Operations of the joint procurement unit

Hansel Ltd is the joint procurement unit of the Finnish government. The objective of Hansel’s operations is to generate savings for the government by putting joint procurement contracts for goods and services out to tender and by providing its customers with procurement expert services. The tasks and role of the joint procurement unit are defined in the Act on Public Contracts, the Act on a Limited Liability Company Called Hansel Oy and the State Procurement Strategy. Hansel’s customers include ministries, their subordinate departments and certain other government agencies. As of the beginning of 2019, due to an amendment of the Act on a Limited Liability Company Called Hansel Oy, municipalities, parishes and other procurement units from regional administration can also be Hansel’s customers. The amendment enables the merger of Hansel and KL-Kuntahankinnat, which is to be completed in 2019.

Hansel’s customers can make acquisitions without separate tendering processes by using services offered by Hansel. Joint procurement generates considerable savings for the government, through both procurement process costs and pricing.

Through responsibly run operations, the joint procurement unit promotes high-quality procurement and equal, non-discriminatory treatment of suppliers in the tendering process. Hansel’s objective is to also promote open competition and organise tendering processes in a manner that fosters efficient market operations. At present, Hansel is a non-profit limited company fully owned by the State of Finland, and it operates under the steering of the Ministry of Finance. The company’s operations are funded by service fees for joint procurement and sales of expert services. The maximum service fee that may be charged is based on purchases made, and it is 1.50% of the contract value. The average service fee in 2018 was 0.99% (1.04% in 2017).