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What Is In-House Procurement (Sidosyksikköhankinta, Finland)?
This is a Finnish procurement term. A procurement the contracting authority makes from an affiliated entity under its control, without a competitive tender.
When is in-house procurement allowed?
When the authority controls the entity in the same way as its own departments, the entity carries out the great majority of its activity for its owners, and there is no private ownership in it apart from the limited cases the Act permits.
How much can an affiliated entity sell on the open market?
Only a small share of its turnover, subject to a ceiling set in the Act. The percentage and the euro cap should be checked against the current wording, as they have been amended.
Why does it matter to suppliers?
Work moved to an affiliated entity leaves the competitive market entirely. If the conditions are not met, the arrangement is an unlawful direct award and can be challenged.
