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KHO:1999:43 AI generated

Public procurement law allows accepting a tender where cost savings stem from existing staff rather than new expenses.

Case Number KHO:1999:43
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Administrative Court upheld the decision to award a hospital transport service contract to a municipal fire department based on its lowest bid. The court found that the bid's advantage relied on the fact that utilizing existing fire department personnel incurred no additional costs for the municipality. Consequently, the court ruled that such cost neutrality does not disqualify a tender from being considered the lowest price under the Public Procurement Act.

Legislator headnote

AI generated

Laki julkisista hankinnoista 7 §; The court established that a tender may be accepted as the lowest price even if the cost savings arise from the absence of additional expenses due to the use of existing personnel rather than new expenditures.

Keywords

AI generated
public procurement law lowest tender price existing personnel costs municipal fire department cost neutrality assessment

Cited Legislation

AI generated
Laki julkisista hankinnoista 7 §
Laki julkisista hankinnoista 7 §
AI generated
kho-precedent_1998_64
Court dismissed appeal against public tender awarding fire department transport services to lowest bidder.
market_2008_259
Market Court dismisses procurement challenge due to late filing despite valid postmark and service date.
kho-other_2017_6429
Supreme Administrative Court allows complaint against Market Court for invalid public procurement evaluation due to unclear tender criteria.
market_2002_162
Market Court dismissed bid protest where local authority selected bank based on non-price factors despite incomplete tender response.
market_2003_208
Market Court dismisses bid protest where tenderer's offer violated tender documents on price format and route changes.

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Full text

Kansanterveystyön kuntayhtymä oli tarjouskilpailun jälkeen päättänyt hankkia terveyskeskuksen sairaankuljetuspalvelut halvimman tarjouksen tehneeltä kuntayhtymään kuuluvan kaupungin palolaitokselta.

Se, että kunnallisen palolaitoksen sairaankuljetusta koskevan tarjouksen edullisuus perustui siihen, ettei palolaitoksen henkilökunnan käyttämisestä sairaankuljetuksissa aiheutunut kunnalle lisäkustannuksia, ei estänyt tarjouksen hyväksymistä halvimpana tarjouksena.

Laki julkisista hankinnoista 7 §