The 2026 reform of the Procurement Act

The Procurement Act reform (government bill HE 2/2026 vp), passed by parliament in the spring and in force since 18 June 2026, is one of the most significant updates to the rules of public procurement in years. Its core message is clear: the public sector must open markets to private competition more boldly, and it must be made easier for SMEs to take part in tenders.

From a bidding company's point of view this is not just an administrative update but a genuinely new opportunity to grow B2G sales.

This article goes through the reform's most important effects for bidders and sellers.

1. The 10 per cent ownership threshold for in-house companies

This is perhaps the most awaited and most debated change in the reform. Previously municipalities and wellbeing services counties could buy services from their affiliated entities (so-called in-house companies) without a tender even when they owned only a negligible fraction of the company.

The new law addresses this by setting a minimum ownership threshold of 10 per cent. If a contracting authority does not own at least ten per cent of an affiliated entity in limited company form, it can no longer make direct awards to it on the basis of that in-house status.

The reform opens a huge amount of previously closed business to open competition. Bidders should now be alert in the municipal field and the wellbeing services counties in particular, as old in-house arrangements have to be unwound and put out to tender on the open market.

2. The single-bid rule forces market dialogue

The rule change entering into force in October 2026 (1 October 2026) significantly changes the dynamics of the buying process. In future, open tenders above the EU threshold must in principle be discontinuedif the contracting authority receives only one acceptable bid.

There is, however, a significant exception: the tender need not be discontinued if the contracting authority carried out an open market survey before publishing the tender documents.

What does this mean for a seller?

• Buyers will in practice be forced to hold market dialogues in order to avoid heavy discontinuations.
• For a seller this means more opportunities than ever to influence the content and criteria of the tender documents in advance. Taking part proactively in requests for information is now a lifeline of B2G sales.

3. Splitting procurements into lots – opportunities for SMEs

In line with the government bill (HE 2/2026 vp), the law now obliges contracting authorities more strongly to divide large, giant procurement packages into lots. If a procurement is not divided, the buyer must justify that choice separately in writing (the so-called "divide or explain" principle).

The aim is to prevent markets from concentrating in the hands of the largest players only. Small and medium-sized companies will be able to bid for individual lots of large tenders without having to deliver a nationwide, massive solution or form complex consortia.

4. New grounds for exclusion

The reform also tightens the assessment of bidders' reliability. New mandatory grounds for exclusion were added to the law, relating in particular to environmental and nature conservation offences. A company must be excluded from a tender if a senior officer has been convicted of certain serious environmental offences.

This underlines responsibility requirements and calls on bidders to monitor not only their own operations but also the background of their subcontracting chains more closely than before.

Summary of the changes and the timetable

Frequently asked questions

When did the amendments to the Procurement Act enter into force?

Most of them on 18 June 2026 — including the ownership threshold for in-house companies, the division of procurements into lots and the new grounds for exclusion. The single-bid rule enters into force on 1 October 2026.

What is the 10 per cent ownership threshold for in-house companies?

A contracting authority can make direct awards to an affiliated entity only if it owns at least 10 per cent of it. The change opens business previously closed off by in-house arrangements to open competition, especially in municipalities and wellbeing services counties.

What is the single-bid rule?

From 1 October 2026, an open tender above the EU threshold must in principle be discontinued if only one acceptable bid is received — unless the buyer carried out an open market survey before the tender documents. In practice the rule forces buyers into market dialogue.

Sources: HE 2/2026 vp; amendments to the Procurement Act in force 18 June 2026 and 1 October 2026

• The Procurement Act in plain language – how the public sector buys
• Procurement thresholds – when does the Procurement Act apply, and what does it mean for a bidder?
• Award criteria
• All guides →