Operations of the central procurement unit

Hansel Ltd is a central procurement unit of the Finnish Government. The objective of Hansel Ltd’s operations is to generate savings for the Finnish Government, by putting framework agreements for goods 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. Besides framework agreements, Hansel offers its customers consulting on the tender process and other legal services related to procurement.

Through responsibly run operations, Hansel promotes high quality procurement and the equal, non-discriminatory treatment of suppliers in the tendering process. The Public Procurement Act specifies that Hansel's objective is to promote open competition and to organise tendering processes in a way 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, based on realised procurement and collected from suppliers. Currently, the maximum service fee that may be charged is 1.5 per cent of contract value, while the average service fee in 2013 was 1.19 per cent (1.21 in 2012).