regularly publishes and updates its procurement plan on its website, providing an overview of upcoming and planned procurements together with indicative timelines and budgets. Monitoring such plans enables companies to prepare in advance, identify potential opportunities prior to their formal announcement, and plan resources strategically.

In recent years, defence sector procurements in Estonia have clearly reflected the state’s objective to strengthen its defence capability in a comprehensive and long-term manner. The state does not focus solely on the acquisition of equipment but increasingly also orders maintenance, supervision, software solutions, training, and life-cycle services. Procurements have covered, among other things, the maintenance of strategic communication networks, counter-drone and surveillance systems, body armour and ballistic protection equipment, the modernisation of weapons systems, as well as infrastructure projects. This diverse procurement landscape demonstrates that defence sector procurements offer opportunities for companies with a wide range of profiles, from engineering and IT service providers to construction and manufacturing companies.

In summary, monitoring public procurements constitutes a strategic component of a company’s business planning. The public procurement register and the procurement plans published by contracting authorities enable companies to understand market trends, identify suitable projects at an early stage, and prepare for participation in procurement procedures in a systematic manner.

In certain cases, a contracting authority is entitled to conduct a procurement outside the ordinary public procurement procedures where the nature of the subject matter requires an enhanced level of confidentiality. This primarily concerns situations where the procurement is related to national security, intelligence or counterintelligence activities, international cooperation programmes or intergovernmental agreements, as well as projects carried out under special procedures of international organisations or as joint procurements with other states.

A contracting authority may also derogate from the standard rules where the conduct of the procurement would require the disclosure of information whose public release would be detrimental to national security interests, or where restricting the procedure is necessary to ensure the protection of classified information. In the defence and security sector, this mainly concerns procurements where the performance of the contract requires access to state secrets or classified foreign information. In such cases, the contracting authority may dispense with an open competitive procedure and apply a negotiated procedure without prior publication or conclude the contract directly with a trusted partner.

Participation in restricted-access procurements generally takes place only by direct invitation of the contracting authority, which makes a company’s own proactivity and visibility of key importance. Companies should deliberately position themselves as potential cooperation partners by proactively contacting the relevant contracting authorities (such as the Ministry of Defence, the Ministry of the Interior, the Estonian Internal Security Service, the Police and Border Guard Board, the Rescue Board, the Estonian Foreign Intelligence Service, C14 Foundation, the Estonian Centre for Defence Investments, and the Estonian Defence Forces) and presenting their products, services, or capabilities. In addition, companies are encouraged to participate in sector-specific trade fairs, defence industry forums, and international cooperation projects in which Estonian contracting authorities are also involved. This enables companies to establish relationships, build trust, and gain visibility with potential contracting authorities well before the next restricted-access procurement is formally initiated.

Accordingly, it must be considered that such procurements are not publicly accessible and that no information about them is published in the public procurement register or in other public channels. These procedures are accessible only to those entities to whom the contracting authority has issued an invitation. For this reason, passive monitoring alone is insufficient, and companies must actively ensure their visibility to contracting authorities to be considered as potential partners at all.

It is important to understand that the procedural rules governing public procurement depend primarily on the subject matter of the procurement, rather than on the formal status of the contracting authority. The special provisions applicable to the defence and security sector apply only where the subject of the procurement falls within the scope of the relevant special regime, for example where the procurement concerns military or security-purpose equipment, armaments, communication and surveillance systems, protective equipment, or their maintenance and life-cycle services, or where the procurement involves the handling of classified information. Where, however, the procurement of defence-related goods, works or services does not require the processing of state secrets or other information subject to access restrictions and does not directly relate to safeguarding national security, such procurement may be conducted under the ordinary, i.e. classical, public procurement rules. In practice, this means that the same contracting authority may conduct both classical procurements and defence and security procurements subject to a special regime, or apply statutory exemptions, depending on whether the specific subject matter of the procurement is classified or not.

In the case of classical procurements, the general principles of the Public Procurement Act apply, emphasising transparency, competition and the equal treatment of tenderers. Such procurements are published in the public procurement register, and all companies meeting the applicable requirements may submit tenders. Defence and security procurements, by contrast, are subject to special procedural rules designed to protect national security interests. These permit the contracting authority to apply procedures with restricted participation or negotiated procedures without prior publication, to withhold certain information from public disclosure, or to restrict access to tenders and procurement documents. In addition, the contracting authority may require tenderers to provide enhanced security clearances, guarantees of security of supply, and proof of their capacity to handle classified information.

In addition to these two procedural frameworks, there exists a third category in the form of public procurement exemptions, in which case the Public Procurement Act does not apply at all. This does not, however, mean that such purchases are carried out in an unregulated manner. In these situations, the contracting authority follows the procedural rules established in the procurement documents or in its internal procedures, which determine how the procurement contract is concluded and how transparency, legality, and the protection of security interests are ensured.

In summary, the Estonian defence and security public procurement system operates on three levels. For companies, this means that the opportunities for participation and the applicable conditions depend directly on which procedural framework a particular procurement falls under.

The possibilities for challenging defence sector procurements depend on the type of procurement. In the case of public procurements, the first step is to file a challenge with the Public Procurement Review Committee, and, if necessary, subsequently with the Administrative Court, where the standard time limit for lodging an appeal is generally 10 days. In classified procurements, decisions are challenged directly before the Administrative Court, without the preliminary review committee stage, and the applicable time limit depends on the nature of the dispute (typically 10–30 days, and in certain cases up to 6 months). The Supreme Court ruling in Gemalto AG v The Police and Border Guard Board (case No. 3-17-1151) confirms that procurements conducted under statutory exemptions are also subject to the general review procedure and that, as a rule, a review before the Review Committee is required prior to lodging an action with the court, except in classified matters.

The EIS Defence Industry Platform offers companies a wide range of opportunities to apply for grants and investment support for projects related to the development, production, or testing of defence and security technologies. Funding may be applied for to support applied research, product development, the creation and testing of prototypes, as well as the strategic development and internationalisation of companies. In addition, the platform provides opportunities for cooperation with the Estonian Defence Forces and other public-sector partners through testing and experimentation programmes, participation in export missions, and support for increasing production capacity or entering new markets.

The European Defence Fund (EDF) is an EU programme aimed at supporting defence-related research and development and strengthening the competitiveness of the European defence industry. Through Estonia, companies and research institutions may participate in consortia in both capability development and research-oriented projects. The total budget of the Fund for the period 2021–2027 amounts to EUR 8 billion. To participate in EDF projects, a consortium must consist of at least three partners from different EU Member States or Norway, in accordance with the specific focus of the relevant call for proposals. In Estonia, the Ministry of Defence coordinates the pre-selection of applications and supports companies in the preparation of suitable projects. For the 2025 funding cycle, the Estonian national activities are scheduled so that Letters of Intent for funding will be submitted at the end of August, with decisions expected in September. The activities of the 2026 application programme will be published at the beginning of the year.

Keidi Kõiv is a highly regarded expert in the field of public procurement and dispute resolution. She has a strong public-sector background, having established the public procurement supervision function at the Estonian Agricultural Registers and Information Board (PRIA) Development Support Department, and has long advised both contracting authorities and tenderers, supporting public institutions and applicants in public procurement matters and in the preparation of projects related to European Union funding.

A significant part of Keidi’s practice also involves the resolution of civil and administrative disputes, where she has represented clients both in out-of-court proceedings and before the courts.

As an experienced trainer, Keidi has delivered hundreds of training sessions to public-sector organisations and private companies, providing clear and practical guidance on the effective organisation of public procurement procedures.