National Threshold
National thresholds (kansalliset kynnysarvot) are the minimum contract values above which the Finnish Public Procurement Act applies. Procurements below these thresholds are not subject to the Act and can be conducted according to the contracting authority's own internal rules. For suppliers, national thresholds define the boundary between regulated and unregulated procurement markets. Above the threshold, contracting authorities must follow transparent procedures, publish notices, and allow open competition. Below it, purchasing decisions can be informal and may rely on existing supplier relationships. This distinction matters strategically: the below-threshold market is substantial in Finland (estimated at several billion euros annually), but accessing it requires direct relationships with contracting authorities rather than monitoring published notices. National thresholds also determine the minimum procedural requirements. Between the national and EU thresholds, simplified national procedures apply, offering contracting authorities more flexibility in timelines and process design while still ensuring basic transparency and competition.
Definition
National thresholds are the lower value limits that determine whether a procurement falls within the scope of the Finnish Public Procurement Act. The thresholds are: EUR 60,000 for supply and service contracts, EUR 150,000 for works contracts, EUR 400,000 for social and other specific services (Annex E services), and EUR 500,000 for concession contracts. Procurements between the national threshold and the EU threshold follow simplified national procedures under Part III (Sections 100-111) of the Procurement Act. Procurements below the national threshold are exempt from the Act entirely. They are defined in Section 25 of the Public Procurement Act (1397/2016). The national threshold values were set when the current Procurement Act entered into force on January 1, 2017, and have not been revised since. They are not automatically adjusted for inflation, and any change requires a legislative amendment. The simplified national procedures applicable between the national and EU thresholds offer contracting authorities significant flexibility: they can set their own minimum time limits for tender submission, use simplified notice formats, and apply less formal evaluation processes. However, they must still comply with the general principles of transparency, non-discrimination, and proportionality under Section 3. The national procedures also include their own rules on contract modifications and legal remedies, though appeals still go to the Market Court.
Practical Example
A mid-sized Finnish municipality needs to procure office supplies (CPV 30190000-7) for a one-year period. The estimated value is EUR 45,000. Since this falls below the national threshold of EUR 60,000 for supply contracts, the Public Procurement Act does not apply. The municipality follows its internal purchasing guidelines, which require obtaining at least three written quotes for purchases above EUR 20,000. The purchasing officer contacts three office supply companies and selects the most competitive offer. No Hilma publication is required. A different scenario: the same municipality procures the same supplies but estimates a two-year contract value of EUR 90,000. This exceeds the national threshold, so the municipality must publish on Hilma and follow simplified national procedures, including publishing a contract notice and allowing adequate time for tender submission.
Common Mistake
Suppliers sometimes overlook procurements below the national threshold, assuming they are not available. While these procurements are not published on Hilma, many contracting authorities voluntarily publish them or send invitations to potential suppliers. Missing this market segment means ignoring a significant portion of public purchasing. Smart suppliers actively build relationships with contracting authorities, register in vendor databases, and monitor municipal and agency websites for small procurement announcements. Another common mistake is for contracting authorities to miscalculate the estimated value and use below-threshold procedures for procurements that actually exceed the threshold. Suppliers who suspect this can raise the issue with the contracting authority or file a complaint with the Market Court.
Frequently Asked Questions
Are procurements below the national threshold completely unregulated?
While the Public Procurement Act does not apply, contracting authorities must still follow the general principles of EU law, including non-discrimination, transparency, and proportionality, especially for procurements with cross-border interest. Most authorities also have internal procurement guidelines. Municipal procurement guidelines typically require competitive quotation processes for purchases above EUR 10,000-30,000 (the exact limit varies by municipality). State agencies follow Ministry of Finance guidelines for small procurements. The Administrative Procedure Act (434/2003) also applies, requiring impartiality and proper documentation in all public decision-making. Suppliers who believe they were unfairly excluded from a below-threshold procurement can seek remedies through administrative complaint procedures, though the Market Court route is not available.
What is the difference between national and EU thresholds?
National thresholds determine whether the Finnish Procurement Act applies at all. EU thresholds determine whether the full EU-wide procurement rules apply. Between the two thresholds, simplified national procedures apply. Above the EU threshold, the full EU procedures (including TED publication and ESPD) are required. For example, a service contract worth EUR 150,000 exceeds the national threshold (EUR 60,000) but falls below the EU threshold for sub-central authorities (EUR 221,000). This procurement follows simplified national procedures: published on Hilma but not TED, shorter timelines, no mandatory ESPD, and more flexible procedural rules. The same contract worth EUR 250,000 would trigger full EU procedures with mandatory TED publication, ESPD, minimum 30-day tender period, and mandatory standstill period.
Can the national threshold values change?
Yes, but only through a legislative amendment to the Public Procurement Act. Unlike EU thresholds, which are automatically revised every two years by the European Commission, Finnish national thresholds are fixed in Section 25 of the Act and require a parliamentary process to change. The current values have been in effect since January 1, 2017. There have been periodic discussions about raising the thresholds to reduce administrative burden for small procurements, but no amendments have been enacted as of early 2026. Any change would need to balance reducing bureaucracy against ensuring transparency and competition in public spending. Suppliers should monitor legislative developments through the Ministry of Finance and Parliament committee reports for potential future changes.
Related Terms
EU Threshold
Learn about EU procurement thresholds in Finnish public procurement. The value limits above which EU-wide tendering rules apply under hankintalaki.
Estimated Value
Understand how estimated value is calculated in Finnish public procurement. Rules for determining contract value under hankintalaki 1397/2016.
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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