Contracting Authority
A contracting authority (hankintayksikkö) is a public body or entity that is required to follow the Finnish Public Procurement Act when purchasing goods, services, or works. Understanding which entities are contracting authorities helps bidders identify potential customers and understand their legal obligations.
Definition
A contracting authority is an entity subject to the procurement rules of the Finnish Public Procurement Act. This includes the state and its agencies, municipalities and joint municipal authorities, the Evangelical Lutheran Church and the Orthodox Church and their parishes, publicly funded bodies governed by public law, and any entity receiving majority public funding or subject to public management control for a specific procurement. Central purchasing bodies like Hansel are also contracting authorities. The definition follows EU Directive 2014/24/EU and is set out in Section 5 of the Public Procurement Act (1397/2016).
Practical Example
A supplier wants to know whether a government-owned company that provides IT services must follow procurement rules. Since the company is majority-owned by the state and established to serve the general interest, it qualifies as a contracting authority and must follow the Procurement Act for its own purchases.
Common Mistake
Suppliers sometimes assume that only government ministries and municipalities are contracting authorities. In reality, many publicly controlled entities, foundations, and companies are also subject to procurement rules, creating additional business opportunities.
Frequently Asked Questions
Are state-owned companies always contracting authorities?
Not always. A state-owned company is a contracting authority only if it is established for the specific purpose of meeting needs in the general interest (not industrial or commercial in character) and meets the public funding, management, or supervisory board criteria. Commercially operating state-owned companies may be exempt.
What is a central purchasing body?
A central purchasing body is a contracting authority that acquires goods, services, or works on behalf of other contracting authorities, either by acting as a wholesaler or by conducting procurement procedures and awarding contracts on their behalf. Hansel Ltd is Finland's main central purchasing body for the state.
Related Terms
Contract Notice
Learn about contract notices in Finnish public procurement. The official announcement published on Hilma and TED to invite tenders from suppliers.
Hilma Platform
Learn about Hilma, Finland's official public procurement notice platform. How to find and respond to procurement opportunities on hankintailmoitukset.fi.
Market Court
Learn about the Market Court (markkinaoikeus), Finland's specialised court for public procurement disputes. How it works and what it can decide.
Hansel
Learn about Hansel Ltd, Finland's central purchasing body for government procurement. How joint procurement and framework agreements work.
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