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 government by putting central procurement contracts for goods and services out to tender and by providing its customers with procurement expert services. The tasks and role of the central 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 consist of ministries, their subordinate departments, and certain other government agencies.

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

Through responsibly run operations, the central 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.

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 central procurement and sales of expert services. The maximum service fee that may be charged is based on purchases made, and it is 1.5% of contract value. The average service fee in 2017 was 1.04% (1.06% in 2016).