Guidelines for development projects and procurement
When the Ministry for Foreign Affairs contracts for services which will be paid for from development cooperation resources, a public announcement is made and companies submit a tender, according to the relevant legislation. When agreements are made between governments, it may also be agreed that there will be public competition for projects and procurements in the partner country, subject to the laws of that country.
Development cooperation resources are distributed primarily on the basis of intergovernmental agreements with developing countries, as well as state grants to various actors such as NGOs and international inter-governmental organisations. In addition, development cooperation resources are used to purchase, for example, a variety of consulting services for development cooperation projects.
- Act on Public Contracts 348/2007 (FINLEX) (PDF, 215 Kb)
The purpose of the Act on Public Contracts (348/2007) is to increase the efficiency of the use of public funds, promote high-quality procurement, and safeguard equal opportunities for companies and other communities in offering goods, services, and construction contracts under competitive bidding for public procurement.
The Ministry for Foreign Affairs pays special attention to the prevention of corruption at all stages of a development cooperation project, including the tender process.
The Act on Public Contracts (348/2007) shall not apply to projects and procurement whose value falls below the national threshold (30 000€). These thresholds are set out in Chapter 3 of this Act. In these cases, the competitive tender process does not apply.
This is not to say that these so-called small procurements are awarded without competitive bidding of any kind. Suppliers for these small procurements and projects must submit competitive tenders, but the process of deciding who shall be awarded the contract will not be as strict as with the larger, more valuable contracts.
At the start of the tender process, the contents of exactly what is to be supplied and how much, and its total value (including any options) is estimated. Projects which exceed the national and/or the EU thresholds, as defined in Chapter 3 of the Act on Public Contracts (348/2007) shall use the procedures for competitive bidding as set out in detail in this Act.
The contents and value of the project or procurement contract shall determine which procedure as stipulated by law is best suited for competitive bidding on and for awarding the contract.
Because the process and procedures of public procurement and projects is strictly regulated by law in great detail, the planning of the project becomes the most important phase. Given its importance, sufficient time must be allowed for planning before drawing up the invitation to tender, and for the submission of tenders.
Projects and invitations to tender must be announced as regulated by law: http://www.hankintailmoitukset.fi. (This internet site is not available in English.)
More detailed explanations of the different procedures for tendering can be found in the Handbook on Government Procurement.
- Handbook on Government Procurement 2010 (in Finnish)
The Ministry for Foreign Affairs own procurement manual is not available in English online. Contact the Ministry for Foreign Affairs for more information.
At the conclusion of the selection process, a decision is made on the project and a contract is drawn up with the winner of the tender.
Before the contract is signed, any waiting periods set by law must be observed.
- Procurement: Tenders
- Standard Terms for Payment of Fees and Reimbursement of Costs (PDF)
- Instructions for the utilization of project motor vehicles (PDF)