FINNISH PUBLIC PROCUREMENT PROCESS - WITH FOCUS ON IT

italiansaucySoftware and s/w Development

Dec 13, 2013 (3 years and 6 months ago)

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18.10.2011

1

November 2013

1

Gothenburg

Copenhagen

Malm
ö

Moscow

Warsaw

Riga

Helsinki

Minsk

Tallinn

Oslo

Stockholm

Berlin

Kaunas

Vilnius

Kiev

FINNISH PUBLIC PROCUREMENT PROCESS

-

WITH FOCUS ON IT


Juha Taipale,
Partner
, Magnusson Helsinki

18.10.2011

2

November 2013

2

The Baltic Sea Region Law Firm

PUBLIC PROCUREMENT IN FINLAND


Public
Procurement

in Finland 2011 (
department

of
statistics
)


10.933
procurement

notices

by

municipalities


1.613
by

governmental

organizations


6.214
by

other

entities

subject

to
public

procurement

legislation


Slight

decrease

in
these

numbers

during

2012


Annual

volumes

of
purchases

through

public

procurement

processes


17,36
billion



for
municipalities


About

1
billion



of ICT


The

entities

subject

to
public

procurement

legislation

are

numerous
, as
public

organizations

carry

on a
broad

scope

of
operations


Health
care

sector


Power and
electricity

and
utilities


Harbours

and
railroads


Hilma


database

for
public

procurement

notices


18.10.2011

3

November 2013

3

The Baltic Sea Region Law Firm

PROCESS ALTERNATIVES


Open procedure

means those procedures whereby any interested
tenderer may submit a tender


Negotiated procedure

means those procedures whereby the contracting
authorities consult the economic operators of their choosing and negotiate
the terms of contract with one or more of these


Competitive dialogue

is a new procedure for awarding contracts. It is
suitable for particularly complex procurements where the unit finds it
objectively impossible to define the legal or financial terms of the contract,
or the technical means beforehand, without negotiations with the tenderers


Framework agreement

is a procedure leading to the reaching of an
agreement between procuring entity and three or more suppliers. As a
main rule, the duration of the framework agreement may not exceed four
years


Direct assignment

is only used in exceptional circumstances



18.10.2011

4

November 2013

4

The Baltic Sea Region Law Firm

SELECTION CRITERIA


Minimum requirement



assessed
only as pass or
fail


Comparison
requirement



for
the assessment of the most economically advantageous tenders


must
be linked to the contract target


Must enable
the impartial assessment of tenders.


Cannot
act in
favour

of a certain tenderer, product or region.


Must
be sufficiently
defined


The final selection criteria is public and all tenders are available for the
participants, upon request.


There are no clear rules on how the “grading” must be done, but it should
be clear


Often an unclear grading system results in the cancellation of the entire
procurement process!



18.10.2011

5

November 2013

5

The Baltic Sea Region Law Firm

TYPICAL PROBLEMS


Still
lack

of know
-
how and
skills

on
both

sides

of
the

process


Evaluation of
bids

should

not

be

subjective



but

it is
difficult

to
avoid

being

subjective
,
especially

in ICT
sector


Major
public

procurement

projects

can

be

matters

of life and
death

for
companies
,
which

increase

the

threshold

of
lodging

appeals


Number

of
appeals

has

increased

steadily
,
but

still

only

about

20
appeals

annually

that

relate

to
the

ICT,
half

of
them

for
over

one

million


.


Rejected

13


Considered

compensation

payment

in 4


Reversed

7


Not

reviewed

2


There

are

very

likely

at
least

as
many

situations

where

the

error

has

been

clear

but

for
relationship

reasons

no
appeal

has

been

lodged
!


18.10.2011

6

November 2013

6

The Baltic Sea Region Law Firm

NATURE OF THE APPEALS


Most

of
the

appeals

relate

to
the

compliance

with

rules

and
formalities
,
not

directly

to
any

abuse

of
the

rules

or

favoring

of a
bidder


Typical

Errors
:


Unclarity

of
the

request

for
bids


Non
-
compliance

with

the

request


Comparison

errors


Use

of
negotiation

process


Exceptionally

low

price


Errors

with

notifications


Handling

of
support

and
maintenance

issues

and
comparing

them


Evaluation of
expertise

and
experience


Extremely

difficult

to
create

absolute

criteria

for ICT
services

and
therefore

there

remains

always

room

for
appeals

18.10.2011

7

November 2013

7

The Baltic Sea Region Law Firm

RECENT STORIES


National ICT
project

for
helthcare

ICT (
KanTa
)


Electronic
prescription


Nationwide
patient

archive


Consent

control

system


Self

review

portal

for
clients


Framework
that

connects

the

local

systems


Overall

incurred

cost

between

2003 and 2012
over

200
million




”Apotti”


project

in Helsinki
Region


Actual

health

care

system

for
the

region


Claims

of
certain

suppliers

having

been

favored


Costs

have

increased

and
schedules

missed


Still
not

sure
when

this

would

be

functional


Ticketing

system

for
the

national

railroads

(
Valtionrautatiet
)


Expensive

system

was

launched

but

did

not

work

for
some

weeks

resulting

in
huge

amount

of
public

negative

attention

to
the

public

procurement

processes


18.10.2011

8

November 2013

8

The Baltic Sea Region Law Firm

OUR RECENT CASES


Copying

services


Pricing

different

work

categories


Crane

Modernization



included

in
price



Rubberboats

for
the

navy


Compliance

with

the

request


ICT Services


Transition

project

pricing

for
the

existing

supplier


18.10.2011

9

November 2013

9

The Baltic Sea Region Law Firm

FOREIGN BIDDER



Possible

limitations


Language,
you

may

need

a
local

partner


Location

of data
within

Finland
only



a
growing

trend


Travel
may

present

a
cost
,
unless

remote

work

is
possible


Opportunities

for a
foreign

bidder


Seek

cooperation

with

Finnish

primary

bidders



learn

the

market!


Link

to
the

entities

that

have

existing

long
term

Frame

Agreements
,
especially

in
the

area

of software
coding

work

and general ICT
consulting

services


Seek

such

bids

where

the

price

is
the

determining

factor

-

if

the

price
/
quality

ratio

is
right
,
the

bids

can

be

very

competitive

and
get

you

started
.


To
remember


Make sure
that

you

clearly

meet

all

the

qualifications

and
respond

to
each

and
every

detailed

requirement



no
errors

in
formalities


There

are

advisors

and
consultants

that

can

help and
link

you

to
partners
.


All

of
the

above

apply

quite

well

to
every

other

industries

as
well


18.10.2011

10

November 2013

10

The Baltic Sea Region Law Firm

THANK YOU!

Juha Taipale,
Partner

juha.taipale@magnussonlaw.com

+358 45 635 2585

18.10.2011

11

November 2013

11

MAGNUSSON HELSINKI ATTORNEYS
-
AT
-
LAW LTD.

ALEKSANTERINKATU

15 B
, 00100 HELSINKI, FINLAND

HELSINKI
@MAGNUSSONLAW.COM
,

WWW.MAGNUSSONLAW.COM


BALTIC SEA REGION LAWFIRM

The Baltic Sea Region Law Firm