Extension of temporary module rental agreement

The Education Committee of the City of Akaa considered the space needs of early childhood education in Viiala, Akaa, in its meeting on 30.3.2026, §34. The service network plan for early childhood education in the City of Akaa was approved in the City Council meeting on 26.3.2025 (§18). Due to the simultaneous needs assessment and project planning for the new kindergarten in Toijala, there has not been an opportunity to conduct a more detailed needs assessment for early childhood education in the Viiala area. The updated child population forecast from MDI and the impact of decreasing age cohorts on the use of school facilities must be taken into account in advancing the planning of the early childhood education service network in Viiala. The City Board of Akaa considered the extension of the rental agreement for the existing temporary module at Kenttätie, Viiala, Akaa, in its meeting on 14.4.2026, §80. The City Board approved the implementation guidelines for the space project in its meeting on 16.1.2024 § 4. The education sector has proposed continuing the use of the currently rented space from Parmaco for another three years. The education sector has not had the resources to prepare overlapping needs assessments for existing kindergartens, in addition to the project planning for the newly completed Toijala kindergarten. It should also be noted that it takes approximately two years from the completion of needs assessments to implementation, depending on the implementation methods. Spaces for early childhood education are needed to ensure a high-quality overall process for both Viiala and Kylmäkoski kindergartens. In accordance with the implementation guidelines for the space project, a needs decision will be made for the space rental project, after which space mapping will continue. The technical department has already prepared space mapping by requesting offers for different rental options from Parmaco for the existing building. Parmaco has submitted an offer for different rental agreement extension models. The space administration has also investigated that further permitting for the building at its current location is possible. There are no ready usable own spaces. The City of Akaa has a valid rental agreement with Parmaco Oy (Business ID 2465039-0) for the rental of a relocatable modular building for early childhood education use. The agreement is based on the EU procurement notice published in 2017 (OJ 2017/S 216-448196) and the procurement agreement concluded on 9.7.2018. The agreement was amended by a modification notice published in 2023 (Hilma 464553), which extended the validity of the agreement until 30.6.2026 and changed the building's intended use to early childhood education. The total value of the agreement after amendments is EUR 1,004,650 (excl. VAT). The total value of the original agreement must not be more than doubled by amending the agreement. The value of the original agreement was €698,400. From the perspective of the technical department, extending the Kenttätie agreement is possible in two ways. Contract amendment: According to Parmaco's offer, the value of a three-year fixed-term agreement is €194,400 (excl. VAT). By making a modification notice, the total value of the procurement would be €1,199,050, which is still below double the value of the original agreement. Direct procurement: Direct procurement is carried out under Section 40, Paragraph 2, Point 2 of the Act on Public Procurement and Concession Contracts (1397/2016, Procurement Act). According to this provision, the contracting entity may carry out a direct procurement when, for technical reasons, only a specific supplier can carry out the procurement and there is no real alternative or substitute solution. According to the technical department's assessment, direct procurement is possible for the following reasons: 1. Technical obstacle to changing suppliers The site has a relocatable modular building owned and installed by Parmaco Oy, which is connected to the site's infrastructure (water, sewage, electricity, telecommunications). The building is the property of Parmaco Oy, which is rented to the city. Another supplier cannot rent a building owned by Parmaco Oy. The only alternative to changing suppliers would be to dismantle and remove the current building and manufacture and install a completely new building in its place. 2. The intended use of the temporary space does not allow for an interruption of use The building is in use for statutory early childhood education activities in accordance with the Early Childhood Education Act (540/2018). Changing the supplier would require dismantling the building, ordering, manufacturing, and installing a new building. This process takes several months and cannot be completed during the summer in a way that allows early childhood education activities to continue without interruption. An interruption of the statutory early childhood education service is not acceptable. 3. Economic grounds Changing the supplier would incur significant overlapping costs: dismantling costs of the current building, removal costs, manufacturing, transport, and installation costs of the new building, as well as costs for rebuilding infrastructure connections. These costs would be manifold compared to extending the current rental agreement. Furthermore, the rental price offered by Parmaco Oy for the extension period is significantly lower than the rental price level of the previous contract period. 4. Lack of competition Since the building at the site is the property of Parmaco Oy, only Parmaco Oy can continue to rent the building. Due to technical reasons, only one supplier can carry out the procurement, and there is no real alternative or substitute solution. The price offered by Parmaco is very competitive and at market level. The rental price for the extension period of €194,400 for three years (€5,400/month, excl. VAT = €9/m²/month) is significantly lower than the price level of the previous contract period. In the 2023 contract amendment, the total value of the agreement increased by €306,250 for an extension period of approximately 2.5 years, which corresponded to an annual cost of approximately €122,500. Thus, the price for the extension period is approximately 47% lower on an annual basis compared to the previous extension period. The decrease in the price level is explained by the fact that the acquisition costs of the building have been covered during the previous contract periods. The offered price has been compared to another temporary space in the municipality of Akaa in Kylmäkoski. The temporary space in Kylmäkoski was procured in 2023 and its v...