Review by the CEO

Experiences of public procurement

2025 was another year of growth for Hansel. Although the challenging situation in the public finances reduced the total procurement volume and put significant cost-cutting pressure on customers, the use of our joint procurement increased by more than EUR 70 million to EUR 1,788 million. The use of our specialist services – the tendering service and the procurement development service – also grew strongly.

However, growth is not an inherent value for the central purchasing body. Our task is to tender and maintain high-quality and cost-effective joint procurement that generates savings for our customers. In 2025, we carried out a savings calculation based on the Danish central purchasing body’s model, according to which the use of Hansel’s joint procurement procedures generated savings of 15.8% on average for our customers. The results are well in line with previous surveys. We will discuss the savings calculations in more detail in this annual report’s article Saving calculations highlight the advantages of joint procurement.

Three observations on public procurement

Public debate on public procurement is sometimes active, and unfortunately, mostly negative experiences emerge. I have been working with public procurement since the 1990s, and here are a few of my own observations:

1. The procurement legislation is good

The principles of procurement legislation, increasing competition and transparency and equal treatment of candidates,have brought significant savings to the public administration for decades. Even though individual problems often arise, the system works well as a whole and creates a stable basis for efficient procurement.

2. Procurement legislation is too cumbersome

However, legislation that has proven to be good has expanded over the years, and over-regulation has emerged. Procurement legislation should be replaced by clear rules of procedure that guide how to procure, not what is procured. By complying with the basic principles of the law, high-quality tendering can be carried out without unnecessary bureaucracy.

3, Complaint processing times are too long

The processing of complaints concerning procurement before the Market Court and the Supreme Administrative Court often takes unreasonably long – at worst, years. This delays procurement and causes significant additional costs. To minimise the risk of complaints, the contracting entities aim to make tendering procedures as simple as possible, which reduces innovation and the effectiveness of procurement. Finland is known for the best public administration in the world, and the same level should also be aimed for in terms of the duration of legal proceedings.

Thank you and future prospects

I have been the Managing Director of Hansel for twenty years. The position has offered a unique view of both public administration and business. I will retire at the beginning of June, and Vesa Haapamäki, an experienced leader and strong expert in public procurement, will take over as the new Managing Director. I wish Hansel every success under the leadership of Vesa, and would also like to thank our customers, contractual suppliers and Hansel’s skilled personnel for the good cooperation over the years!

 

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