The Supreme Administrative Court refused the Wellbeing services county of Vantaa and Kerava´s complaint regarding Sarastias procurement

Summary of the article:

• The Supreme Administrative Court (KHO) has refused Vantaa and Kerava wellbeing services county´s (VAKE) complaint, which regarded the procurement of the human resources (HR) support systems from Sarastia Oy.
• According to KHO´s decision, the procurement shouldn´t have been made as an in-house procurement but should have been put out to tender in accordance with the act on public contracts.
• The wellbeing services county has already put the new HR-systems out for tender, which are implemented in april 2026. 

Vantaa and Kerava wellbeing services county´s county executive decided in the wellbeing services county´s starting phase in december 2022 to acquire support services for human resources from Sarastia Oy as an in-house procurement. The procurement was first dealt in the Market Court and then in the Supreme Ad­min­is­tra­tive Court. Sarastia Oy´s position as in-house company was evaluated in court, or i.e. did the wellbeing services county have enough dominant influence in the company, that an in-house procurement could be possible.

The KOH´s decision stated that the Wellbeing services county of Vantaa and Kerava didn´t use such dominant influence in Sarastia Oy, that the company could be considered its affiliated entity. Therefor the procurement should have been put out for tender in accordance with the Act on public contracts.

The Market Court had already earlier decided that the contracts shall end 12 months after the finality of the decision and imposed the wellbeing services county to pay a penalty fee of 1 000 euro to the state. The supreme administrative court decided that the Market Court´s decision will not be changed.

The KHO´s decision is significant for all those who make public procurements

From the perspective of the wellbeing services counties, it was not only a question about a single evaluation of an in-house procurement, but also a solution with of a broader national importance. The Wellbeing services county of Vantaa and Kerava assessed 2022, that the prerequisites for an in-house procurement would have been fulfilled in the matter and all other Sarastia Oy´s owners and clients have interpreted the matter in the same way.

According to the wellbeing services county´s evaluation Sarastia was eventually the only supplier, who was able to offer services for payroll calculation and an implementation project for these, so that the wellbeing services county has had the prerequisites to pay the staffs salaries immediately from 1.1.2023. Since then, the legislation regarding public procurement has been changed and the wellbeing services county has prepared themselves for this.

Read the KHO:s decision: Muu päätös 2250/2025 - Korkein hallinto-oikeus.

VAKE has put out the new HR-systems for tender

VAKE has prepared themselves for changes in HR-system well in advance, based on the previous decision from the market court. The services and systems acquired from Sarastia, was put out for tender almost a year ago and the process has proceeded according to plan.

As a result of the procurement, the producer for the payroll calculation service is changed, as well as HR and work shift planning systems. The new solutions are put into use in april 2026, which supports the efficiency, transparency, and regulatory compliance in the organization.