Updates on the Finnish National Public Procurement Data Repository Initiative

The Finnish National Public Procurement Data Repository Initiative (FI: Kansallinen Julkisten Hankintojen Tietovaranto) is an ongoing initiative led by the Finnish Government and Hankinta-Suomi , and it is focused on establishing a comprehensive, structured database for public procurement information in Finland. Currently in the preliminary research phase, the project aims to define a national framework for data collection and utilisation in public procurement. By assessing the structural and legal requirements for such a repository, this initiative seeks to outline the best approach to creating a system that would consolidate and make accessible detailed data on public sector purchasing.

Objectives of the Initiative

The government sees this data repository as key to achieving significant cost savings in public service production, ultimately ensuring high-quality services for citizens. Approximately €50 billion is allocated annually to public procurements, with a substantial portion going toward services procured from private companies. However, competition within this space is limited: in up to 60% of public tenders, only one or two suppliers participate. The government’s goal is to bolster competition, thus ensuring that citizens receive high-quality services and taxpayers get value for their investment. Enhanced public procurement efficiency is expected to create a more supportive environment for businesses, benefitting both companies and citizens alike.

The primary deliverable of the project is an assessment report, which will establish the national target for data collection and utilisation in public procurement, evaluate viable implementation options for the data repository (including potential content structures), and review legal requirements for the repository’s establishment, maintenance, data collection, storage, and usage. This initial report will guide future phases of the project, potentially leading to new legislation to support the database’s development.

Benefits for Public Sector Decision-Making

A key goal of the data repository is to improve data-driven decision-making at both local and national levels by providing public bodies with accessible, comparable data on procurement practices and spending. The initiative aims to increase public procurement efficiency, leading to medium-term cost savings. It also seeks to enhance transparency and data accessibility to support more effective evaluations of spending impacts, cost efficiency, and best practices, while improving comparability of municipal and regional services to help local authorities assess in-house production against outsourced services. 

Moreover, the initiative is aiming to strengthen open governance by providing extensive data publication. A unified data source will improve data availability, comparability, and integration, which in turn will support the assessment of cost-efficiency and impact, enable the spread of best practices, enhance fraud detection, and encourage the use of data in research. Municipalities and regional authorities will be better equipped to make data-informed choices that lead to efficient spending and higher-quality public services.

Implications for Foreign Companies

For international companies, the data repository offers several potential advantages by opening public procurement data in a way that could encourage competitive bidding from abroad. When enhancing transparency and comparability, foreign firms may gain a clearer understanding of Finland’s public procurement landscape and requirements, thereby allowing for more strategic participation in Finnish tenders. Furthermore, the repository’s emphasis on aligning data with international best practices may create a more level playing field for foreign companies, enabling them to showcase competitive advantages and potentially fostering greater foreign investments in Finland’s public sector.

Consultation, Current Status, and Future Steps

The Finnish National Public Procurement Data Repository Initiative, which launched its preparatory phase in November 2023, has actively involved public procurement entities and other stakeholders through hearings and surveys, including engagements as part of the Hankinta-Suomi program. A total of 101 statements have been submitted, offering substantial input from a wide range of sectors, including municipalities, government ministries, research institutions, industry associations, and nonprofit organisations. Key contributors, such as the cities of Helsinki and Espoo, the Ministry of Education and Culture, the Finnish Environment Institute, the Federation of Finnish Enterprises, and Open Knowledge Finland, have provided detailed feedback. 

The City of Helsinki, for instance, views the proposed measures as appropriate and the goals ambitious but suggests that practical implementation steps be clarified, as many actions require significant changes to procurement entity’s information systems. Open Knowledge Finland finds the memorandum’s description accurate, underscoring the need to ensure data openness and interoperability. Many contributors support the measures, particularly in terms of structuring procurement data and utilising competition identifiers, and stress that all data should be accessible and open. Nevertheless, several statements caution that the administrative workload and cost implications of the measures must align with the anticipated benefits, highlighting the importance of thoroughly evaluating the added workload for both procurement units and suppliers in future planning stages.

As of autumn 2024, based on the findings and stakeholder feedback, the government will decide on further steps, potentially initiating a regulatory project as well as a phased implementation of the data repository. The government aims to present legislative proposals in late 2024, establishing the necessary framework for the creation of a national procurement data repository along with associated digital services.

Long-Term Vision and Impact

By supporting a transparent, efficient, and competitive procurement process, the Finnish National Public Procurement Data Repository Initiative is expected to bring extensive benefits for both the public and private sectors, nationally and internationally. Through data-driven insights and enhanced transparency, the initiative will strengthen procurement practices, safeguard quality services for citizens, and support open governance and informed public administration. This forward-looking approach seeks to create a foundation for sustained efficiency and impact in public spending well into the future. The initiative holds opportunities not only for domestic stakeholders but also for foreign entities interested in entering or expanding in the Finnish market.