HE 108/2016 vp – The government has presented its proposal concerning the extensive reform of the Finnish public procurement legislation

The government has finally on 22nd of June 2016 presented the proposal concerning the extensive reform of the Finnish public procurement legislation to the Parliament. The new public procurement act replaces the Act on Public Contracts from 2007 and the Act on electronic auctions and dynamic purchasing system from 2011. At the same time the Act on public contracts of entities operating in the water, energy, transport and postal services sectors is being renewed.

The proposed legislation corresponds to the previews legislation in the terms of the procurement procedures, the scope and the remedies of the legislation. The aim of the proposal is to nationally implement the Directive 2014/24/EU of the European Parliament and of the Council on public procurement, Directive 2014/25/EU of the European Parliament and of the Council on procurement by entities operating in the water, energy, transport and postal services sectors and Directive 2014/23/EU of the European Parliament and of the Council on the award of concession contracts. The accurate and clear rules of the directives have already been applied in Finland since 18th April 2016. The proposal also takes into account the case law of the European Union Court in the area of public procurements.

The proposal aims at modernising and simplifying the legislation as well as making it more flexible. The purpose is to increase the quality of public procurements, facilitating in particular the participation of small and medium-sized enterprises (SMEs) in public procurement, and to enable procurers to make better use of public procurement in support of common societal goals. The proposal also aims at increasing the use of innovations and the innovation partnership. Qualitative aspects, especially in the area of social and health services, are also getting more attention in the future.

The proposal contains suggestions that should simplify the national procedures considerably. The national thresholds are reviewed. The national threshold in supply and service contracts is suggested to rose to 60,000 euros, instead of the current 30,000 euros. The national threshold in the area of social and health services is suggested to rose to 400,000 euros, instead of the current 100,000 euros. The national threshold of 150,000 in the area of work contracts are suggested to remain as currently.

The Finnish Competition and Consumer Authority is suggested to have authority to monitor the compliance of the public procurement legislation. Currently there are no rules concerning the compliance with the public procurement legislation beyond the rules of post remedies.

The proposal can be found on the Parliaments website in Finnish and Swedish at: https://www.eduskunta.fi/FI/tietoaeduskunnasta/kirjasto/aineistot/kotimainen_oikeus/LATI/Sivut/hankintalain-kokonaisuudistus.aspx

 

We will be following the reform through the summer and fall, especially when the committees are handling the proposal.