Ali Zuweid's Political Programme · Legislative Proposal · Security, Defence and Sovereignty
Defence Procurement, Contracts and Military Expenditure Integrity Bill
Subjecting the entire defence acquisition cycle—from identifying need to acceptance, maintenance and disposal—to special rules combining military readiness and security of supply with competition, integrity and audit, and preventing secrecy, urgency or intermediaries from becoming routes around accountability.
Executive Summary
Iraq has a modern general government contracting framework: Public Contracts Implementation Instructions No. (1) of 2025 were published in Iraqi Official Gazette issue (4849) on 17 November 2025 and came into application on 15 February 2026, replacing the 2014 instructions. The Ministry of Planning also publishes a specialized standard document for supplying arms, military equipment and materials. The problem is therefore not a complete absence of contracting rules, but the lack of an integrated defence law regulating the distinctive military acquisition cycle, secrecy, single-source procurement, government-to-government contracts, security of supply, intermediaries, whole-life costs and oversight of major programmes.
The proposal therefore neither creates a parallel public contracting system nor exempts the Ministry of Defence from general rules. It gives the special law precedence over instructions in specialized defence matters while retaining public contracts instructions and standard documents as supplementary references. It also affirms the right of the Federal Board of Supreme Audit, Federal Commission of Integrity, judiciary and competent parliamentary committees to access classified contracts under security arrangements: secrecy protects military information, not financial decisions from audit.
The proposal focuses on linking procurement to a demonstrated military need and an affordable life-cycle cost. It separates requirement-setting from supplier selection, requires disclosure of beneficial owners, intermediaries, commissions and conflicts of interest, and establishes special controls for single-source procurement, urgent purchases, international government-to-government contracts and subsequent contract variations. It also regulates local content and military manufacturing on the basis of quality and feasibility rather than nominal protection, and provides a secure avenue for challenges and parliamentary oversight without revealing sensitive capabilities.
I — Constitutional and Legal Context
The Constitution of the Republic of Iraq places the armed forces under State authority and the law, makes the Prime Minister Commander-in-Chief, grants the Council of Representatives legislative, oversight and budgetary powers, and assigns national security policy to federal jurisdiction. Defence contracting is therefore not a closed technical matter within the military institution, but use of public funds to implement federal security policy that must remain accountable while military secrets are protected.
Public Contracts Implementation Instructions No. (1) of 2025 introduced a new general framework applied from 15 February 2026. The Ministry of Planning is developing the unified electronic platform and standard documents, including a specialized document for armament and security and military equipment and systems contracts. Its existence confirms that military contracting already falls within public procurement, while requiring higher-ranking statutory provisions for matters beyond procedural instructions.
Public funds are also subject to the Federal Board of Supreme Audit's oversight under Law No. (31) of 2011, while the Federal Commission of Integrity exercises its functions under Integrity and Illicit Enrichment Law No. (30) of 2011, as amended. Iraq has been a party to the United Nations Convention against Corruption since accession on 17 March 2008. The Military Industrialization Authority exists under Law No. (25) of 2019, requiring defence procurement to be connected to realistic industrial policy without granting monopoly or exemptions from quality and audit.
II — Legislative Gap and Proposed Policy
General rules on competition, evaluation and guarantees are necessary, but do not alone answer defence-specific questions: who establishes the need before a system is selected? How are twenty-year operating costs calculated? When is a sole supplier genuinely the only source? How is an international government-to-government deal overseen? How are intermediaries and commissions disclosed? What remains secret and what can be published? How does the audit board examine a classified contract? How are post-award variations prevented from becoming a new contract without competition?
The selected legislative policy is a special law supplementing, rather than replacing, the public contracts system. Competition, standard documents and Ministry of Planning instructions remain the default, while the law adds a binding defence layer covering multiyear planning, segregation of duties, whole-life costs, security of supply, single-source procurement, international government-to-government contracts, integrity and intermediaries, classified oversight and contract management through the end of the life cycle.
III — Text of the Bill
In the name of the people
Pursuant to the Constitution of the Republic of Iraq, and to regulate defence procurement and contracts, protect public funds and strengthen integrity, readiness and sovereignty, the following Law has been enacted:
Chapter One — General Provisions
Article (1) — Title and Substantive Scope
This Law shall be called the “Defence Procurement, Contracts and Military Expenditure Integrity Law” and shall constitute special legislation within its scope. It shall apply to planning, purchasing, contracting, financing, implementation, acceptance, maintenance and final disposal concerning defence equipment, systems, materials, services and works. General public contract rules shall remain applicable insofar as consistent with it.
Article (2) — Objectives
The Law aims to link defence expenditure to demonstrated military need; achieve efficiency, value for money and security of supply; prevent corruption, conflicts of interest and illicit commissions; guarantee parliamentary, financial and judicial oversight; protect classified information without converting secrecy into exemption from accountability; and strengthen national maintenance, support and manufacturing capabilities where feasible.
Article (3) — Covered Bodies
This Law shall apply to the Ministry of Defence, federal military formations and any federal body contracting to acquire weapons, ammunition, combat systems, military equipment or classified defence services. It shall apply to other security bodies procuring military materials or systems to the extent determined by the contract's nature, without prejudice to their special governing laws.
Article (4) — Definitions
The following terms shall have the meanings assigned to them: “Defence Procurement”: the defence capability acquisition cycle from identification of need to final disposal. “Defence Contracting Body”: a body covered by Article (3). “Military Equipment”: any weapon, ammunition, platform, system or component designed primarily for military use. “Defence Service”: design, training, maintenance, support, integration or advice directly related to a defence capability. “Classified Contract”: a contract containing information subject to security classification under the law. “Total Life-Cycle Cost”: the combined costs of acquisition, operation, maintenance, training, upgrading and disposal. “Beneficial Owner”: the natural person who actually owns or controls the contractor under applicable laws.
Article (5) — Principles of Defence Contracting
Defence procurement shall be based on legality, military necessity, proportionality between need and cost, competition wherever possible, absence of unjustified discrimination, auditability, segregation of duties, documented decisions, protection of public funds, integrity, information security, supply-chain security, logistical sustainability, and protection of lives and the environment according to the equipment's nature.
Article (6) — Need before Supplier
A defence procurement process shall not begin around a specified product or supplier before approval of a need and capability document identifying the operational gap, alternatives and financial implications. Exceptions may be made where technical compatibility, intellectual property or operational continuity requires, with written justifications subject to review.
Article (7) — National Defence Acquisition Plan
The Ministry of Defence shall prepare a multiyear acquisition plan linked to defence policy, the budget and the medium-term fiscal framework. It shall comprise a public part showing general trends and expenditure by category, and a classified part detailing capabilities, timing, stocks and sources. Both shall be updated annually.
Article (8) — Acquisition Projects Register
A central register of all defence acquisition projects shall assign each a permanent number from identification of need and retain its justifications, decisions, studies, appropriations, contracts, amendments, payments, acceptance results and audits. The register shall be secure, electronic and traceable.
Article (9) — Procurement Classification
Procurement shall be classified as unclassified, sensitive, classified or urgent operational procurement. Security classification shall not affect registration and audit requirements; it shall determine publication scope, authorized access and document-protection procedures.
Article (10) — Secrecy Is Not an Exemption
National security or contractual secrecy shall not justify eliminating competition, audit or disclosure to competent oversight bodies beyond what is necessary. Every withholding of information shall have a specified reason, duration and classification level. Basic financial data and decisions shall remain accessible to appropriately cleared oversight bodies.
Chapter Two — Planning, Need Identification and Cost
Article (11) — Requirements-Setting Body
The competent command or military body shall identify the required operational effect. It shall not alone select a supplier, negotiate prices or manage financial evaluation. Functional separation shall be maintained among the end user, procurement, finance, legal, audit and acceptance functions.
Article (12) — Needs Approval Committee
The contracting body shall form a multidisciplinary committee to approve needs before inclusion in the plan, with representatives of operations, planning, logistics, finance, legal affairs, contracting and technical standardization. No member shall be a supplier, supplier representative or person with a direct or indirect interest.
Article (13) — Alternatives Analysis
According to the project's nature, the needs study shall examine sustainment or upgrade, new acquisition, leasing or managed services where suitable, local manufacturing or assembly, government procurement from a foreign government and commercial procurement. It shall explain rejected alternatives and any decision not to select the lowest-cost option where readiness, sovereignty or security justifies it.
Article (14) — Total Life-Cycle Cost
Bids shall not be compared on initial price alone where operating, maintenance, training, spare-parts, ammunition or upgrade costs are material. A life-cycle costing methodology shall be adopted in advance, with its elements and weights included in contracting documents insofar as sensitive information is not disclosed.
Article (15) — Affordability
No multiyear acquisition project shall be tendered unless the Ministry of Finance or authorized body establishes expected financing capacity and future commitments. A project shall not be fragmented, nor components necessary for operation deferred, to conceal its true cost.
Article (16) — Prohibition of Contract Splitting
Dividing a contract or project into smaller contracts to alter procurement method, approval level or oversight shall be prohibited. Technical division into packages may be permitted if it enhances competition, security of supply or national industrial participation, provided the reason is documented and total value remains unchanged for approval-authority purposes.
Article (17) — Neutral Specifications
Specifications shall be performance- and outcome-based wherever possible. Tailoring them to a particular product shall be prohibited unless a proven technical necessity exists. Where reference to a specific brand or system cannot be avoided, justifications, compatibility requirements and effects on competition shall be stated.
Article (18) — Compatibility and Interoperability
Specifications shall consider compatibility among existing Iraqi systems, communications and data security, availability of ammunition and spare parts, maintenance and training capacity, and avoidance of unnecessary dependence on a single supplier, with due regard to military doctrine and sovereignty.
Article (19) — Cybersecurity and Supply Chain
Contracts for defence digital and electronic systems shall include requirements for cybersecurity, supply-chain integrity, verification of components, updates and software, remote support and record retention. Any hidden connection or function enabling unauthorized control or data transfer shall be prohibited.
Article (20) — Ownership Rights and Technical Data
Project documents shall specify from the outset the State's rights to technical data, software, maintenance manuals, interfaces and tools necessary for sustainment. Intellectual property restrictions making operation or repair impossible without the supplier shall not be accepted unless justified, financially evaluated and disclosed in the award decision.
Article (21) — Security-of-Supply Plan
Critical procurement shall require a security-of-supply plan identifying sources of spare parts, ammunition and consumables; risks of sanctions, discontinued production or conflict; acceptable alternatives; safety stocks; and the State's rights if the supplier fails.
Article (22) — Sustainability and Maintenance
No major system shall be approved without plans for maintenance, training, spare parts, testing infrastructure, stores and an anticipated operating budget. The purchasing decision shall compare local maintenance capability with dependence on external services and their effects on readiness and sovereignty.
Chapter Three — Procurement Methods and Special Cases
Article (23) — Procurement Methods
Competition shall be the default. Open or restricted tendering, competitive negotiation, technical dialogue, framework agreements, single-source procurement, government-to-government contracting or urgent operational procurement may be used under this Law and applicable public contracts instructions.
Article (24) — Open Tendering
Open tendering shall be used for unclassified procurement or where sensitive specifications can be separated. It shall be advertised under general rules with appropriate technical and security qualification requirements. Advertising shall not be withheld merely because the user is a military body.
Article (25) — Restricted Tendering
Invitations may be limited to prequalified suppliers where the goods or services have a narrow market or require security clearances or specialized technical capabilities, provided sufficient competition exists wherever possible and invitees and reasons for selection are documented.
Article (26) — Competitive Negotiation
Competitive negotiation may be used for complex systems whose technical solution cannot be finalized before market dialogue. Uniform negotiation rules shall apply, proceedings shall be recorded, one competitor's information shall not be given to another, and final specifications shall be fixed before final prices are submitted.
Article (27) — Single-Source Procurement
Single-source procurement shall be used only for a demonstrated legal, technical or security reason, such as a genuine sole supplier, exclusive rights, compatibility requirements with no reasonable alternative, or an urgent necessity not caused by the contracting body's failure. The decision shall undergo higher-level review and subsequent audit.
Article (28) — Government-to-Government Contracting
Direct contracting with a foreign government or official government agency may be permitted for security of supply, government pricing, sovereign guarantees, technology transfer or defence integration. The decision memorandum shall compare alternatives and specify pricing mechanisms, funding sources, delivery guarantees and responsibility for intermediaries and subcontractors.
Article (29) — Urgent Operational Procurement
Where military operations or an imminent threat preclude normal time frames, urgent purchasing may be used to the minimum extent necessary to sustain the mission and protect life. The decision shall be recorded immediately, specifying its reason, duration and quantities. Financial, technical and legal review shall occur within no more than thirty days of award.
Article (30) — Prohibition of Manufactured Urgency
Inadequate planning, delayed tendering or expiry of a contract known in advance shall not constitute urgency. If urgency arose from administrative negligence, the urgent need may still be met to protect the mission, while the cause of failure is referred for administrative or oversight investigation.
Chapter Four — Qualification, Integrity and Conflicts of Interest
Article (31) — Prequalification
Suppliers in sensitive procurement shall undergo technical, financial, security and legal qualification proportionate to the contract. Verification shall cover experience, production capacity, quality, cybersecurity, performance history, beneficial ownership, sanctions and debarment, and use of intermediaries.
Article (32) — Beneficial Ownership
Every bidder shall disclose its ownership structure, beneficial owners, persons exercising actual control and changes during the contract. Concealing beneficial ownership or providing misleading information shall constitute grounds for exclusion, termination and referral to competent bodies as appropriate.
Article (33) — Related Companies
Bidders shall disclose parent, subsidiary and sister companies, consortium arrangements and principal subcontractors. Ostensibly competing bids from companies under undisclosed common control affecting independent pricing shall be prohibited.
Article (34) — Intermediaries and Agents
No intermediary, agent or sales adviser shall be accepted in a defence contract unless the supplier discloses their identity, role, remuneration, calculation method and beneficial owner. Commissions linked to securing a sovereign decision or unlawfully influencing a public employee or committee member shall be prohibited.
Article (35) — Commissions and Fees
All commissions, agents' fees and marketing services shall be listed separately in the financial offer. Payments in cash, to accounts not belonging to the disclosed beneficiary, or in countries without a reasonable connection to the contract shall be prohibited without documented justification and enhanced compliance checks.
Article (36) — Conflicts of Interest
Committee members, employees and experts shall disclose in advance and continuously any financial, family or professional interest or material prior relationship with bidders. Anyone with an actual or material potential conflict shall be excluded from the decision. Conflict declarations shall be retained in the contracting file.
Article (37) — Gifts and Hospitality
Defence procurement personnel shall not accept gifts, travel, accommodation, hospitality or services from current or potential suppliers, except token protocol items recorded under conduct rules and not retained by the employee if exceeding the statutory limit.
Article (38) — Movement between Public Office and Suppliers
An employee materially involved in preparing a requirement, evaluation, negotiation or contract management shall not represent or work for the supplier on the same matter for two years after service or participation ends, unless applicable laws prescribe a stricter period. A corresponding restriction shall apply to supplier representatives joining the government body concerning their previous contracts.
Article (39) — Consultants
A consultant who prepared specifications or a feasibility study shall not compete to supply the product for which those specifications were designed or work for a bidder, unless market conditions require otherwise and clear measures preventing unfair advantage are approved by the competent oversight body.
Article (40) — Integrity Declaration
Bidders and contractors shall sign a binding declaration against bribery, collusion, hidden commissions, financing of employees or their relatives, and use of leaked information. They shall grant the State audit access to contract-related records within legal and commercial-confidentiality limits.
Article (41) — Reporting and Protection
The contracting body shall provide a secure channel for reporting defence procurement violations and ensure confidentiality and protection of whistleblowers under applicable laws. Retaliation for good-faith reports shall be prohibited. Suspected corruption shall be referred to the Commission of Integrity and judicial bodies.
Article (42) — Prohibition of Collusion
Where indications arise of price coordination, market division, sham bids or information exchange impairing competition, award shall be suspended to the extent necessary for verification and the facts referred to competent bodies. This shall not prevent meeting an urgent operational need by reasoned decision.
Chapter Five — Evaluation, Award and Challenges
Article (43) — Opening and Evaluation Committees
Bid-opening and evaluation committees shall be formed by written decisions with due regard to expertise and segregation of duties. One person shall not combine preparation of technical specifications, estimated costing, financial evaluation and final approval wherever separation is practicable.
Article (44) — Technical Evaluation
Evaluation criteria and weights shall be announced in advance; no new criterion may be introduced after bids are opened. Performance, reliability, compatibility, safety, training, maintenance, security of supply, warranties, schedule and supplier history shall be assessed according to the project's nature.
Article (45) — Trials and Field Demonstrations
Where a prototype test or field trial is necessary, testing protocols shall be established beforehand and applied equally to comparable alternatives. Raw results and expert reports shall be retained. A supplier's promotional demonstration shall not substitute for verifiable testing.
Article (46) — Financial Evaluation
Financial evaluation shall cover price, total life-cycle cost, payment and financing terms, exchange-rate risks, guarantees and future State commitments. Attractive financing shall not conceal a higher price or a long-term obligation absent from the budget.
Article (47) — Price Reasonableness
Historical databases, lawful international comparisons, spare-parts prices, support contracts and market indicators shall be used to verify price reasonableness, accounting for differences in configuration, quantities, timing, transport, financing and technology terms. Non-comparable reference prices shall not be used.
Article (48) — Price Negotiation
Where negotiation is permitted by law, a negotiating team relatively independent of the requirements team shall be designated. Starting positions, counteroffers, concessions and reasons shall be documented. An unjustified increase shall not be accepted in return for a nominal reduction in another item.
Article (49) — Award Decision
The award decision shall be reasoned, stating technical and financial evaluation results, funding source, implementation risks and exceptions used, and signed by authorized persons according to value and classification. An unclassified summary suitable for publication shall be retained wherever security permits.
Article (50) — Standstill Period and Challenge
A reasonable period shall separate award notification and contract signature in competitive procurement to allow challenges, unless operational urgency exists or notification of a classified contract poses a specific risk. In all cases, a right of challenge before a security-cleared review body shall remain.
Chapter Six — Contract Management, Implementation and Acceptance
Article (51) — Challenges Review Committee
A review committee independent of the evaluation committee shall be formed from legal and contracting experts, with members granted the clearances necessary to inspect classified material. It may suspend signature, request reevaluation or correct procedures without substituting its judgment for lawful military technical assessment.
Article (52) — Contract Contents
The contract shall specify supply scope, specifications, tests, schedules, prices, currencies, payment terms, guarantees, audit rights, security, confidentiality, intellectual property, spare parts, training, upgrades, subcontractors, compensation, termination and dispute resolution.
Article (53) — Advance Payments
An advance payment shall be granted only where needed, with appropriate security, a clear use plan and recovery milestones. It shall be proportionate to the manufacturing process and shall not serve as unsecured supplier financing.
Article (54) — Performance Security
Performance guarantees or alternatives shall be required according to contract nature and risk. In international government-to-government contracts or contracts with a sovereign supplier, equivalent government guarantees may be accepted if enforceable and providing genuine protection for the State.
Article (55) — Milestone Payments
Payments shall be linked to measurable, verifiable stages such as design, production, testing, delivery or acceptance. No stage shall be paid before its conditions are met except under justified exceptional approval and security covering the risks.
Article (56) — Currency and Exchange-Rate Risks
The contract shall specify the currency of the obligation and any mechanism addressing exchange-rate changes. Open-ended or undefined price-adjustment mechanisms shall not be accepted. Effects of external financing, interest, fees and insurance on total cost shall be stated.
Article (57) — Contract Variations
A contract shall not be varied so as to change the substance of competition or convert it into procurement different from the original need. Technical, quantity or timing variations shall be assessed for impact, price, justification and funding. A separable new component shall be retendered where no genuine necessity exists to assign it to the original contractor.
Article (58) — Enhanced Review Threshold for Variations
Where cumulative financial increases from variations exceed fifteen per cent of the original value, or a variation substantially changes specifications or schedule, enhanced review by legal, financial and oversight bodies and a higher approval level shall be required. This shall not constitute automatic authorization for an increase.
Article (59) — Time Extensions
A contract shall be extended only for documented reasons beyond the contractor's control, a lawful government variation, force majeure or a public interest prescribed by law. The decision shall specify effects on cost, readiness, guarantees and penalties and distinguish State-caused from supplier-caused delay.
Article (60) — Penalties and Compensation
Contracts shall contain proportionate provisions for delay, breach and performance failure, considering their defence nature and the inability to replace some systems immediately. Penalties shall not preclude compensation for broader harm where permitted by contract and law.
Article (61) — Inspection and Acceptance
Inspection and acceptance shall be performed, as far as possible, by a committee independent of the negotiating body under protocols known in advance. Physical delivery shall not constitute final acceptance where the contract requires performance, integration or reliability testing.
Article (62) — Non-Conformity
Where material non-conformity appears, the State may reject the supply, demand repair or replacement, reduce the price, recover payments or terminate according to the defect's seriousness. Non-conforming items shall not be accepted merely to spend an appropriation or meet a fiscal-year deadline.
Chapter Seven — National Industry, Security of Supply and Diversion
Article (63) — Warranty and Support
Warranty duration and scope, spare parts, response times, service levels and critical-material stocks shall be specified. The State shall retain the right to test claims, review failure records and calculate operational availability using verifiable indicators.
Article (64) — Training and Knowledge Transfer
Where training forms part of the contract, trainee numbers, curricula, outcomes, tests, language, educational materials and usage rights shall be specified. Knowledge-transfer success shall be measured by actual operating and maintenance capability, not merely the number of courses.
Article (65) — Local Content
Preferences or local-content or technology-transfer requirements may be used where consistent with economic and security interests and without reducing readiness or quality. Local value shall be calculated from documented spending in Iraq and genuine knowledge transfer or production, not agent registration or nominal assembly.
Article (66) — Military Industrialization Authority
Where the product is suitable, the capabilities of the Military Industrialization Authority established by Law No. (25) of 2019 shall be considered. It may participate, or its products be purchased or developed, under the same quality, cost and reliability tests, without unjustified exemption from evaluation or oversight.
Article (67) — Industrial Offset Programmes
Where a contract includes industrial offset, investment or technology-transfer obligations, these shall be separately identified financially and technically, with a baseline, schedule and measurable value. Promotional activities or ordinary purchases shall not count as industrial offsets.
Article (68) — Subcontractors
The supplier shall disclose principal subcontractors, their locations and roles. Material changes shall require contracting-body approval. An opaque contracting chain shall not conceal a commission, origin, beneficial owner or prohibited supplier.
Article (69) — Origin and Traceability
Requirements for origin and tracing of parts, ammunition and sensitive materials shall be specified. Serial-number, shipping, receipt and storage records shall be maintained where appropriate. Enhanced procedures shall prevent counterfeiting, component substitution and non-genuine materials.
Article (70) — End Use and Diversion Prevention
Import, export and re-export contracts for military equipment shall require end-use documents and controls preventing illicit diversion. The competent body shall verify the user, store and transport destination. Equipment shall not be transferred to another party contrary to Iraq's obligations or lawful contract conditions.
Chapter Eight — Secrecy, Oversight and Transparency
Article (71) — International Law
No contract may be concluded whose subject or implementation violates Iraq's international obligations in force or applicable international humanitarian law. New systems and ammunition shall undergo legal review as required by their nature.
Article (72) — Foreign Supplier Risk Assessment
The contracting body shall assess foreign supplier risks concerning legal and financial capacity, international sanctions binding on Iraq, security of supply, data protection, ownership and control, compliance history and possible interruption of support, without adopting prohibitions unsupported by law.
Article (73) — Classified Contracts
A classified contract shall specify access levels, document-handling procedures, work sites, electronic storage, copy destruction and incident reporting. Contractors and subcontractors shall remain bound by these requirements after termination for as long as classification continues.
Article (74) — Oversight Bodies' Right of Access
Classification or commercial secrecy shall not withhold a contract or annexes from the Federal Board of Supreme Audit, Federal Commission of Integrity, judiciary or competent parliamentary committees within their mandates. Access shall occur in a secure environment through authorized persons, with unauthorized publication prevented.
Article (75) — Internal Oversight
Each defence contracting body shall establish a risk-based audit plan covering pre-award stages, implementation, acceptance, payments, variations and sole-supplier contracts. Findings shall be submitted to the head of the body and oversight institutions under the law.
Article (76) — Federal Board of Supreme Audit
Defence funds, contracts and payments, including classified contracts, shall be subject to Federal Board of Supreme Audit oversight under its law. The contracting body shall provide secure access to records, documents and systems necessary for audit.
Article (77) — Federal Commission of Integrity
Facts involving suspected corruption, illicit enrichment, criminal conflicts of interest, forgery, bribery, embezzlement or abuse of office shall be referred to the Federal Commission of Integrity and competent judicial bodies. Administrative contract settlement shall not bar criminal responsibility.
Article (78) — Parliamentary Oversight
The Council of Representatives' security and defence, finance and integrity committees shall exercise oversight within constitutional and legal limits. The Minister of Defence shall submit an annual report, with public and classified parts, on acquisition planning, implementation, deviations, direct contracts, major variations and audits.
Article (79) — Contents of the Public Report
The public report shall include total defence contracting expenditure by broad category, proportions of competitive and single-source procurement, numbers of delayed or troubled contracts, domestic contracting volume and performance and integrity indicators, without disclosing capabilities, locations, quantities or specifications whose disclosure would cause security harm.
Article (80) — Classified Annex for Parliament
To the extent necessary for oversight, the classified annex shall detail major programmes, justifications for single-source procurement, international government-to-government contracts, material financial variations, risks, delays and audit findings. It shall be retained and accessed under a security system approved by the Council of Representatives.
Chapter Nine — Contract Distress, Disputes and Liability
Article (81) — Post-Award Publication
Where security permits, the contracting body shall publish the contractor's name, total value, contract type, implementation period, general subject description and procurement method. A specific item may be withheld if publication reveals a capability, vulnerability, plan or classified information, with the reason recorded.
Article (82) — Review of Secrecy
Withholding and classification decisions shall be reviewed periodically, and information published when the grounds for secrecy cease. Financial and contractual information shall not remain secret indefinitely merely because it was connected with a defence contract when signed.
Article (83) — Digital Records and Signatures
Procurement procedures not barred from digitization shall be managed through secure government systems with indelible audit logs identifying user, time and action. Electronic signatures and trust services shall be used under applicable legislation wherever classification permits.
Article (84) — Record Retention
Defence contract files, decisions, payments and inspection reports shall be retained for at least ten years after final closure, longer where litigation, investigation, warranty obligations or security reasons require.
Article (85) — Supplier Performance Database
A unified internal supplier-performance database shall cover timeliness, quality, failures, warranty, integrity and disputes. It shall inform future qualification without becoming a permanent, unappealable prohibition.
Article (86) — Contract Default and Blacklisting
Where a contractor seriously breaches the contract or fraud or corruption is established, default or blacklisting procedures shall follow general rules and the Ministry of Planning's jurisdiction, with rights of defence and challenge, without preventing urgent measures to protect security or public funds.
Article (87) — Termination in the Public Interest
A contract may be terminated in the public interest if defence needs change or performance becomes impossible or unviable, with fair compensation for accepted work and proven lawful obligations. Unearned future profits shall not be compensated unless the contract and law provide otherwise.
Article (88) — Termination for Corruption
A contract may be rescinded where bribery, illicit commissions, material deception, concealed beneficial ownership or collusion affecting award is established, preserving State rights to compensation, recovery and criminal referral.
Article (89) — Dispute Resolution
Disputes shall first be addressed through a time-limited contractual mechanism. Iraqi courts shall be the default forum. Arbitration may be agreed for international contracts where their nature requires it and after competent legal and financial approvals, protecting State rights concerning information, security and sovereignty.
Article (90) — Governing Law
Iraqi law shall govern by default. If an international transaction requires foreign law for a specified aspect, its effects shall be assessed in a legal memorandum before signature. It shall not extend to matters affecting public policy or State sovereign or oversight powers.
Article (91) — Exemptions and Immunities
No supplier or employee shall receive immunity from Iraqi civil or criminal liability except to the extent required by a treaty in force or special law. Any immunity clause or waiver of jurisdiction shall be assessed before signature at the highest competent legal level.
Chapter Ten — Implementation, Transition and Final Provisions
Article (92) — Foreign Accounts
Payments shall go to accounts in the named contractor's name at regulated financial institutions. Transfers to third parties, escrow accounts or special financing arrangements shall undergo legal, financial and anti-money-laundering examination under applicable laws.
Article (93) — Financing and Export Credit
Where a transaction uses loans, export credit or deferred payment, financing costs, fees, insurance, sovereign guarantees and future commitments shall be shown separately from equipment prices, included in total cost and not treated as free financing.
Article (94) — Barter and Composite Transactions
Concealing procurement value through barter or linking defence purchases to unrelated oil, investment or civilian contracts shall be prohibited unless regulated by law or a sovereign decision with a disclosed basis and full financial and oversight evaluation.
Article (95) — Surplus Stock and Disposal
Sale, transfer or destruction of surplus military equipment shall be subject to inventory, valuation, security and illicit-diversion prevention. The procurement official shall not alone decide final disposal, and disposal shall be separated from acquisition wherever possible.
Article (96) — Safety of Ammunition and Hazardous Materials
Procurement of ammunition and hazardous materials shall include transport, storage, shelf-life, inspection, safe-disposal and defect-liability conditions, with due regard to approved technical standards and protection of personnel, the population and the environment.
Article (97) — Employee Liability
An employee shall not be liable for a professional decision taken in good faith within authority after disclosure of material information. This shall not protect against liability for fraud, bribery, gross negligence, concealed conflicts or intentional violation of this Law.
Article (98) — Administrative Violations
Serious administrative violations shall include splitting contracts to evade rules, undocumented negotiation, concealed conflicts, acceptance of prohibited gifts, obstruction of audit, leaking bid information, unjustified acceptance of non-conforming items and delayed recording of contracts or amendments. Disciplinary penalties shall apply without prejudice to other liability.
Article (99) — Existing Offences
Where conduct constitutes bribery, embezzlement, forgery, disclosure of secrets, harm to public funds, money laundering, terrorism financing or another offence, applicable criminal laws shall apply. This Law creates neither immunity nor a substitute for them.
Article (100) — Recovery of Funds
Contracting, oversight and judicial bodies shall take legal measures to recover undue payments, compensate harm and confiscate or attach proceeds under the law, including corruption involving intermediaries or associated companies.
Article (101) — Recognition of Foreign Measures
Foreign debarment, conviction or settlement decisions may inform risk assessment but shall not produce automatic exclusion except under Iraqi law, after verification and an opportunity for the supplier to state its position, unless an applicable international obligation requires otherwise.
Article (102) — Professional Training
Covered bodies shall establish mandatory continuing training for defence procurement personnel in contracting, law, pricing, project management, integrity, information security and risk management, and identify sensitive functions requiring certification or experience before performance.
Article (103) — Role of the Ministry of Planning
Through its public contracts body, the Ministry of Planning shall align standard documents for arms, military equipment and materials with this Law, provide advice and training, and administer matters within its remit concerning general rules, blacklists and platforms, subject to confidentiality requirements.
Article (104) — Coordination with the Ministry of Finance
The Ministry of Finance, in coordination with the Ministry of Defence, shall establish rules to show multiyear commitments, external financing, advances and guarantees in accounts and the budget, preventing defence obligations outside State financial records.
Article (105) — Coordination with Oversight Bodies
Within six months, the Ministry of Defence, Federal Board of Supreme Audit and Federal Commission of Integrity shall establish a protocol for storing, transferring and examining classified information without limiting any body's statutory powers.
Article (106) — Implementing Instructions
Within one hundred and eighty days of publication, the Council of Ministers, on the proposal of the Ministries of Defence, Planning and Finance and after consulting relevant oversight bodies, shall issue implementing regulations or instructions covering classification, qualification, review, reporting and contract security procedures.
Article (107) — Updating the Military Standard Document
Within one hundred and eighty days of entry into force, the Ministry of Planning shall update the standard document for arms, military equipment and materials, incorporating beneficial ownership, integrity, whole-life cost, security of supply, testing, variations, audit and end-use provisions.
Article (108) — Existing Contracts
Contracts concluded before entry into force shall remain governed by their terms and the rules then applicable. Audit, integrity, record-retention and anti-corruption provisions shall apply insofar as they do not impair established contractual rights. Extensions or material amendments after entry into force shall observe this Law.
Article (109) — Pending Procedures
Tenders advertised or invited before entry into force shall continue under existing procedures. Contracting bodies may apply new safeguards that do not alter competition or bidders' positions. Tenders initiated after entry into force shall be fully governed by this Law.
Article (110) — Relationship with General Instructions
Public Contracts Implementation Instructions No. (1) of 2025 and their replacements, and Ministry of Planning standard documents, shall apply where this Law is silent. In defence procurement conflicts, this Law's special provision shall prevail while preserving general bodies' powers.
Article (111) — No Off-Budget Fund
No armaments fund, special account or financing mechanism outside the Treasury and budget may be created merely to implement this Law. Any defence fund or special financial arrangement requires an independent legislative basis and safeguards for oversight and financial disclosure.
Article (112) — Periodic Review
Every three years, the Council of Ministers shall evaluate implementation, covering competition, direct contracts, contract distress, whole-life costs, local content, audit findings and emerging risks, and send a public summary and classified report to the Council of Representatives.
Article (113) — Removal of Conflicts
Any lower-ranking provision conflicting with this Law shall be repealed or amended to remove the conflict. This shall not be interpreted as repealing the Military Industrialization Authority Law, Integrity and Illicit Enrichment Law, Federal Board of Supreme Audit Law or general public contracting rules.
Article (114) — Entry into Force
This Law shall enter into force ninety days after publication in the Official Gazette. Alignment of registers and documents and training shall begin before entry into force without creating new contractual obligations contrary to it.
IV — Statement of Reasons
To establish an integrated legislative basis for defence procurement linking expenditure to actual military need, whole-life cost and sustainability; ensure competition wherever possible and control single-source procurement, international government-to-government contracts and urgent purchasing; prevent conflicts of interest, hidden commissions, collusion and concealed beneficial ownership; subject classified contracts to financial, integrity, parliamentary and judicial oversight while protecting sensitive information; develop national industry and security of supply according to quality and feasibility; and unify contract life-cycle management from planning through acceptance, maintenance and disposal, this Law has been enacted.
V — Explanatory Memorandum
1. Why a Special Law alongside Public Contracts Instructions?
General Instructions No. (1) of 2025 provide the modern operating framework for government contracting, and the Ministry of Planning has a standard document for arms and military equipment. Contract classification, international government-to-government contracting, security of supply, systems' whole-life costs, classified information and parliamentary oversight, however, generally exceed the scope of standard documents and require a stable legislative foundation not changed by administrative circular.
2. Separating Need from the Purchasing Decision
One of defence acquisition's greatest risks is starting with a known product and shaping the requirement around it. The law reverses this sequence: capability gap first, then alternatives, cost and sustainability, followed by procurement method. This separation improves quality and limits supplier and intermediary influence while needs are being defined.
3. Controlled Secrecy
Protection of operational plans, stocks, sensing and communications capabilities and locations is legitimate and necessary. Financial value, contractor identity, procedural integrity, commissions, payments and variations, however, must be auditable even where they cannot be published. The proposal therefore distinguishes the public's right to disclosure fromthe right of authorized State institutions to access information.
4. Single-Source and Government-to-Government Contracting
The proposal does not prohibit either method because the arms market does not always operate like an open civilian market. It requires a needs memorandum, alternatives comparison, testable pricing and a decision record, and prevents generic references to “secrecy” or a “strategic relationship” from alone justifying elimination of competition or price verification.
5. Whole-Life Cost and the Life Cycle
The cheapest system to buy may be the most expensive to operate because of ammunition, spare parts, training or support contracts. The law therefore requires life-cycle costing for suitable projects and links acquisition to maintenance, financing and operating plans. The aim is not higher spending, but fewer purchases that cannot be kept ready for use.
6. National Industry without Nominal Protection
The proposal recognizes the Military Industrialization Authority Law and the importance of reducing external dependence, but does not make “local” an exemption from testing, price or reliability. Preference is for genuine production, knowledge transfer and maintenance and development capacity, not mere assembly or registration of an agent in Iraq.
7. Integrity and Intermediaries
International defence contracts may use agents, advisers and local representatives for legitimate legal or commercial reasons. Risk arises where their identities, fees or beneficial owners are concealed. The law therefore does not prohibit intermediation itself, but makes disclosure of role, commission and beneficial ownership a contracting condition.
8. Practical Parliamentary Oversight
Parliamentary oversight does not require publishing military specifications. The proposed model is a public report on trends and indicators and a classified parliamentary annex on major programmes, exceptions and variations. Secrecy thus ceases to justify removal of oversight, while oversight does not expose defence capabilities.
VI — Alignment with Existing Legislation and Institutions
| Existing Reference | Relationship to the Bill |
|---|---|
| Constitution of the Republic of Iraq, 2005 | Provides the basis for State authority over the armed forces and public funds, parliamentary oversight and federal powers; the proposal applies these principles to defence contracting. |
| Public Contracts Implementation Instructions No. (1) of 2025 | Remain a general and supplementary reference. The proposal is a special law for defence matters and requires the military standard document to be updated accordingly. |
| Standard Document for Supply of Arms, Military Equipment and Materials — Ministry of Planning | Remains an implementing tool and tender document, updated to incorporate the law's safeguards. |
| Military Industrialization Authority Law No. (25) of 2019 | Not repealed; the proposal connects domestic procurement to the Authority and national industry, subject to quality, cost and security-of-supply tests. |
| Commission of Integrity and Illicit Gain Law No. (30) of 2011, as amended | The Commission retains jurisdiction over suspected corruption; the proposal guarantees secure access to classified files. |
| Federal Board of Supreme Audit Law No. (31) of 2011 | The proposal does not diminish the Board's powers; it expressly requires an audit-access pathway for classified contracts. |
| United Nations Convention against Corruption | Iraq has been a party since 17 March 2008; the Convention supports the proposal's principles of integrity, public procurement, transparency and accountability. |
VII — Transitional Provisions and Implementation Requirements
Within 90 days: Inventory acquisition projects and open classified contracts, designate compliance and central-register officers, and issue disclosure forms for conflicts of interest, beneficial owners and intermediaries.
Within 180 days: Issue implementing instructions, update the military standard document, launch secure-access protocols for oversight bodies and link new contracts to a digital register with an audit trail.
Within One Year: Complete the supplier-performance database, apply whole-life costing to major acquisition projects and submit the first public and classified annual report to the Council of Representatives.
Implementation requires neither a new independent authority nor an off-budget fund. The proposal's institutional approach strengthens specialization in existing bodies, separates duties and connects the Ministry of Defence with Planning, Finance, the audit board, the Integrity Commission and Parliament under secure information-access rules.
VIII — Financial and Implementation Impact
Expected direct financial impact is limited to moderate because it relies on existing institutions and creates no independent federal agency. Costs centre on a secure digital register, training, price and life-cycle analysis tools, facilities and procedures for auditing classified information, and integration of financial and contractual data.
The larger financial effect is expected to be preventive: fewer acquisitions of systems that cannot be operated or maintained; reduced uncontrolled variations, hidden commissions and unjustified direct contracting; and better negotiation of support and spare-parts contracts. No savings figure is stated because current public data do not support a reliable calculation.
IX — Relevant International Comparison
| Standard / Model | Useful element | Reflection in the Proposal |
|---|---|---|
| United Nations Convention against Corruption — Article 9 and Other Provisions | Transparency, competition, objective criteria and oversight in public procurement, with anti-corruption measures. | Disclosure of interests, beneficial ownership and intermediaries; documentation, audit and challenges. |
| European Union — Directive 2009/81/EC on Defence and Security Procurement | Defence-specific procedures preserving competition and controlling information security, security of supply and exceptions. | Restricted tendering, competitive negotiation, classification safeguards, security of supply and reasoned single-source procurement. |
| NATO Building Integrity | Addressing corruption risks throughout the acquisition cycle, not only at signature, with functional separation and risk analysis. | Oversight beginning with the needs and cost document and continuing through evaluation, implementation, variations and acceptance. |
| Arms Trade Treaty ATT — An International Standard Not Currently Binding on Iraq | End use and prevention of illicit diversion in conventional arms trade. | End-use certificates and shipment and diversion tracing incorporated as domestic national-interest safeguards without claiming a treaty obligation. |
X — Compliance and Oversight Indicators
Effectiveness is measured through auditable indicators, notably: the share of contract value competitively procured; the proportion and reasons for single-source contracts; average acquisition-cycle duration; the proportion of programmes using life-cycle costing; post-award variation value as a percentage of original value; on-time delivery rate; non-conformity rate; volume of domestic contracts with genuine industrial content; conflict-of-interest disclosures; suppliers disclosing beneficial owners and intermediaries; challenges and their outcomes; and amounts recovered or corrected following financial audit findings.
These indicators assess expenditure and procedural integrity, not publicly rank military capabilities. The annual report must distinguish publishable indicators from those retained in the classified annex.
XI — Sources and References
- Constitution of the Republic of Iraq — Iraqi Council of Representatives — Official source.
- Ministry of Justice — Iraqi Official Gazette, Issue 4849, 17/11/2025 — Announcement of publication of Public Contracts Implementation Instructions No. (1) of 2025.
- Ministry of Planning — Public Contracts Implementation Instructions No. (1) of 2025 and Supplementary Rules — Official letter and compilation. The Ministry's letter states that application began on 15/2/2026 and the 2014 instructions were repealed upon entry into force.
- Ministry of Planning — Standard Document for Supply of Arms, Military Equipment and Materials — Official document page.
- Ministry of Planning — General Government Contracts Department and Standard Documents — Source.
- Ministry of Justice — Military Industrialization Authority Law No. (25) of 2019 — Iraqi Official Gazette, Issue 4561.
- Ministry of Justice — Integrity and Illicit Enrichment Law No. (30) of 2011, as amended — Official source.
- Ministry of Justice — Federal Board of Supreme Audit Law No. (31) of 2011, as amended — Official source.
- United Nations Treaty Collection — United Nations Convention against Corruption — Iraq's accession on 17/3/2008.
- European Union — Directive 2009/81/EC on defence and security procurement — EUR-Lex.
- NATO — Building Integrity Compendium, Defence Procurement — Source.
- Arms Trade Treaty Secretariat — Treaty Status — Official participation status. Used only to establish Iraq's status, without treating the treaty provisions as binding on it.
Ali Zuweid's Political Programme · POL-28 · 7 October 2026