Hansel
Hansel Ltd (Hansel Oy) is Finland's central purchasing body for the state. It is a state-owned company that establishes framework agreements and provides procurement services for government agencies, universities, and other eligible organisations. Hansel is one of the largest buyers in Finland's public procurement market. Hansel manages framework agreements with a combined annual purchase volume exceeding EUR 900 million, making it the single most significant procurement entity in Finland by aggregated spending. For suppliers, winning a place on a Hansel framework agreement provides access to the entire state administration as a potential customer base. This represents a fundamentally different market access model compared to bidding on individual agency procurements. Hansel's procurement processes are rigorous, with high suitability requirements and intense competition, but the commercial reward of a framework position can be substantial. In recent years, Hansel has also expanded into procurement development services, helping public sector entities improve their procurement capabilities. Understanding how Hansel operates is essential for any supplier serious about the Finnish public sector market.
Definition
Hansel Ltd is a non-profit company wholly owned by the Finnish state, operating as the central purchasing body under Section 20 of the Public Procurement Act (1397/2016), implementing Article 37 of EU Directive 2014/24/EU. Its primary function is to establish framework agreements that government agencies and other eligible organisations can use for their procurement needs. Hansel manages approximately 80 framework agreements covering categories such as IT hardware and software, telecommunications, travel and transportation, vehicles, office supplies and furniture, consulting and professional services, facilities management, and energy. Government agencies are generally obligated to use Hansel's framework agreements when available, based on a Government decision. This obligation applies to state central administration but not to universities or other autonomous entities, which may choose to use Hansel agreements voluntarily. Hansel conducts its procurements following the full requirements of the Procurement Act, typically using open or restricted procedures for EU-level procurements. Framework agreements are usually established for 2-4 years and may include multiple suppliers ranked by price or organized by geographic region or product category. Call-offs from framework agreements follow either direct ordering (from a single-supplier framework) or mini-competitions (from multi-supplier frameworks) under Section 42 of the Procurement Act.
Legal Reference
Public Procurement Act (1397/2016), Section 20; Government decree on Hansel
View on FinlexPractical Example
A Finnish IT company specializing in cloud infrastructure services wants to sell to government agencies. Instead of bidding on dozens of individual agency procurements, the company monitors Hansel's upcoming procurement plan and identifies that the cloud services framework agreement (current agreement covering CPV 72000000-5) is due for renewal. The company prepares for the procurement six months in advance: it ensures its financial statements show the required turnover level, gathers reference documentation from recent projects, obtains necessary security certifications, and pre-drafts responses to common evaluation criteria. When Hansel publishes the procurement on Hilma and TED, the company submits a competitive tender with detailed service descriptions and competitive pricing. After winning a position on the framework, the company receives direct orders and mini-competition invitations from 15 different government agencies over the next three years, generating EUR 2,400,000 in cumulative revenue. Hansel deducts a 1.2% service fee from each payment, totaling EUR 28,800 over the period.
Common Mistake
Suppliers sometimes focus only on direct procurement by individual agencies and miss Hansel's framework agreement opportunities. Winning a Hansel framework can give access to the entire state administration as a customer base, representing a significant market opportunity. The reverse mistake is equally common: suppliers win a framework position but then fail to actively market themselves to individual agencies. A framework position does not guarantee orders. In multi-supplier frameworks, agencies run mini-competitions where suppliers compete again on price and terms. Suppliers must actively respond to mini-competition invitations, maintain competitive pricing, and build relationships with agency procurement contacts. Monitoring Hansel's procurement calendar and planning ahead is essential, as framework renewals happen on a fixed schedule and missing the window means waiting 2-4 years for the next opportunity.
Frequently Asked Questions
Which organisations can use Hansel's framework agreements?
State central government agencies are the primary users and are generally obligated to use Hansel's agreements when available. Universities, government-owned companies, and some other public entities may also be eligible, depending on the specific framework agreement. The scope of eligible users is defined in each framework agreement's procurement documents. Some frameworks are restricted to core government agencies, while others are open to a broader group including universities (under the Universities Act), state research institutes, government-owned special-purpose companies, and the Finnish Parliament. Municipalities and wellbeing services counties are generally not eligible for Hansel frameworks; they can use KL-Kuntahankinnat Oy's framework agreements instead. The estimated number of eligible organisations for a typical Hansel framework is 150-200 entities.
How does a supplier get on a Hansel framework agreement?
Suppliers must participate in and win Hansel's competitive procurement procedures, which are published on Hilma and TED. Framework agreements are typically renewed every 2-4 years, and suppliers should monitor upcoming procurement plans on Hansel's website. Hansel publishes an annual procurement plan listing frameworks due for renewal, providing suppliers with advance notice to prepare. The procurement process follows standard EU procedures: open or restricted procedure, with suitability requirements, ESPD declarations, and award criteria. Competition is typically intense, with 5-20 bidders for most categories. To improve their chances, suppliers should participate in Hansel's market consultations (when offered), ensure they meet all suitability requirements well before the tender deadline, and invest in high-quality tender responses that clearly demonstrate value. Hansel also conducts supplier relationship management sessions with existing framework suppliers.
Does Hansel charge suppliers for being on a framework?
Hansel finances its operations through service fees charged to suppliers on its framework agreements. The fee is typically a small percentage (around 1-1.5%) of the sales made through the framework and is deducted from payments. The exact fee percentage varies by framework agreement category and is specified in the procurement documents and framework contract. Suppliers should factor this fee into their pricing calculations when preparing tenders. For high-volume, low-margin product categories, the fee can have a meaningful impact on profitability. Hansel's total annual service fee revenue is approximately EUR 10-12 million, funding its operations including procurement management, supplier monitoring, compliance activities, and procurement development services. The fee model aligns Hansel's incentives with maximizing usage of the frameworks it establishes. Suppliers do not pay any fee for participating in the procurement process itself; the fee only applies to actual sales generated through the framework.
Related Terms
Framework Agreement
Understand framework agreements in Finnish public procurement. How multi-year agreements with one or more suppliers work under hankintalaki 1397/2016.
Dynamic Purchasing System
Learn about the dynamic purchasing system (DPS) in Finnish public procurement. An open system where new suppliers can join throughout its duration.
Hilma Platform
Learn about Hilma, Finland's official public procurement notice platform. How to find and respond to procurement opportunities on hankintailmoitukset.fi.
Contracting Authority
Understand what a contracting authority is in Finnish public procurement. Types of hankintayksikkö and their obligations under the Procurement Act.
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