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Can a micro or small enterprise become a supplier in public procurement?
Procurement units in cities in the Helsinki metropolitan area have stated in their new procurement strategies and operational guidelines that tenders should be organized in a way that allows small businesses to participate and succeed. The ability to deliver is ensured by means other than excessively high turnover requirements.
Even in large procurements, there are opportunities, even if the entire project cannot be offered. According to the Procurement Act, EU procurements must be divided into parts. Therefore, partial tenders must be allowed unless there is a well-justified reason not to do so. In large contracts and projects, companies specialized in certain areas are often used.
If a request for tender does not allow partial tenders, an entrepreneur can offer their services to the main contractor as a subcontractor after the procurement process. The supplier selection for EU procurements is always published in Hilma (hankintailmoitukset.fi/en) as a post-notification.
Large and demanding procurements often include strict eligibility requirements. These are intended to ensure that the supplier has the necessary resources and expertise to carry out the procurement.
If one’s own resources are insufficient to meet the eligibility criteria, it is possible to submit a bid as a consortium. When bidding as a consortium, the members’ resources, such as turnover, references, and professional expertise, are combined. Technically, bidding as a consortium is easy. The more demanding task is assembling the right kind of network with which to respond to tenders.
Requests for small-scale procurements usually include only eligibility criteria related to professional competence and the Act on the Contractor’s Obligations and Liability. Small procurements are made most frequently. Because the Procurement Act does not require it, they are rarely published openly. They are typically tendered among known companies. Therefore, it is important for the entrepreneur to ensure, through appropriate marketing communication, that relevant units in public organizations are well aware of the company and its services and products. Without this visibility, one cannot participate in tenders.
Cities in the Helsinki metropolitan area often organize innovation competitions and pilot projects. In these, micro and small enterprises have excellent opportunities to participate, showcase and test the suitability of their innovative services, and become suppliers. These are announced in Hilma or through the cities’ communication channels.
In all procurements, networking is key. Networking with other companies as well as potential clients is one of the most important factors for success.
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