Tallinn city government procuring bike sheds at €56,000 each

Tuesday's written correspondence between members of the Tallinn city government reveals that the price through procurement of a single bike shed in Tallinn has reached €56,000, a fivefold rise on the price of bike sheds previously ordered by Tallinn City Transport (TLT).
Deputy Mayor for Municipal Affairs Pärtel-Peeter Pere (Reform) wrote that according to the city's environment and municipal department (KEKO), the bike shelters were that much pricier because the tender involved a short deadline to ensure completion by autumn. "It has been a priority to build bike sheds. The deadline is to have them ready by the beginning of October," Pere wrote.
"We had two in-depth meetings on the topic with KEKO last week, and I also consulted the city's chief architect about the need for bike sheds. There were two alternatives: Either we carry out a new procurement and the bike shelters are ready in 2026 (if a new city government doesn't cancel them), or we build now, at a higher cost," Pere continued.
Pere also said that savings had been made elsewhere in the capital's administration when it comes to transport.
"We saved more than €4 million on the Peterburi tee procurement. As the deputy mayor responsible for this arena, I made the decision to build the bike sheds despite the higher price, in order to stick to the coalition agreement ('we will build bike houses at public transport hubs'), based on the city's development strategy 'Tallinn 2025', the 'Sustainable Urban Mobility Plan 2035', and the 'Tallinn Climate Plan 2050'," the letter also stated.
Pere further justified the decision in terms of the strategic goal of reducing traffic congestion and increasing the share of cycling, as well as solving the issue of safe and weatherproof bicycle storage at public transport hubs.

Isamaa deputy mayor: No need to pay over the odds just to get job done before elections
Deputy Mayor for Transport Kristjan Järvan (Isamaa) responded to Pere's letter, stating that there are several value-based positions in it that he, as a member of the city government, cannot approve of.
"To pay five times over market price for bike houses just to have them ready for the elections is insane waste of taxpayers' money," Järvan wrote.
Järvan suggests that the current tender could easily be canceled and a new one launched, with a longer deadline horizon.
Järvan pointed out that last year TLT acquired two bike sheds at €9,550 each, and one this year for €11,960.
City internal auditor Kaur Siruli inquired whether it is really the case that the bike house will cost €56,000. He expressed concerns that this is an unusually large expense which could also damage the city's reputation. Siruli therefore recommended considering not proceeding with this tender.
"If the lowest bid is taken, the total cost of one bike house with all associated department expenses will be about €56,000," procurement specialist Tiina Sepp confirmed in the city government's correspondence.
KEKO head Jaan Tarmak noted that the specific price is influenced by it being somewhat of an à la carte product. "Last year we commissioned a standard design solution for the city's bike sheds, and each one has to be custom built for the city," Tarmak wrote.
"There were two discussions on this topic on our project planning committee, and there were arguments both for and against, as well as votes for and against. The final decision, as is necessary in such situations, was made by the deputy mayor, based on political choices," Tarmak added.
Deputy Mayor for Urban Planning Madle Lippus (SDE) meanwhile proposed via email to put the tender process on hold.
Editor: Andrew Whyte