Finland – Software package and information systems – HRM- ja palkkajärjestelmän hankinta

The City of Espoo (hereafter also the Contracting Authority) invites tenders for an HRM and payroll system. The subject of the procurement is a software-as-a-service (SaaS) system that includes the core register functionalities of personnel administration (so-called HRM suite) and payroll functionalities. The solution must support the different working time models of the City of Espoo's employees, such as office hours, periodic and general working hours, different work arrangements, i.e. fixed and flexible working hours, as well as the collective agreements and local agreements used in the City and the local agreements. The subject of the procurement are the following service packages: - System as software service (SaaS) - Service implementation and adaptation for Espoo - Application maintenance services - System development and expert services. A more detailed description of the procurement content is in Annex 1 "Description of the subject of the procurement" of the Invitation to Tender. Based on the competitive dialogue, one supplier and one substitute supplier will be selected. The contract will enter into force upon signature and will be in force until further notice. The estimated start date of the contract period is December 2026. PROCUREMENT PREPARATION The procurement unit has prepared the procurement by assessing the alternatives available on the market and the competitive situation as well as the implementation methods of the procurement. In the market mapping, a wide range of operators in the field have been heard both in writing and through market dialogue, expert opinions have been utilised, the division of the procurement into parts and different implementation models have been assessed. PROGRESS OF MARKET DIALOGUES 2025 In 2025, market dialogues were conducted with three identified potential suppliers. 1) System demonstration Weeks 12 - 15 / 2025 suppliers were asked to present the systems they have on offer. 2) Commenting on the draft tender The draft tender was sent to suppliers for comment in two parts (A1 and A2). - A1 comment round: included all documents except key process descriptions, composition of reporting needs, notification of teacher data content and requirement form for the system's functional requirements. The comment period was 5.5.2025 – 14.5.2025 and comments were discussed with suppliers in supplier meetings weeks 21 - A2 comment round: included Annexes 1.3, 1.8, 1.9 and Annex 5, requirement form tab Functional Requirements. The comment period was 19.5 – 2.6.2025 and comments were discussed with suppliers in supplier meetings weeks 24. 3) Requested clarifying questions Suppliers were also asked for clarifying information regarding the payroll schedules of the systems, main user services and external HRM solution, the technology lifecycle of the systems on offer, as well as estimates of the costs of the usage rights and licences and the implementation project to support the procurement value and budget determination. PROGRESS OF MARKET DIALOGUES 2026 At the beginning of 2026, a fourth potential supplier was also mapped from the market, with whom a supplier meeting was held in week 7 to present the draft tender. The same draft tender was sent to the supplier after the meeting for comment as was sent to all other potential suppliers and comments were received on 5.3.2026. All four suppliers were also asked to comment in writing on the updated draft tender 17.3-1.4.2026. The market mapping has been carried out in such a way that no individual supplier has been favoured and the mapping has been carried out impartially and openly. MARKET MAPPING OBSERVATIONS The observations obtained in the mapping have been utilised in the definition of the subject of the procurement, the setting of suitability requirements and the determination of the criteria for comparing tenders. One of the key observations of the mapping was also that the requirements of the collective agreements (such as KVTES and OVTES) used by the City of Espoo may limit the market for the HRM and payroll system. In addition, limiting factors may be Espoo's needs related to the continuous services of payroll schedules, the system's dual environment and integrations. In the preparation of the procurement, the principles of the procurement law 65 § regarding market mapping have been taken into account and the procurement unit considers that the preparation supports the realisation of the competition. DIVISION OF PROCUREMENT INTO PARTS The procurement unit has assessed the division of the procurement into parts. The procurement has not been divided into parts, as the system subject to the procurement and the service related to it form a coherent whole, which is not meaningful to divide into smaller wholes. In addition, dividing the procurement into parts would significantly increase the risks related to integrations, division of responsibility, implementation and the uniform management of data. The procurement unit considers that not dividing it is justified in view of the nature, implementation method and purpose of the procurement.