Hansel – central contracting authority for the public administration
Hansel is a non-profit limited liability company that aims to generate savings for public administration through efficient procurement operations. Hansel’s customers include ministries and their subordinate departments, municipalities, joint municipal authorities, wellbeing services counties, Keva, parishes, and all public law bodies governed by the state or a municipality.
Hansel’s owners are the State of Finland (65%) and the Association of Finnish Municipalities (35%). The company’s role and duties as a central contracting authority are specified in the legislation on public procurement, the Act on a Limited Liability Company Called Hansel Oy and the National Public Procurement Strategy. The Ministry of Finance is responsible for ownership steering on behalf of the State.
Hansel finances its operations through service fees for central procurement and the sales of expert services. The service fees are based on purchases made by the customers. The maximum fee is 1.50% of the contract value. The average service fee in 2023 was 0.85% (0.83% in 2022).
In 2023, Hansel’s own procurement totalled EUR 5.6 million. Hansel’s joint procurement is used whenever possible. If a suitable framework agreement or dynamic purchasing system is not available, the procurement is carried out in accordance with the company’s processes.
Tax footprint
Organisation
Hansel’s organisation consists of its 132 specialists. The Board of Directors is appointed by the annual general meeting and was chaired until 17 April 2023 by Anna-Maija Karjalainen, followed by Antti Neimala. The Board has four other members: Deputy Managing Director Hanna Tainio from the Association of Finnish Municipalities (vice chair), head of procurement Antti Laakso from Aalto University, Mayor Johanna Luukkonen from the City of Hyvinkää and Director General Antti Koivula from the Finnish Institute for Occupational Health. Minna Isoherranen has also attended the Board meetings as an employee representative. The employee representative has the right to be present and speak at the meetings. Members of the Board cannot be members of the company’s operational management.
The Board of Directors appoints the Executive Committee based on the Managing Director’s proposal. At the end of 2023, the Executive Committee consisted of six persons: the Managing Director Anssi Pihkala (b. 1963), Kirsi Koivusaari Chief Financial Officer (b. 1966), Eija Kontuniemi, Head of Legal Affairs (b. 1966), Maritta Mäkelä, Account Manager (b. 1965), Susanna Närvänen, Chief Category Officer (b. 1963), and Mikko Saavalainen, Director of Digital Business (b. 1979).
The Board members and the Executive Committee are appointed in accordance with the Government’s ownership steering principles, which are used to ensure matters such as equality. The Limited Liability Companies Act and Hansel’s articles of association are followed in decision-making. The company’s office is at Postitalo in Helsinki. Hansel has no international operations.
Hansel’s association memberships
- Confederation of Finnish Industries EK
- Finnish Business & Society (FIBS)
- Helsinki Region Chamber of Commerce
- Association of Public Procurement
- Service Sector Employers Palta
- Finnish Association of Communications Professionals (ProCom)
- Institute of Internal Auditors Finland
- Finnish Business Travel Association FBTA
- Suomen Markkinointiliitto ry
- Finnish Association of Purchasing and Logistics (LOGY)
Business operations
Hansel’s business is divided into three areas: joint procurement, tendering services and procurement development services. The joint contracting entity promotes profitable public administration, high-quality public procurement and equal, non-discriminatory treatment of suppliers. Hansel’s objective is to organise tendering procedures in a manner that fosters efficient market operations and promotes competition.
Risks related to the company’s business are assessed with an external expert at regular intervals. A risk assessment and related measures are presented to the Board of Directors approximately every six months.
Hansel business areas
Joint procurement
Joint procurement refers to framework agreements and dynamic purchasing systems through which Hansel’s customers can purchase products and services. Joint procurement contracts establish the general terms governing procurement such as the object of procurement, prices, and the responsibilities and obligations of the contracting parties. By using Hansel’s agreements, customers can ensure that their procurement processes are compliant with the law, that the contractual terms secure their position, and that the management of contracts and suppliers is facilitated. During joint procurement, Hansel verifies the eligibility of suppliers. In addition, Hansel monitors whether the suppliers meet their contractual, social and solvency obligations during the contract period.
Savings are generated when sufficiently large volumes of products and services are simultaneously put out to tender, and the requirements of as many customers as possible are met. Joint procurement generates considerable savings for the public administration through both procurement pricing and process costs.
Tendering services
Tendering services are needed when a joint procurement contract for a particular object is not available. Hansel’s tendering consultants and lawyers have specific experience and knowledge of public procurement, competitive tendering and contract law. By using our services, customers can ensure that their procurement procedure is handled in accordance with the valid rules, with the best contractual terms possible, and by considering price, quality and sustainability aspects. This frees up the customer’s time for other duties, reduces the contracting entity’s risks and promotes the distribution of best practices.
Development of procurement
Our development service aims to boost the effectiveness of our customers’ procurement operations and improve their profitability. Development managers play the main role in client assignments, but Hansel’s entire expertise is available. The development service can involve a specific problem in the customer’s procurement operations, or the service can consist of a comprehensive analysis of procurement control, the procurement organisation or the implementation of procurement processes, change management or personnel training. The content of a development assignment is always customised on a case-by-case basis in accordance with the customer’s wishes, and the assignment is realised in close cooperation with the customer.
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