3. Procurement Procedures
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3. Procurement Procedures Start Comparison
a. What procurement procedures can be followed?

Pursuant to the PPA, the following types of procedures may be followed.

  • open procedure: Contracting authorities may, at their discretion, be able to apply at any time in both EU and national procedures. The open procedure of a contracting authority may be applied at any time in both EU and national procedures. The open procedure is a one-stage procedure, where no negotiations take place.
  • restricted procedure: Contracting authorities may, at their discretion, be able to apply at any time in both EU and national procedures. The restricted procedure is a two-stage procedure consisting of a participation and a tender phase. This means that any interested economic operator may apply to participate in the participation phase of the call for proposals. In the participation stage only a participation application can be submitted. The second bidding stage is the submission of bids. The contracting authority is obliged to call upon candidates who are qualified after the submission of applications. The contracting authority invites all qualified candidates to take part in bidding, unless it has determined a framework number.
  • innovation partnership pursuant to the EU rules as summarized on the Innovation Public Procurement Platform.
  • negotiated procedure: the negotiated procedure may only be applied when the conditions set out in the PPA are met. The negotiated procedure is a two-stage public procurement procedure whose first stage of participation is the decision of the contracting authority to decide on the eligibility of the candidate to perform the contract. At the participation stage, the candidate can not bid. At the second bidding stage of the procedure, the contracting authority negotiates the terms and conditions of the contract with candidates qualified and invited to tender.
  • competitive dialogue: Competition dialogue can be applied in the same cases as in which cases a negotiated procedure can be conducted. Thus, authorities may freely decide whether to pursue a negotiated procedure or a competitive dialogue. All interested operators are eligible to submit applications for participation in a competitive dialogue. The contracting authorities will continue to consult the candidates and discuss their solution proposals.. The purpose of the consultation is to specify the subject-matter of the procurement, which will enable the selected candidate to submit a bid later.
  • negotiated procedure without publication of a notice: One-stage procedure with no participation qualification. At the initiation of the procedure, negotiations and negotiations will be held after the bidders have been invited to tender. Due to the restrictive and restrictive features of negotiated procedures without notice, they are only permitted under strict conditions, subject to stringent rules. The contracting authorities are obliged to inform the Public Procurement Authority of the initiation of a negotiated procedure without notice, explaining the facts underlying the legal basis. If, during the audit, the Authority finds that the legal basis is not in place, the Public Procurement Authority's Chair shall initiate an appeal procedure before the Public Procurement Arbitration Committee, upon receipt of a deficiency.
b. What status do electronic means/procedures have?

As the relevant EU Directives allowed two years for member-states to put in place a functioning electronic procedure for procurements, use of which should be compulsory for parties involved in procurement falling within the scope of the PPA. Hungary undertook to fully implement such an electronic system before that deadline expires in October 2018. Government sources say implementation may be expected before the end of 2017.

c. Where are contract notices, i.e. calls for bid, published?

Calls for tender are published in the Public Procurement Bulletin by the Public Procurement Authority and searchable in the Public Procurement Database kept by the authority as well. Both sources are public and access is secured through the website of the Public Procurement Authority (see here – note that certain parts of the website are only available in Hungarian).

c. Can certain prospective bidders be excluded from the competition?

Certain prospective bidders may be excluded from the competition on the basis of the excluding causes listed in the PPA. For example, a company should be excluded from a public procurement procedure if, among others, it is under voluntary or involuntary winding-up or bankruptcy, has overdue taxes, its activities have been suspended, or has provided false data which jeopardizes competition.

The contracting authority may exclude the companies for which no national treatment should be granted. National treatment should be granted for bidders seated in the European Union and for community goods. National treatment to non-Community tenderers and non-Community goods should be granted in compliance with the international commitments of the Republic of Hungary and the European Communities in the field of public procurements.