Year 2014

Operations of the central procurement unit

Hansel Ltd is the central procurement unit of the Finnish Government. The objective of Hansel’s operations is to generate savings for the Finnish Government, by putting framework agreements for products and services out to tender. The tasks and roles of the central procurement unit are defined in the Act on Public Contracts, the Act on a Limited Liability Company Called Hansel Oy, and in the State Procurement Strategy. Hansel’s customers consist of ministries, their subordinate departments, and other government agencies.

Hansel’s customers have the opportunity to make acquisitions without separate tendering processes, by joining the framework agreements administered by Hansel. Central procurement implemented under the framework agreements generates considerable savings for the Finnish Government, through both procurement process costs and pricing. In addition to framework agreements, Hansel offers tendering services for its customers.

Through responsibly run operations, Hansel promotes high-quality procurement and the equal, non-discriminatory treatment of suppliers in the tendering process. Hansel’s objective is to promote open competition and organise tendering processes in a manner that fosters efficient market operations. Hansel is a non-profit limited company fully owned by the State of Finland, and operates under the steering of the Ministry of Finance. The company’s operations are mainly funded by service fees collected from suppliers based on realised procurements. The maximum service fee that may be currently charged is 1.5 per cent of the contract value, while the average service fee in 2014 was 1.19 per cent (also 1.19 in 2013).