Capacity provider
A capacity provider (voimavarayksikkö) is a concept introduced into the Finnish Public Procurement Act by the 2026 reform. It means an entity separate from the candidate or bidder whose resources the bidder uses to meet the suitability requirements set by the contracting authority. In practice it covers a situation familiar especially to SMEs and consortia: a bidder's own turnover, solvency, references or staff qualifications are not enough on their own to meet a competition's requirements, so the bidder relies on the resources of another company. A capacity provider can be, for example, a parent company, a group company, a partner or a subcontractor. Previously the law spoke of 'the resources of other entities'; the reform gives the phenomenon a precise definition, which clarifies its use and the related document requirements. Bidders should know the concept, because a capacity provider allows even a small company to take part in a competition whose suitability requirements would exceed its own resources.
Definition
A capacity provider is defined in Section 4, point 33 of the Finnish Public Procurement Act (1397/2016). It is an entity separate from the candidate or bidder whose resources the candidate or bidder uses to meet the requirements set by the contracting authority concerning economic and financial standing (Section 85) or technical capacity and professional ability (Section 86). The use of a capacity provider is further governed by Section 92: a bidder may use the resources of other entities regardless of the legal nature of the relationship between them. A consortium may also rely on the resources of other entities. An essential limitation concerns staff qualifications and experience: if the capacity provider's resources relate to staff qualifications, that entity must also actually perform the works or services for which the qualifications are needed. The bidder must show the contracting authority that the requirements are met – in practice, for example, through the capacity provider's commitment and its own ESPD form. The authority may also check whether the capacity provider is subject to any exclusion ground.
Practical Example
A consulting firm employing five people wants to bid for a municipality's construction-management consultancy tender. The call for tenders requires a minimum turnover of EUR 500,000 and three comparable references from the past three years. The firm's own turnover and references are not enough. It agrees with its parent company that the parent will act as a capacity provider for economic standing, and with a partner firm that the partner will contribute two references and take part in delivering the project. The tender includes the capacity providers' commitments and their ESPD forms. Because the partner's resource relates to staff qualifications and experience, the partner also actually takes part in performing the work, as the law requires. In this way even a small company meets the suitability requirements and can take part in the competition.
Common Mistake
The most common mistake is to assume that a capacity provider's resources can be relied on with a mere mention, without a binding arrangement. The contracting authority requires evidence that the resources are genuinely available to the bidder for the whole contract period – typically a commitment signed by the capacity provider. A second mistake concerns staff qualifications: references or the experience of key personnel cannot be borrowed from a capacity provider that does not actually take part in performing the work. If, for example, a partner's qualified project manager is used to demonstrate suitability, that person must also work on the project. A third mistake is to forget that a capacity provider is subject to the same exclusion grounds as the bidder: if a mandatory exclusion ground applies to the capacity provider, it can sink the whole tender unless the entity is replaced.
Frequently Asked Questions
What is a capacity provider?
A capacity provider (voimavarayksikkö) is an entity separate from the bidder whose economic, financial or technical resources the bidder uses to meet the suitability requirements set by the contracting authority. The concept entered the Finnish Public Procurement Act in the 2026 reform (Section 4, point 33). A capacity provider can be, for example, a parent company, a partner or a subcontractor.
Can a bidder use another company's references?
Yes, through a capacity provider. A bidder may meet the suitability requirements using another entity's resources, regardless of the legal nature of the relationship (Section 92). However, if the resources relate to staff qualifications and experience, that capacity provider must also actually perform the works or services for which the qualifications are needed.
What documents does using a capacity provider require?
The bidder must show the contracting authority that the resources are available to it. In practice this means a commitment by the capacity provider to make the resources available, and the capacity provider's own ESPD form. The authority may check the capacity provider's exclusion grounds, and if a mandatory ground applies, the entity must be replaced with another.
Related Guides
Finnish Procurement Act Reform 2026: What Changes for Bidders
What the new Finnish Procurement Act of 18 June 2026 means for companies and bidders: dividing contracts into lots, the single-bid rule, in-house entities and exclusion grounds, with section references and transitional periods.
Read guideBidder readiness: certificates, qualifications, and compliance
Suitability under Finnish Procurement Act §83: tax certificates, insurance, certifications, and references prepared before the tender drops. Bidder checklist.
Read guideESPD form for bidders: a step-by-step guide
ESPD form completed step by step: exclusion grounds, suitability declarations, and the errors that cause bid rejection. Essential for EU-threshold tenders.
Read guideRelated Terms
ESPD Form
Understand the European Single Procurement Document (ESPD) used in Finnish public procurement. A self-declaration form for qualification and exclusion.
Suitability Requirement
Understand suitability requirements (soveltuvuusvaatimukset) in Finnish public procurement. Minimum qualifications bidders must meet to participate.
Reference Requirement
Learn about reference requirements in Finnish public procurement. How past project references are used as suitability criteria under hankintalaki.
Exclusion Ground
Understand exclusion grounds in Finnish public procurement. Mandatory and discretionary reasons for excluding a bidder from a procurement procedure.
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