Procurement Risk:
Low
Score:
78/100
Government Policy
Q57
63/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. The Act on Public Defence and Security Procurement (and EU Directives) covers most of…
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Act on Public Defence and Security Procurement regulates the procurement process from the inital value estimations of the contract to the final selection of…
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Defence and security procurement generally follows the law. What has occasionally been considered problematic is the so called “direct procurement” which, nonetheless, takes place…
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Q58
83/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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The defence procurement cycle is formalised as it can be established from putting together information in the Government Defence Report and national (sub)strategies and…
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Public information about the defence procurement cycle is provided in a scattered manner and parts of it remain undisclosed. According to the website of…
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The National Audit Office inspected planning and management of Defence Forces’ material projects in 2017. According to the inspection report, “the overall process of…
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Q59
100/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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Procurement oversight takes place at a number of levels. Inter alia, (1) Compliance and internal audit are organised in each unit making procurement decisions.;(2)…
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Only the Parliament has the power to reject planned and prepared defence procurement, if it has been accepted and is recommended by the Defence…
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The documentation of Parliamentary Committees is made publicly available on the committees’ websites by default, unless (1) the Committee itself decides to conceal some…
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Information about major defence purchases is made public in advance e.g. in the Government Defence Report (published approx. every fifth year) and through its…
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The Act on Public Procurement and User Agreements, chapter 10, regulates procurement which does not cross the EU thresholds, but exceeds the national thresholds…
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The Ministry of Defence publishes on its website (under “news”) contracts that it has granted. [1] The Association of Finnish Defence and Aerospace Industries…
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The Hilma-system (a digital notification channel where public sector buyers announce their upcoming procurement plans, ongoing tendering procedures and the results of tenders that…
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Capability Gap and Requirements Definition
Q62
NEI/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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Act on Public Defence and Security Acquisition, Chapter 8 defines the conditions under which a bidder has to be excluded from the bidding process.…
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There is not enough evidence to score this indicator, as Finland does not currently provide requirements from the bidders in terms of clear anti-corruption…
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Q63
100/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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The Government’s Defence Report (published approx. every fifth year; following the Government Report of Finnish Foreign and Security Policy [3]) sets the political guidelines…
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Major procurement projects need to be accepted by the Parliament, which entails that the relative Parliamentary Committees work on them prior to the Parliament’s…
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The State Budget entails an appropriation for material and service acquisition (approx. 1/3 of the total defence budget annually), which cannot be exceeded. Procurement…
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Tender Solicitation, Assessment and Contract Award
Q64
NEI/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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There are no publicly available aggregate statistics about the percentages of different procurement processes annually. As such, this indicator cannot be scored and is…
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Oversight agencies have the powers to question the competition procedure selected, which has been done e.g. on the basis of security of supply and…
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Q65
44/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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The procurement process of the Defence Forces, inter alia the compilation of calls for bids and the comparison of the offers, is instructed in…
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The offers are evaluated by named experts against the commercial, technical, and other requirements specified in the calls for bids. In the setting of…
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There is no public transparency over tender board procedures. Research could not identify any further information on this subject.
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The National Audit Office of Finland and the Finnish Competition and Consumer Authority have the right to inspect and monitor the procurement process of…
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Q66
75/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Competition regulation at both the EU level and nationally forbid collusion [1]. Competition Act, chapter 2, section 5 states: Forbidden limitations to competition between…
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The Act on Public Defence and Security Procurement regulates on the conditions under which a tenderer may or must be excluded from the process…
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There is not enough information to score this indicator. No case of collusion was found during the research process, for the period 2016-2020. The…
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There is no publicly available information regarding training for procurement officials, as such this indicator is not scored and is marked ‘Not Enough Information’.
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Contract Delivery and In-Service Support
Q67
94/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Alongside legislation, for example, the general terms of public procurement – goods (JYSE 2014 tavarat) and the general terms of public procurement – services…
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Contracts and their modifications are available in th Hilma-portal in a redacted format. [1] However, the oversight agencies have less restricted access to documents.…
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The Act on State Civil Servants, Chapter 4, specifies the general obligations of civil servants [1]. Contract monitoring and reporting are included in the…
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Breaches of contract are acted upon as legislation, state level guidance, internal instructions and other relavant guidance required. There are no media reports on…
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Q68
92/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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The Act on Public Defence and Security Procurement, chapter 11, section 74 states: A contracting unit must provide written decisions on matters that influence…
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Courts provide redress. However, the Finnish court system has problems with cases running over many years, so while process might not be costly, the…
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Public procurement legislation prevents future discrimination on the basis that a company has previously complained to the Market Court. Exclusion can only be carried…
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According to the general terms of public procurement – goods (JYSE 2014 tavarat) and the general terms of public procurement – services (JYSE 2014…
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The cases are investigated and prosecuted through formal processes as defined by legislation, e.g. Act of Pre-Trial Investigation and Code of Judicial Procedure. [1,…
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There is not enough information to score this indicator. No cases or instances of corrupt activities by a supplier could be found through a…
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Offset Contracts
Q70
50/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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According to a written response provided by the Headquarters of the Defence Forces, in case industrial cooperation is incorporated in a procument of the…
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Anti-corruption efforts are demanded of the prime contractor whose responsibility it is to ensure the sub-contractors in the industrial participation projects follow national laws…
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According to a written response provided by the Headquarters of the Defence Forces, contract oversight is the responsibility of the Ministry of Defence. [1]…
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There is not enough evidence to score this indicator, as no publicly available data that would enable scoring was found through research. As such,…
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There is not enough evidence to score this indicator. No publicly available data was found to establish whether officials regularly produce a completion report…
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There is not enough evidence to score this indicator. With regards to industrial cooperation, no publicly available data was found to establish if action…
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According to a written response provided by the Headquarters of the Defence Forces, ordinances and procedures related to industrial cooperation in defence material projects…
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Agents / Brokers
Q73
NEI/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Research did not identify any legislation prohibiting the use of agents in procurement. The Ministry of Defence’s Instruction on Procurement and Conveying of Property…
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There is not enough evidence to score this indicator, as no publicly available data of sanctions relating to the use of agents was found.…
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Financing Package
Q74
50/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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In one case, the National Audit Office inspected the ongoig HX-project twice, in 2016 and 2020. In 2016, the evaluation concerned industrial participation in…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. According to a written response provided by the Headquarters of the Defence Forces, procurement…
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This indicator is not assigned a score in the GDI. The Government acquisition decisions are based on the Government’s Defence Report and other relevant…
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This indicator is not assigned a score in the GDI. There are no reports on defence acquisition based on domestic political pressure that would…
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