Procurement procedures in central government

Public procurement amounts to an annual total of around EUR 22.5 billion, the equivalent of about 15% of GDP. Of this, central government acquisitions total roughly EUR 4.5 billion per annum, EUR 3.2 billion of which consists of goods and services procurement.

As a rule, all acquisitions in central government units are subject to competitive bidding. Finnish legislation on competitive tendering draws on European Community Directives 2004/18/EC and 2004/17/EC on procurement procedures and on the World Trade Organization’s agreement on public procurement. The purpose of these provisions is to allow open competition, equal and non-discriminatory treatment of tenderers and prudent use of government resources.

The Ministry of Finance is responsible for the overall steering and development of government procurement procedures.

The Ministry of Employment and the Economy is in charge of drafting legislation on public procurement.

Joint procurement in central government

Joint competitive procurement in government is governed by a new paragraph 22a in the Budget Act (447/2006), entering into force on 1 September 2006. The Government Decree on Joint Procurement in Central Government (765/2006), which makes the legal provisions more specific, came into force on 8 September 2006. The above provisions make it possible to apply competitive bidding in a centralized manner in central government for procurement in ordinary goods and services and in widely used IT hardware, software and joint IT systems. Goods and services procured through joint competitive bidding are specified in the Ministry of Finance Decision on Joint Procurement in Central Government (766/2006, amended 594/2008).

The Ministry of Finance’s decision to introduce centralized competitive tendering is binding for the procurement units in central government. The decision specifies which goods and services in central government are purchased in a centralized manner using contracts awarded through open competition and by appointing a central procurement unit responsible for the tendering.

Objectives in central government procurement procedures

Procurement procedures in central government agencies must form a fully coordinated entity and be implemented with a view to proper planning, efficiency and good quality. Procurement procedures must endeavour to use public resources efficiently and carry out public procurement in the spirit of the law. The managerial bodies of the government agencies are responsible for the adoption of procurement procedures and the legality of the activities.

Government agencies must strive to organize their procurement as economically as possible. Government agencies are invited to take advantage of government framework agreements awarded on the basis of centralized tendering and to use the procurement expertise of organizations that assist in procurement procedures.

Organizations assisting in government procurement procedures

Hansel Ltd, which functions as a central procurement unit, carries out centralized competitive bidding for government acquisitions of goods and services. More information on procurement agreements contracted through open competition is available on Hansel Ltd web pages.

Senate Properties operates as a procurement expert in government facilities management.

Printable version