Request for opinions
Minister Ikonen highlights transparency of public spending – planned national procurement data repository would increase openness
A new data repository would bring together procurement data from all public sector organisations, which would significantly increase the openness of information on the use of public funds. This is based on the goals laid down in the Programme of Prime Minister Petteri Orpo’s Government to reduce costs, increase competition and make better use of information in the management of public procurement. The Ministry of Finance has prepared an assessment report of a procurement data repository and is now requesting opinions on the report by 15 September 2024.
Each year, central government, municipalities and wellbeing services counties spend about EUR 45 billion on public procurement. A national repository of procurement data would provide the first open view of public spending on procurement. It would also provide information on purchases that have not been subject to public tenders, which amount to approximately EUR 15 billion each year. The openness of information improves the transparency of administration and reduces the risk of corruption and the grey economy.
The objective of establishing a national procurement data repository would be to improve knowledge-based management in all public organisations, promote the efficiency of public procurement and facilitate the work of public authorities. The data repository could be used by businesses and organisations participating in public tenders to better identify and anticipate business opportunities.
In the new system, public procurement organisations would submit information on their procurement contracts and purchase invoices to the national public procurement data repository, which would be maintained by the State Treasury.
“We must make better use of data to make public procurement for effective. The public sector uses about 45 billion euros a year on public procurement. Given the state of Finland’s public finances, it is vital to find ways to increase transparency, produce information to support decision-making throughout the country, and make it easier for businesses to take part in public tenders,” said Minister of Local and Regional Government Anna-Kaisa Ikonen.
Need for centralised data increasing as procurement is managed more strategically
Procurement information is being used more often and more thoroughly as part of management and decision-making in the public sector. The ProcurFinland Programme has systematically developed the knowledge-based management of procurement as part of the implementation of the National Public Procurement Strategy. Despite this, organisations in public administration currently mainly monitor and analyse procurement independently based on their own procurement and purchase data. Previous reviews of procurement have already found that a national knowledge base would make it easier to identify the best practices of different organisations and share information.
Establishing a national procurement data repository would impose additional statutory reporting obligations on contracting entities. The data repository and the related reforms would be implemented mainly through technical changes to keep the administrative burden on contracting entities reasonable. The investment would pay for itself, for example, through saved procurement costs.
The Ministry of Finance's assessment report describes the current state of public procurement information services and the legislative and technical requirements for establishing the data repository. The Ministry requests that the submitted opinions focus on the objectives for the data repository, the current legislative basis and its scope of application, and the key types of data content for the repository. Observations that supplement the description of the current situation are also welcome.
The procurement data repository would be launched in stages staring in 2026.
Inquiries:
Olli-Juhani Piri, Senior Specialist, tel. +358 2955 30173, olli-juhani.piri(at)gov.fi
Information session: A national procurement data repository (in Finnish)