Procurement of HRM and payroll system

The Espoon kaupunki in Finland from Europe region has released this tender for The City of Espoo hereinafter also the Client is requesting offers for an HRM and payroll system The subject of the procurement is a system as a software service SaaS which includes the functionalities of the Human Resources Administration main register the so-called HRM entity and payroll functionalities The solution must support different working time formats for employees of the City of Espoo such as office period and general working hours different ways of organizing work i e fixed and flexible working hours as well as collective agreements and local agreements used in municipalities The subject of the procurement is the following service entities - System as a software service SaaS - Implementation and adaptation of the service to Espoo - Application maintenance services - Further development and expert services of the system A more detailed description of the content of the procurement is provided in Appendix 1 of the request for tenders Description of the subject of the procurement One supplier and one alternate supplier will be selected based on the competitive tendering process The agreement enters into force upon signing and is valid until further notice The estimated start date of the contract period is December 2026 PREPARATION OF THE PROCUREMENT The procurement unit has prepared the procurement by assessing the alternatives and competitive conditions on the market as well as the methods of implementing the procurement In the market survey industry players have been consulted extensively in writing and through market dialogue expert opinions have been utilized the division of the procurement into parts and different implementation models have been evaluated PROGRESS OF MARKET DIALOGUES 2025 In 2025 market dialogues were held with three identified potential suppliers 1 Demo of the systems During weeks 12 - 15 2025 suppliers were asked to present the systems they have on offer 2 Commenting on the draft request for tender The draft request for tender was sent to suppliers for comment in two parts A1 and A2 - A1 comment round included other documents except for key process descriptions a summary of report needs the data contents of the teacher information notification and the requirements form for the functional requirements of the system The comment period was 5 5 2025 - 14 5 2025 and comments were reviewed with suppliers in supplier meetings in weeks 21 - A2 comment round included Annexes 1 3 1 8 1 9 of the draft request for tender and Annex 5 the requirements form tab Functional requirements The comment period was from 19 5 to 2 6 2025 and comments were reviewed with suppliers in supplier meetings during weeks 24 3 Clarifying questions sent Suppliers were also asked for more detailed information regarding the payroll times of the systems main user services and external HRM solution the life cycle of the available system technologies and estimates of the prices of user rights and licenses and the implementation project to support the definition of the acquisition value and budget PROGRESS OF MARKET DIALOGUES 2026 In early 2026 a fourth potential supplier was also surveyed from the market with whom a supplier meeting was held in week 7 to present the draft request for tender The supplier was sent the same draft request for tender for comment after the meeting as had been sent to other potential suppliers and comments were received on this on 5 March 2026 All four suppliers were also asked to provide written comments on the updated draft request for tender from 17 March to 1 April 2026 The market survey has been carried out in such a way that no individual supplier has been favoured and the survey has been conducted in a fair and transparent manner MARKET SURVEY OBSERVATIONS The observations obtained in the survey have been used in defining the subject of the procurement setting suitability requirements and defining the criteria for comparing offers Another key finding of the survey was that the market is potentially limited by the requirements of the collective agreements such as KVTES and OVTES for the HRM and payroll system used by the City of Espoo In addition limiting factors may include Espoo s needs regarding continuous payroll services the system s duplicated environment and integrations The principles of market mapping pursuant to Section 65 of the Procurement Act have been taken into account in the preparation of the procurement and the procurement unit considers that the preparation supports the implementation of competition DIVISION OF THE PROCUREMENT INTO PARTS The procurement unit has assessed the division of the procurement into parts The procurement has not been divided into parts because the system and the related service form a unified entity that is not appropriate to divide into smaller entities In addition dividing the procurement into parts would significantly increase the risks related to integrations division of responsibilities implementation and unified data management The procurement unit considers that not dividing is justified considering the nature of the procurement the method of implementation and the appropriate implementation The principles of market mapping in accordance with Section 65 of the Procurement Act have been taken into account in the preparation of the procurement and the procurement unit considers that the preparation supports the implementation of competition DIVISION OF THE PROCUREMENT INTO PARTS The procurement unit has assessed the division of the procurement into parts The procurement has not been divided into parts because the system and the related service that are the subject of the procurement form a unified entity that is not appropriate to divide into smaller entities In addition dividing the procurement into parts would significantly increase the risks related to integrations division of responsibilities implementation and unified data management The procurement unit considers that not dividing is justified considering the nature of the procurement the method of implementation and the appropriate implementation The principles of market mapping in accordance with Section 65 of the Procurement Act have been taken into account in the preparation of the procurement and the procurement unit considers that the preparation supports the implementation of competition DIVISION OF THE PROCUREMENT INTO PARTS The procurement unit has assessed the division of the procurement into parts The procurement has not been divided into parts because the system and the related service that are the subject of the procurement form a unified entity that is not appropriate to divide into smaller entities In addition dividing the procurement into parts would significantly increase the risks related to integrations division of responsibilities implementation and unified data management The procurement unit considers that not dividing is justified considering the nature of the procurement the method of implementation and the appropriate implementation with tender notice no. 664481-2026 published on 06 Oct 2026. The tender is due to expire on 30 Oct 2026. This tender is sourced from TED Europa and is eligible for suppliers interested in Time accounting or human resources software package, Payroll management services. Interested bidders can obtain further information including complete bid documents or ways to participate by registering on Tender Impulse and referencing via Tender Impulse ID 15262249.