A memo prepared by Tallinn's internal auditor's office highlights questionable practices in how the Environment and Public Works Department has planned and carried out public procurements for urban furniture and the rental and maintenance of outdoor toilets.

The urban furniture tender — covering items such as benches, chairs and trash bins — was organized earlier this year with an estimated cost of €5.6 million. According to the internal audit, the technical descriptions in the tender were based on the specifications of products sold by specific companies, making it virtually impossible for others to offer equivalent alternatives.

"Dimensions were specified down to the millimeter, precise color codes were used and the designs referenced product photos and drawings from specific companies," said internal auditor Kaur Siruli.

He noted that competition had been restricted in some instances and that bidders were treated unequally, raising concerns about whether funds were used efficiently. The audit also found that not all procurement procedures ensured transparency and accountability.

"The tender was divided into five lots. The largest, worth €3.3 million, was awarded to Extery OÜ, which was also the sole bidder for that portion. As a result, there was no market price comparison and the contract may have ended up more expensive than necessary. The second-largest lot, worth €1.7 million, was awarded to Dambis Eesti OÜ," the memo stated.

The technical specifications in the procurement closely matched the products of the two companies — Extery OÜ and Dambis Eesti OÜ. The tender documents included their photos, drawings and exact measurements, without clearly defined criteria for what would qualify as an equivalent product.

"Although equivalent products were nominally allowed, in some cases this was effectively ruled out because the items were protected by intellectual property rights," the audit concluded.

For example, one bid was rejected because the proposed bench and trash bin were not deemed equivalent. The trash bin had a larger design, and the bench's backrest consisted of three identical boards, differing from the specified layout.

"The contracting authority's explanations showed that they were seeking products with very specific characteristics and appearances, which are manufactured and sold only by particular companies. This approach violates the principles of public procurement law and limits competition," the audit found.

Siruli emphasized that contracting entities may not refer to specific sources, processes, brand names, patents, models, origins or manufacturing methods in technical specifications if doing so could give an advantage to some suppliers or exclude others from participating.

As of June 16, five orders had been placed under the framework agreements, totaling €915,000. The largest order, worth €669,000, was placed with Extery OÜ.

"Due to insufficient initial planning, some of the furniture will have to be relocated because the installation sites did not meet expectations or are obstructing movement. It is estimated that about 10 percent of the elements installed as part of the first order — worth roughly €4,000 — will need to be moved," the internal audit noted.

Competitors suspects toilets tender custom-made for Cramo

Questions have also arisen regarding the city's procurement of outdoor toilets. On Tuesday, Õhtuleht reported suspicions among players in the outdoor toilet rental business that Deputy Mayor Pärtel-Peeter Pere (Reform), whose powers have since been suspended, steered the city's summer toilet contract toward a company led by longtime and well-known Reform Party member Remo Holsmer — Cramo.

Holsmer told the outlet that the accusations of collusion were "nonsense" and declined to comment further until he had reviewed the internal audit report. Pere, for his part, called the claims a political attack and stressed that procurement decisions are made at the civil service level.

"Officials have to look into this. If they don't, we'll be left with whatever stories people want to make up," Pere said.

The issue of outdoor toilets also caught the attention of Tallinn's internal audit. According to the memo, the Environment and Public Works Department organized three consecutive procurement procedures this spring, with a total value of €150,000. Internal auditors found shortcomings in all three processes.

The first tender, for 56 portable toilets, was awarded to Toilet OÜ, which submitted a bid of €86,180. Ten days later, the procurement was canceled, citing "changed needs" — specifically, a new requirement for toilets with windows and an additional eight units. The internal audit noted that a similar procurement had been canceled in 2024 after bids were received.

The second tender, this time for 64 toilets, was launched shortly afterward, but all four submitted bids were rejected as non-compliant.

"The fact that none of the bidders were able to meet the conditions raises questions about the clarity of the tender documents," the internal audit stated, adding that prior publication of price information may have harmed potential competition.

The third tender, also for 64 toilets, was carried out outside of the official Public Procurement Register, in violation of the Public Procurement Act.

"Document management was inadequate and some procedures were not properly recorded. The deadline for submitting bids was unreasonably short — just a few hours. Cramo Estonia AS was declared the winner, even though its bid did not meet the requirements," the memo noted.

The contract was awarded based on a €94,135 bid. No negotiations were held, and the city issued its formal decision on the bids only after the contract had already been signed.

Based on these findings, the internal audit concluded that the department's maintenance division — and the department more broadly — lacks sufficient oversight of active and expiring contracts. It also stated that the procurement planning process, especially the preparation of technical specifications, needs improvement.

Siruli noted in the memo that while the city's 2025 procurement plan includes 142 tenders in total — making these two only a small portion — the issues identified, combined with other background factors, mean the department must prioritize improving its procurement procedures.

To that end, the internal audit recommended that the Environment and Public Works Department urgently strengthen contract management, procurement planning and implementation. It also advised that those responsible for tenders begin preparations at least three to six months before publication.

In addition, the department should focus technical specifications on the desired outcome or function of goods and services rather than on specific brands, models or company solutions and avoid restrictive conditions that could limit competition, the memo said.

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