Direct Award
Direct award, or suorahankinta, allows a contracting authority to procure goods, services, or works from a specific supplier without a competitive tendering process. This is an exceptional procedure that can only be used under strictly defined conditions in the Public Procurement Act.
Definition
Direct award is a procurement procedure where the contracting authority negotiates directly with one or more suppliers without publishing a contract notice or conducting a competitive tender. It is permitted only in narrowly defined circumstances, such as when no suitable tenders were received in a prior procedure, when only one supplier can deliver the goods or services due to technical reasons or exclusive rights, or in cases of extreme urgency. It is governed by Sections 40-41 of the Public Procurement Act (1397/2016).
Practical Example
A municipality's water treatment plant suffers a critical equipment failure. Since only the original manufacturer can provide the replacement parts due to proprietary technology, the municipality uses direct award to procure the parts immediately without a competitive process.
Common Mistake
Contracting authorities sometimes overuse direct award by interpreting urgency too broadly. The urgency must be unforeseeable and not attributable to the authority's own actions. Improper use of direct award can lead to challenges at the Market Court.
Frequently Asked Questions
Can a direct award be challenged?
Yes. A direct award can be challenged at the Market Court within 30 days of the award decision being published. If the authority publishes a voluntary transparency notice in Hilma, the challenge period is 14 days. Without such notice, the contract may be rendered ineffective.
What are the most common grounds for direct award?
The most common grounds include technical exclusivity (only one supplier can provide the solution), extreme urgency caused by unforeseeable events, and situations where no suitable tenders were received in a prior open or restricted procedure.
Related Terms
Open Procedure
Learn how the open procedure works in Finnish public procurement. Any supplier can submit a tender without pre-qualification under hankintalaki 1397/2016.
Contract Notice
Learn about contract notices in Finnish public procurement. The official announcement published on Hilma and TED to invite tenders from suppliers.
Procurement Correction
Understand hankintaoikaisu (procurement correction) in Finnish law. How contracting authorities can self-correct procurement decisions.
Market Court Appeal
Learn about Market Court appeals in Finnish public procurement. How to challenge procurement decisions at markkinaoikeus under hankintalaki.
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