Act CVIII of 2011 on Public Procurement PART ONE General Provisions Chapter I Objectives and Basic Principles

Section 1 This Act governs public procurement procedures and the related review procedures in order to ensure the transparency of public spending and to improve control of the appropriation of public funds, and to ensure fair competition in the course of public purchases. The objective of this Act and the legislation adopted for the implementation of this Act, furthermore, is to facilitate the participation of micro, small and medium-sized enterprises in public procurement procedures, to promote sustainable development and help to achieve the States social objectives, and to promote legitimate ways of employment. Section 2 (1) In public procurement procedures contracting entities shall provide for, and economic operators shall respect the fairness and transparency of competition and sufficient degree of advertising. (2) Contracting entities shall ensure equal opportunity and equal treatment for all economic operators affected. (3) In public procurement procedures contracting entities and economic operators shall proceed in accordance with the requirement of good faith and fairness, and of the principle of due course of the law. (4) Having regard to public spending contracting entities shall proceed bearing in mind the principle of efficient and prudent management. (5) Economic operators established in the European Union and Community goods shall be granted national treatment in public procurement procedures. National treatment to economic operators established outside the European Union and to non-Community goods shall be granted in procurement procedures in harmony with the international commitments of Hungary and the European Union in the field of public procurements. (6) The language in which public procurement procedures shall be conducted is Hungarian, contracting entities may decide to accept the use of a language other than Hungarian in public procurement procedures, however, it may not be made mandatory. Section 3 Derogations from the regulations of this Act are permitted only to the extent expressly permitted in this Act. In the application of the provisions of this Act, and in matters not regulated by law the objectives of public procurement regulations and the fundamental principles of procedures for the award of public contracts shall be duly observed in the preparation and implementation of public procurement procedures, and also during the conclusion and performance of the contract. The provisions of Act IV of 1959 on the Civil Code of the Republic of Hungary (hereinafter referred to as Civil Code) shall apply to contracts concluded in public procurement procedures, subject to the exceptions set out in this Act.

Chapter II Definitions
Section 4 For the purposes of this Act: 1. tenderer shall mean an economic operator which has submitted a tender under a public procurement procedure; 2. subcontractor shall mean an economic operator which directly participates in the perfo rmance of the contract awarded following the public procurement procedure on behalf of the tenderer, with the exception of: a) any economic operator which operates under exclusive rights, b) any manufacturer, distributor, supplier of parts or materials involved under contract in the performance of the contract awarded, c) in connection with public works contracts, any supplier of building materials; 3. contracts related to the countrys essential security interest shall mean public contracts whose object is directly related to public works and to supplies of goods and services obtained to meet the needs of the general public in terms of safety, environmental, health, economic, and defense considerations, including where purchases are made in connection with the cleanup of flood damage in a state of emergency defense alert; 4. dynamic purchasing system shall mean a completely electronic process for making commonly used purchases, the characteristics of which meet the requirements of the contracting entity, which is limited in duration and open throughout its validity to any tenderer which satisfies the selection criteria, who is not covered by any of the grounds for exclusion and has submitted an indicative tender that complies with the specification; 5. electronic auction shall mean a repetitive process, comprising part of the public procurement procedure, involving an electronic device for the presentation of new prices, revised downwards, and/or new values concerning certain elements of tenders, which occurs after the evaluation of the tenders according to Subsection (4) of Section 63, enabling them to be ranked using automatic evaluation methods; 6. electronic means shall mean electronic equipment used for the processing and storage of data which is transmitted, conveyed and received by wire, by radio, by optical means or by other electromagnetic means; 7. European Union and Member State of the European Union shall be understood as the European Economic Area and the States who are parties to the Agreement on the European Economic Area, with the exception covered by Paragraph d) of Subsection (1) of Section 9; 8. sustainability criteria shall mean criteria defined by the government decree on the implementation of sustainability criteria, such as in particular the aspects relating to resource and energy efficiency, dematerialization, reduction of greenhouse gas emission, and to solutions to minimize the level of environmental impact and pollution during the life of a given product or service; 9. economic operator shall mean a natural or legal person, unincorporated business association, sole proprietorship and any other entity with legal capacity under the laws of its home country, which offers on the market to execute works and/or the construction of new buildings, supply products and provide services; 10. false information shall mean when information has been knowingly disclosed as distorted; 11. misrepresentation shall mean a statement of an untruth;

12. framework agreement shall mean an agreement between one or more contracting entities and one or more tenderers, the purpose of which is to establish the substantial terms and conditions governing the contracts to be awarded during a given period, in particular with regard to the prices and, where appropriate, the quantity envisaged; 13. preparation of a procurement procedure shall mean the actions required before the commencement of a given public procurement procedure, including in particular the assessment and market survey relevant to the given procedure, calculating the estimated value of the contract, the publication of a tender notice, invitation and tender documents; 14. commencement of the award procedure shall mean the date of publication of the contract notice, as the initial step of the public procurement procedure, the date of delivery of the invitation to confirm interest [Subsection (1) of Section 38] or, in the case of negotiated procedures without prior publication of a contract notice, the date of dispatch of the invitation to negotiations in the case under Subsection (2) of Section 99, or failing this the date of commencement of negotiations; 15. community goods shall mean the goods defined as such in Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code; 16. dominant influence shall mean when an entity has the capacity to exercise at least one of the following over another entity: a) based on its share in the companys subscribed capital, it solely controls the majority of the voting rights of t he owners (shareholders), b) it solely controls the majority of votes based on agreement with the other owners (shareholders), c) it is entitled to elect (appoint) or dismiss the majority of executive employees (decision-makers, managing directors) or members of the supervisory board (supervisory or control body or organ); 17. postal services shall have the meaning defined in the Act on Postal Services, with the exception that the weight limits defined therein shall not apply to postal consignments; 18. other services than postal services shall mean services provided in the following areas: a) mail service management services (services both preceding and subsequent to dispatch, such as mailroom management services), b) added-value services linked to and provided entirely by electronic means (including the secure transmission of coded documents by electronic means, address management services and transmission of registered electronic mail), c) services concerning postal items not included in Point 17, such as direct mail bearing no address, d) financial services, as defined in Point 6 of Schedule No. 3 and in Paragraph b) of Subsection (5) of Section 9, including payment services, e) philatelic services, f) logistics services relating to postal consignments (services combining physical delivery and/or warehousing with other non-postal functions); 19. candidate tenderer shall mean an economic operator which has sought an invitation to take part in the first stage of a public procurement procedure comprising more than one stage; 20. body authorized to operate social employment programs shall have the meaning defined in the government decree laying down provisions, under authorization conferred by the Act on Social Services Administration and Social Welfare Benefits, for the authorization and supervision of social employment, for requesting social employment aid and for overseeing the appropriation of this aid;

21. financial aid shall mean assistance provided to the contracting entity for the execution of a public procurement contract in the form of money or other equivalent means, other than tax allowances and guarantees; 22. design contest shall mean those procedures - regulated in detail by specific other legislation - which enable the contracting authority to acquire, mainly in the fields of architecture and engineering, a plan or design selected by a jury after being put out to competition with or without the award of prizes; 23. sheltered employment shall mean transit or long -term employment provided by accredited employers, provided that more than 50 per cent of the employees are considered disabled under Section 22 of Act CXCI of 2011 on the Benefits Provided to Workers with Disabilities and on the Amendment of Certain Acts.

Chapter III Personal and Material Scope

Section 5 Public award procedures are to be conducted by public authorities for entering into contracts for pecuniary interest having as their object the execution of works or specific supplies subject to predetermined value limits (public procurement).

Contracting Authorities
Section 6 (1) For the purposes of this Act contracting entity shall mean: a) ministries, the Prime Ministers Office, and the central purchasing entities authorized to conduct centralized procurement procedures; b) the State, municipal governments and all budgetary authorities, public foundations, local and nation-wide nationality self-governments, associations of municipal governments, central purchasing entities of exclusive jurisdiction authorized by a municipal government to conduct centralized local procurement procedures locally, or by a group of municipal governments or communities governed by a common office to conduct centralized procurement procedures, associations of municipal governments for regional development, and territorial development councils; c) bodies recognized as having the capacity to perform legal acts, established to engage in activities - other than industrial or commercial activities - in the public interest, or one that is already engaged in such activities, on condition that any one or more of the organizations referred to in Paragraphs a)-d), Parliament or the Government directly or indirectly exercises dominant influence over it, separately or collectively, or that is financed for the most part by one or more of these organizations (bodies); d) the economic operator referred to in Paragraph k) of Subsection (1) of Section 9; e) any economic operator [Paragraph c) of Section 685 of the Civil Code], other than those covered by Paragraphs a)-d), that is engaged in pursuing either of the public service activities referred to in Subsection (2) of Section 114, or that was created for the principle purpose of the pursuit of such activities, over which one or more of the entities referred to in Paragraphs a)-d) is able to exercise, directly or indirectly, dominant influence, as regards the procurements carried out in connection with discharging its public service activities under Subsection (2) of Section 114; f) any operator, other than those covered by Paragraphs a)-e), that is engaged in pursuing either of the public service activities referred to in Subsection (2) of Section 114 under special or exclusive rights, as regards the procurements carried out in connection with discharging its public service activities under Subsection (2) of Section 114;

g) in connection with subsidized procurements, any operator, other than those covered by Paragraphs a)-f) - with the exception of private entrepreneurs in the case of procurements below the EU threshold -, whose public supply or public service contract, or public works contract is financed directly for the most part by one or more of the operators referred to in Paragraphs a)-d) in the case of procurements below the EU threshold, or financed directly covering more than seventy-five per cent in the case of procurements below the EU threshold which, however, reach the national limits; h) as regards the implementation of a given procurement, any operator, other than those covered by Paragraphs a)g), which carries out a public procurement procedure of its own motion or under contractual commitment, or under obligation imposed by specific other legislation. (2) In the application of Paragraph c) of Subsection (1), in connection with the definition of activities in the public interest, not having an industrial or commercial character, whether the body defined therein is engaged in the pursuit of any gainful activity outside its public interest missions, and whether such activity exceeds its general interest activities is irrelevant from the perspective of recognizing such operator as a contracting entity. (3) If the contracting entity covered by Subsection (1) is a credit institution or a financial enterprise, they shall not be treated as contracting entities with respect to the financial services and activities auxiliary to financial services, and investment services and activities auxiliary to investment services supplied to them. (4) In the application of Paragraph f) of Subsection (1), special or exclusive rights shall mean rights granted by the competent authority by way of any legislative, regulatory or administrative provision the effect of which is to limit the exercise of activities defined in Subsection (2) of Section 114 to one or only a restricted number of entities, and which substantially affects the ability of other entities to carry out such activity.

Aim of Public Contracts

Section 7 (1) Public contracts may, in general, be concluded for the purchase of goods and services, for public works, and public works concessions and service concessions. (2) Public supply contracts are contracts for pecuniary interest having as their object the purchase, lease, rental or hire-purchase, with or without the option to buy, of transferable and tangible products concluded between a supplier and a contracting entity. Public supply contracts shall also cover siting and installation operations. (3) Public works contracts are contracts for pecuniary interest having as their object the ordering (and acceptance) of one of the following works: a) the execution, or both the execution and design - as defined in specific other legislation -, of works related to one of the activities referred to in Schedule No. 1; b) the execution, or both the execution and design - as defined in specific other legislation -, of a building structure; c) the execution, by whatever means, of a building structure corresponding to the requirements specified by the contracting entity. (4) Public service contracts shall mean contracts - other than public works or supply contracts - for pecuniary interest concluded between a service provider and a contracting entity, having as their object the provision of services. (5) Public works concession is a contract of the same type as a works contract except for the fact that the consideration for the works to be carried out consists either solely in the right to exploit the work or in that right together with payment, where exploitation risks shall be assumed wholly or mostly by the successful tenderer.

(6) Services provided on the basis of a concession shall mean the supply of services where the consideration for the services to be carried out by the contracting entity consists either solely in the right to exploit the service for a specific duration (right of exploitation) or in this right together with payment, where exploitation risks shall be assumed wholly or mostly by the successful tenderer. Section 8 (1) If a public contract contains several different objects of procurement, which are essentially related by nature, it shall be rated based on the one with the highest value. (2) Contracts having as their object the purchase of supplies and/or services shall be treated as a public service contract if the value of the service is higher than the value of the supplies.

Exemptions
Section 9 (1) This Act shall not apply: a) with the exception of Part Five of this Act, to procurements affecting classified information, or which are related to fundamental national security or defense concerns and requiring special security measures (hereinafter referred to as classified procurement procedure) - in connection with procurements whose value reaches the EU threshold and in respect of which the competent Parliament committee has passed a preliminary decision precluding the application of this Act - where such procurements are covered by specific other legislation adopted by authorization of this Act, or which are exempted also from the specific other legislation adopted by authorization of this Act; b) with the exception of Part Five of this Act, in the field of national defense, to purchases of goods and services made expressly for military and law enforcement purposes (weapons, ammunition, military supplies), including contracts for the supply of services and public works contracts (hereinafter referred to as defense procurement procedure), in conformity with specific other legislation adopted by authorization of this Act, and where such procurements are exempted also from the application of that specific other legislation adopted by authorization of this Act in the interest of fundamental national security and defense concerns, in accordance with Article 346 of the Treaty on the Functioning of the European Union; c) to special procedures for purchases governed under international treaty or international agreement, if the treaty or agreement concerns the stationing, passage or engagement of troops (military forces), including the purchases made in connection with the deployment (transfer) or re-deployment of military units to the operating theater for the implementation of deployment (transfer) or re-deployment; d) to special procedures for procurement governed by international agreement entered into with a non-member state covering services intended for the joint implementation or exploitation of a project; e) to contracts awarded under special procedures, as defined by international organizations; f) to procurement contracts whose sole purpose is to enable the contracting entity to provide one or more public electronic communications services, or the provision or operation of, or access to, public electronic communications networks; g) to purchases of works, supplies and/or services through a central purchasing body by way of public procurement procedures by bodies on whose behalf the central purchasing body has awarded the relevant public contracts; h) to public works concessions and service concessions awarded by the contracting entities specified in Paragraphs a)-f) of Subsection (1) of Section 6, if the purpose of the concession is to enable the contracting entity to discharge its public service activities under Subsection (2) of Section 114 and, pursuant to Section 20 or Subsection (2) of Section 121, Chapter XIV of this Act would apply;

i) if a particular service concession is covered by the Act on Concessions, where the contracting entity shall notify the Kzbeszerzsi Hatsg (Procurement Authority) on the opening of proceedings according to the Concessions Act in writing without delay; j) where a particular service concession also falls within the scope of the Act on Regular Public Transport Services Provided by Bus, or under the Act on Rail Transport in connection with local public railroad services by means of tram, with the proviso that the contracting entity shall notify in writing the Kzbeszerzsi Hatsg thereof without delay; k) to agreements: ka) concluded by a contracting entity referred to in Paragraphs a)-d) of Subsection (1) of Section 6 with an economic operator of which it is the sole owner, and that the contracting entity supervises and controls outright as regards administrative duties with a view to carrying out its public functions or providing a service to the public, or making arrangements for having them carried out by others, and it has the capacity to assert considerable influence upon the strategic objectives and major decisions of that economic operator, provided that after the conclusion of the contract at least 80 per cent of the net annual income of the economic operator in the financial year concerned derives from discharging the contract to be concluded with the sole proprietor (shareholder), kb) concluded by a contracting entity referred to in Paragraphs a)-d) of Subsection (1) of Section 6 with an economic operator whose shares are held exclusively by this contracting entity and by another contracting entity (entities) referred to in Paragraphs a)-d) of Subsection (1) of Section 6, and that the contracting entities affected supervise and control outright as regards administrative duties with a view to carrying out its public functions or providing a service to the public, or making arrangements for having them carried out by others, and they have the capacity to assert considerable influence upon the strategic objectives and major decisions of that economic operator, provided that after the conclusion of the contract at least 80 per cent of the net annual income of the economic operator in the financial year concerned derives from discharging the contracts to be concluded with the contracting entities involved; l) to cases where the mandatory public education functions prescribed by Act LXXIX of 1993 on Public Education upon municipal governments are carried out by non-governmental operators of institutions, or where the rights for the operation of public education institutions are transferred to non-governmental operators of institutions. (2) The provisions contained in Paragraph k) of Subsection (1) shall apply also if the owner of the economic operator referred to in Paragraph k) of Subsection (1) is the State, in which case the other requirements set out in Paragraph k) of Subsection (1) shall be satisfied by the entity exercising ownership rights (in the case of ministers or directors of other central government bodies, the bodies they supervise) in their capacity as the contracting entity. (3) Unless otherwise provided for by law, the contracts referred to in Paragraph k) of Subsection (1) may be awarded for a fixed term of maximum five years. In the application of Paragraph k) of Subsection (1), the consideration received for providing public services to third persons under contract shall also be deemed to derive from discharging the contracts, regardless of whether the consideration in question is paid by the contracting entity or the person to whom the public service was provided. (4) The requirements set out in Subparagraphs ka) and kb) shall be satisfied throughout the full term of the contract. If the requirements set out in Subparagraphs ka) and kb) are no longer satisfied, the contracting entity has the right and obligation to terminate the contract with a notice period allowing ample time to find a replacement (conduct a public procurement procedure) for carrying out the public functions in question. (5) The procedure governed by this Act shall not apply to the procurement of services, if it pertains to: a) contracts for the purchase of an existing building structure or other property or any right in such building structure or property, with the exception of an agreement (concluded in any form and with any content) for financial services relating to such contracts; b) contracts for financial services under Point 6 of Schedule No. 3, consisting of the issue, sale, purchase or transfer of securities and other financial instruments, or aiming to raise money or capital with a view to the

implementation of monetary policy, exchange rates, reserve management or other policies of the central government involving public debt management, furthermore, central banking activities (services); c) contracts for the purchase, development and production (whether on their own account or jointly) of programming (program material) by media service providers or the Mdiaszolgltats-tmogat s Vagyonkezel Alap (Media Service Support and Asset Management Fund ), or to a contract for transmission time; d) contracts for arbitration, mediation and conciliation services; e) contracts of employment, public service and civil service relationships, the service relationship of government officials, prosecutors, court employees, law enforcement employees, and the service relation of professional solders serving in the armed forces; f) research and development service contracts other than those where the benefits accrue exclusively to the contracting entity for its own use, on condition that the service provided is wholly remunerated by the contracting entity; g) contracts for services provided by a contracting entities referred to in Paragraphs a)-c) of Subsection (1) of Section 6 or by an association they have established under exclusive right conferred by law; h) cases where the contracting entity referred to in Paragraphs a)-c) of Subsection (1) of Section 6 transfers the carrying out of specific public functions to another contracting entity referred to in Paragraphs a)-c) of Subsection (1) of Section 6, where the transferee contracting entity carries out the public functions independent of the transferor contracting entity, under its own responsibility, without aiming to make a profit. (6) The contracting entity referred to in Paragraphs a) and b) of Subsection (1) of Section 6 may - upon weighing the public interest in allowing or disallowing access to such information - restrict access to public information and information of public interest processed in connection with the procurements defined in Paragraph a) of Subsection (1) hereof for reasons of national security, for a maximum period of ten years from the date of origin of the data in question. (7) Under Subsection (6), access to: a) any resolution adopted by the body of competent jurisdiction in the procurement procedure, b) the name of the successful tenderer of the procurement procedure, c) the description, subject matter, value and duration of the contracts - including the name of the contracting parties - in the procurement procedure specified in Paragraph a) of Subsection (1) hereof may not be restricted.

Threshold Amounts for Public Contracts

Section 10 (1) Threshold amounts for public contracts shall mean: a) the values specified by the relevant legislation of the European Union for public contracts (hereinafter referred to as EU threshold); b) the values specified by the annual budget act as the national limit for public contracts (hereinafter referred to as national limit). (2) The European Commission shall determine the EU thresholds for a given period and shall publish them in the Official Journal of the European Union.

(3) The national limits for specific objects to be procured shall be determined each year in the annual budget act. The EU thresholds prescribed for specific objects to be procured shall be determined, in accordance with the relevant legislation of the European Union - referred to in Subsection (2) - relating to thresholds, each year in the annual budget act. (4) The Kzbeszerzsi Hatsg (Procurement Authority) shall publish the EU thresholds applicable to specific objects to be procured, as well as the national limits in the Kzbeszerzsi rtest ( Public Procurement Newsletter) at the beginning of each year. In doing so, the forint amount of EU thresholds shall be indicated according to the Communication of the European Commission published in the Official Journal of the European Union relating to the value of EU thresholds in national currencies.

Value of Public Contracts

Section 11 (1) The value of a public contract shall be construed as the highest amount of consideration generally requested, or offered for the object thereof, and calculated in observation of the provisions set out in Sections 12-18 exclusive of value added tax, at the time of commencement of the award procedure (hereinafter referred to as estimated value). The amount of consideration shall include any form of option, where the tender notice calls for any options. (2) The estimated value of public contracts shall comprise the fees and other payments (commission) payable by the contracting entity to tenderers and candidate tenderers, where the contracting entity is liable to make payments of the like to tenderers and candidate tenderers. (3) The choice of method used to calculate the estimated value of a contract may not be made with the intention of excluding it from the scope of this Act. Section 12 (1) In the case of contracts for the lease, rental or hire-purchase of products, the basis for calculating the estimated contract value shall be: a) in the case of fixed-term contracts, where that term is less than or equal to one year, the total value for their full term or, where the term of the contract is greater than one year, the total value for their full term, including the estimated residual value; b) in the case of contracts without a fixed term or the term of which cannot be defined at the time of the opening of the procedure, the monthly value multiplied by forty-eight. Section 13 (1) In the case of supply or service contracts which are regular in nature or which are intended to be renewed within a given period, the calculation of the estimated value shall be based on the following: a) either the total actual value of the successive contracts of the same type awarded during the preceding calendar year, adjusted, if possible, to take account of the changes in quantity or value which could occur in the course of the following calendar year; or b) the total estimated value of the successive contracts awarded during the twelve months following the first delivery, or during the full term of the contract or contracts if that is longer than twelve months. (2) In the case of public contracts with a buy option, the basis for calculating the estimated contract value shall be the highest amount of consideration, including the purchase price. (3) Where a public contract concerns the supply of goods and services both, the estimated contract value shall be established on the basis of the total estimated value of the goods and services. The estimated value of public supply contracts shall also include the estimated value of siting and installation operations where applicable.

Section 14 (1) In the case of service contracts which do not indicate a total price, the basis for calculating the estimated contract value shall be: a) in the case of fixed-term contracts, where that term is less than or equal to four years, the total value for their full term; b) in the case of contracts without a fixed term or with a term greater than four years, the monthly value multiplied by forty-eight. (2) For the purposes of calculating the estimated contract value for the services listed below, the following shall be taken into account: a) in the case of insurance services, the premium payable and other forms of remuneration; b) in the case of banking and other financial services, the fees, commissions and interest as well as other forms of remuneration; c) in the case of contracts involving design tasks, fees or commission payable as well as other forms of remuneration. Section 15 The estimated value of design contest shall include: a) the fees and other forms of remuneration payable to tenderers; and b) the estimated value of the service where the contract concerned follows a design contest, and that must be awarded to the successful candidate or to one of the successful candidates recommended by the evaluation committee, unless the contracting entity (contest organizer) has installed a clause in the notice published for setting the procedure in motion to exclude the award of such contracts. Section 16 (1) The estimated value of a public works contract shall be calculated on the basis of the total cost of the project. (2) The estimated value of a public works contract shall include the estimated value of any supplies or services necessary for the execution of the contract, which the contracting entity made available to the contractor. (3) The estimated value of supplies or services which are not necessary for the execution of a particular public works contract may not be included in the estimated value of the public works contract for the purpose of circumventing the provisions of this Act regarding the procurement of those supplies or services. Section 17 (1) The basis for calculating the estimated value of a framework agreement shall be the maximum estimated value of all the contracts envisaged for the period in question. (2) The basis for calculating the estimated value of a dynamic purchasing system shall be the maximum estimated value of all the contracts envisaged for the period in question. Section 18 (1) Contracting entities may not circumvent this Act, or the provisions of Part Two of this Act, by splitting proposed procurements.

(2) As regards the estimated contract value for the acquisition of similar supplies and/or services, it shall be calculated on the aggregate for contracts being awarded at the same time in the form of separate lots, as well as the value of contracts concluded for the same public works project. (3) By way of derogation from Subsection (2) above, the procedure under Part Three of this Act shall apply to all contracts the estimated value of which - exclusive of Subsection (2) - is below 21,824,000 forints for supplies and/or services, or below 272,800,000 forints in the case of public works contracts, provided that the value of such excluded lot of the public contract does not exceed twenty per cent of the sum that the contracting entity would have established as the estimated contract value in the application of Subsection (2). (4) Where the estimated contract value calculated in accordance with Subsection (2) reaches the EU threshold, the provisions under Subsection (3) shall not apply if exempted from the application of this Act [Section 120] by Part Three of this Act. (5) Where the contracting entity allows tendering for several lots in the same public procurement procedure, the value of all such lots shall be taken into account when calculating the estimated value of the public contract. (6) Subsection (2) shall apply separately for each foreign mission and for each institution managed by the State public education institution management center with respect to procurements made for foreign missions, and separately for each Parliament group with respect to procurements financed from the expense accounts made available to Parliament groups by law. Moreover, Subsection (2) shall apply with respect to procurements made for the bodies referred to in Paragraphs a)-c) of Subsection (1) of Section 8 and in Subsection (1) of Section 10 of Act CLXIII of 2011 on the Prosecution Service financed from their own appropriations.

Applicable Rules and Procedures

Section 19 (1) Procurements reaching or exceeding the EU thresholds are governed under Part Two of this Act, the ones below the EU thresholds and reaching the national limit are governed under Part Three, unless this Act contains provisions to the contrary. (2) Contracts for the services listed under Schedule No. 4 may be awarded by the procedure defined in Part Three of this Act. If the award procedure pertains to a service that includes a service from each of the lists under Schedule No. 3 and Schedule No. 4, it may be conducted according to Part Three of this Act, provided that the value of the service under Schedule No. 4 is higher than that of the service under Schedule No. 3. (3) In connection with contracts for the legal services referred to in Schedule No. 4, the contracting entity is not required to conduct a public procurement procedure, however, if the contract awarded reaches the EU threshold, the contracting entity shall publish the notice of contracting in accordance with specific other legislation and it shall be indicated in the annual statistical report to be prepared in accordance with specific other legislation. (4) Service concession contracts are governed by Part Three of this Act. (5) Part Two of this Act shall apply to public works concessions subject to the specific rules under Chapter XIII. (6) The detailed provisions on design contests are laid down in specific other legislation. The cases where a design contest must be conducted may be defined in specific other legislation. Section 20 (1) Part Two of this Act shall apply to the contracting entities referred to in Paragraphs a)-f) of Subsection (1) of Section 6 subject to the specific rules under Chapter XIV where the procurement relates to the contracting entity exercising one or more of the activities referred to in Subsection (2) of Section 114. (2) The specific rules under Chapter XIV shall apply to the contracting entities referred to in Paragraphs a)-f) of Subsection (1) of Section 6 where the procurement relates to the contracting entity exercising one or more of the

activities referred to in Subsection (2) of Section 114 and to other activities as well, where the subject-matter of the procurement, however, is principally intended for the pursuit of the public service activities referred to in Subsection (2) of Section 114. A public procurement procedure may not be conducted aiming to fall within the scope of Chapter XIV or to exclude the application of this Act, therefore consideration should be given to the possibilities of separating certain lots of the procurement connected to the pursuit of various activities. (3) Chapters I-XIII shall apply to the contracting entities referred to in Paragraphs a)-d) of Subsection (1) of Section 6 where the procurement relates to the contracting entity exercising one or more of the activities referred to in Subsection (2) of Section 114 and to other activities as well, and if it is impossible to determine for which activity the contract is principally intended. (4) Chapter XIV shall apply to the contracting entities referred to in Paragraphs e)-f) of Subsection (1) of Section 6 where the procurement relates to the contracting entity exercising one or more of the activities referred to in Subsection (2) of Section 114 and at the same time to other activities as well, and if it is impossible to determine for which activity the contract is principally intended. (5) An operator that carries out a public procurement procedure of its own motion or under contractual commitment according to Paragraph h) of Subsection (1) of Section 6 shall be able to proceed according to Chapter XIV if the procurement relates to the operator exercising one or more of the activities referred to in Subsection (2) of Section 114.

Chapter IV Provisions Concerning Contracting Entities and Economic Operators Proceedings of Contracting Entities
Section 21 (1) Contracting entities - other than those covered by Paragraphs g)-h) of Subsection (1) of Section 6 - shall notify the Kzbeszerzsi Hatsg (Procurement Authority) if they fall within the scope of this Act, and of any changes in their particulars within thirty days from the date when they become subject to this Act or from the effective date of the change. (2) A contracting entity may grant authorization to another contracting entity to conduct a public procurement procedure in his name and on his behalf. This, however, may in no case result in enabling the contracting entity giving the authorization to circumvent the relevant provisions of this Act. (3) Several contracting entities may form an affiliation for carrying out a public procurement procedure by appointing one contracting entity of the affiliation to effectively carry out the award procedure. (4) In the cases referred to in Subsections (2) and (3), the notice published for setting the procedure in motion shall contain an indication that the contracting entity is conducting the award procedure also on behalf of another contracting entity or entities. (5) The Kzbeszerzsi Hatsg shall maintain an up-to-date register on contracting entities (register of contracting entities) and shall make it available on its website, and shall supply information where necessary to the European Commission concerning the contracting entities listed in the register. If the entity affected fails to comply with the notification requirement referred to in Subsection (1) above, or if there is any doubt as to whether this Act applies to the entity affected, the Kzbeszerzsi Hatsg may refer the case to the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board). Section 22

(1) Contracting entities shall outline the preliminary actions and preparations, the internal control regime of their procurement procedures and the powers and authorities of the persons (bodies) authorized to act on their behalf or set to take part in the procedure, as well as the system of documentation and recording in accordance with the relevant regulations. To this end, the person or persons, or the bodies held accountable for the decisions made during procurement procedures must also be indicated. (2) Any contracting entity that does not have a comprehensive set of regulations for awarding public contracts in compliance with the requirements set out in Subsection (1), or if any derogation is warranted as permitted in the regulations, shall make arrangements accordingly before the preparation of the procurement procedure. (3) Persons and bodies taking any part in the preparation of public procurement procedures, in the preparation of publication and the preparation of documentation, as well as during the evaluation of tenders and in any stage of the procedure on behalf of the contracting entity, shall have adequate professional qualifications in purchasing, legal issues and finances consistent with the subject-matter of the procedure. (4) The contracting entity shall set up an evaluation committee of at least three members, having the qualifications referred to in Subsection (3), for the evaluation of tenders according to the provisions of Subsections (3)-(4) of Section 63, after the remedying of deficiencies and/or supplying information and explanations (Sections 67-70), where applicable. (3) The evaluation committee shall prepare a written assessment and recommendation in the name of the contracting entity for the person or body vested with authority to adopt a decision in conclusion of the public procurement procedure. The evaluation committee shall keep minutes with the evaluation sheets of its members, including explanation, attached. (5) The person responsible to render the final decision of the award procedure in the name of the contracting entity may not have a seat on the evaluation committee. In the case of panel decision, the person delegated by the decisionmaker into the evaluation committee may serve in an advisory capacity only. In the case of panel decision the roll call voting system must be used.

Centralized Procurement Procedures

Section 23 (1) The Government may order budgetary authorities and public foundations under its control and supervision, or public foundation it has founded, as well as State-owned economic operators to conduct their public procurements within the framework of a centralized procedure, and may determine the personal and material scope therefor, appoint the organization authorized to invite tenders (central purchasing body) and announce the possibility for joining the procedure. (2) Entities which are financed by the Egszsgbiztostsi Alap ( Health Insurance Fund) may undertake procurement procedures relating to health-care services within the framework of a centralized procedure. The Government shall have powers to decree the detailed regulations concerning the execution of such procedures, including the personal and material scope, as well as to appoint the central purchasing body. Funds allocated for the specific type of service in the budget of the Egszsgbiztostsi Alap shall be used to finance such centralized public procurement. (3) The detailed provisions on centralized procedures - reflecting the necessary derogations from this Act due to the unique nature of these procedures - are laid down in specific other legislation. (4) The Government may instruct communities governed by a common office to use the centralized public procurement system, and shall decree the detailed provisions on such centralized procedures reflecting the necessary derogations from this Act due to the unique nature of these procedures. (5) Any municipal government may order agencies under its control to conduct public procurement procedures within the framework of a centralized procedure. The municipal government shall adopt a decree for the centralized local procurement procedure. Centralized local procurement procedures shall be governed by the provisions of this Act and by the relevant municipal government decrees.

(6) Several municipal governments may form an affiliation for carrying out public procurement procedures collectively, within the framework of a centralized procedure. The rules for the cooperation of municipal governments participating in the centralized procurement procedures shall be laid down in the association agreement of such municipal governments.

Conflict of Interest
Section 24 (1) Contracting entities shall take every measures necessary to avoid conflicts of interest and the development of situations which might prejudice fair competition. (2) Any person or organization who (that) is unable to execute his (its) functions impartially and objectively for any reason, such as in particular due to economic interests, or any mutual interest that may exist with an economic operator involved in the procedure, shall be considered biased and may not partake in the preparation and implementation of the procedure in the name of the contracting entity. (3) Any person or organization who (that) is involved on the contracting entitys behalf in the procedure itself or in the preparatory work for a public contract may not enter the procedure in the capacity of a tenderer, candidate tenderer, subcontractor or body participating in the attestation of competence shall be considered biased and may not partake in the procedure if his (its) involvement might prejudice fair competition. The contracting entity shall draw the attention of persons or organizations engaged in the preparation of the award procedure to the fact that if his (its) participation in the public procurement procedure would result in a conflict of interest, with particular regard to the extra information thereby obtained. (4) A person or organization acting in the name and on behalf of the contracting entity, or engaged by the contracting entity for carrying out activities connected to the procedure or in the preparatory work shall provide a written statement to declare of not being affected by the conflict of interest described in this Section. (5) In the application of Subsection (3), fair competition shall not be considered prejudiced and participation of any person or organization from whom the contracting entity: a) has requested information in connection with a specific procurement, such as the assessment and market survey relevant to the given procedure, calculating the estimated value of the contract without indicating the date of commencement of the award procedure, conveying only the information that is necessary for the survey, or b) has received a proposal for lodging an application (tender) for subsidies or support, shall not be considered biased, provided that the contracting entity did not supply - in connection with Paragraph a) or b) - any information above and beyond what has been supplied to all tenderers (candidate tenderers) as relating to the public procurement procedure.

Provisions Relating to Economic Operators

Section 25 (1) Several economic operators may form a group to submit a tender or a request to participate jointly. (2) In the case referred to in Subsection (1), the grouping of tenderers or candidate tenderers shall designate a representative vested with powers to act on behalf of the grouping of tenderers or candidate tenderers in the public procurement procedures. (3) All statements made in the name of the grouping of tenderers or candidate tenderers shall contain a clear indication of the designation of the grouping of tenderers or candidate tenderers.

(4) Where the contracting entity is required under this Act to notify the tenderer or candidate tenderer, and in cases where additional information (Section 45), remedying deficiencies (Section 67), specific information (Section 67) or explanation (Sections 69-70) is requested the contracting entity shall send its notices, information and calls addressed to a grouping of tenderers (candidate tenderers) to the representative specified in Subsection (2) above. (5) If the contracting entity renders the provision of deposits and/or guarantees mandatory (Section 59), in the case of groupings of tenderers it shall suffice to make the deposit or guarantee available only once. In the event of any breach of the obligation to maintain the tender by any tenderer in a grouping [Subsection (4) of Section 59], the contracting entity shall lay claim to the deposit or guarantee. (6) The grouping of tenderers shall be jointly and severally liable for the performance of the contract to the contracting entity. (7) No change in the person of the economic operators having submitted a tender or request to participate jointly shall be authorized after the time limit for the receipt of tenders, or the time limit for participation in procedures comprising more than one stage. Section 26 Where an economic operator is set to be directly involved in the execution of the public contract in excess of twenty-five per cent of the value of the contract - or a specific lot where tendering is permitted for individual lots -, such economic operator shall not be treated as a subcontractor, but shall be designated in the tender (request to participate) and in the execution of the contract as participating in the grouping of tenderers (or as a candidate tenderer in the participation stage of the public procurement procedure). The proportion of involvement of an economic operator in the execution of a contract is determined based on the share it is entitled to receive from the consideration due under the contract, exclusive of value added tax. Section 27 (1) The contracting entity may not render participation in a public procurement procedure conditional upon the establishment of a business association, it may, however, require the successful tenderer(s) to do so where this is deemed justified in the interest of fulfilling the contract awarded following the public procurement procedure. The notice published for setting the procedure in motion shall contain a specific indication of the requirement for the establishment of a business association. (2) If the contracting entity permits or requires the establishment of a business association with a view to having the contract performed (project consortium), it shall specify in the tender documents the requirements relating to the creation of a business association, which must be limited to the companys legal form, the minim um subscribed capital required - consistent with the contract value -, the companys scope of activities and to the supervision of its activities.

Promoting Competition
Section 28 (1) In the same public procurement procedure, or for the same lot where tendering is permitted for individual lots, a tenderer or candidate tenderer: a) may not submit a tender jointly with another tenderer, and may not submit another request to participate jointly with another candidate tenderer, b) may not participate in that same procedure as a subcontractor of another tenderer or candidate tenderer, c) may not verify the suitability of another tenderer, having submitted a tender, concerning performance of the contract, or the suitability of another candidate tenderer, having submitted a request to participate, concerning performance of the contract [Subsection (5) of Section 55].

(2) Where the contracting entity considers that a clear and manifest infringement of Section 11 of Act LVII of 1996 on the Prohibition of Unfair Trading Practices and Unfair Competition (hereinafter referred to as Competition Act), or Article 101 of the Treaty on the Functioning of the European Union has been committed during a contract award procedure, or if there is reasonable suspicion of such infringement, it shall notify the Gazdasgi Versenyhivatal (Hungarian Competition Authority) thereof according to the provisions of the Competition Act pertaining to notifications or complaints.

Reserved Contracts
Section 29 (1) The contracting entity may reserve the right to participate in award procedures in accordance with the provisions of the relevant legislation, and must reserve it for organizations qualified as sheltered workplaces and for bodies authorized to operate social employment programs, if more then fifty per cent of their workforce is comprised of workers with reduced ability to work, or for bodies providing employment under a social employment program for workers cared for in social institutions, if more then fifty per cent of their workforce is comprised of workers with disabilities. The contracting entity shall clearly indicate this disposition in the notice published for setting the procedure in motion. (2) In connection with public contracts reserved according to Subsection (1) above, the contracting entity shall ensure equal opportunity to economic operators established in the European Union, if more then fifty percent of their workforce is comprised of workers with reduced ability to work. (3) The personal and material scope and the detailed regulations for the public procurement procedures referred to in Subsection (1) shall be laid down in specific other legislation. (4) Where Subsection (1) applies, the contracting entity shall proceed in due observation of the provisions of this Act and specific other legislation, also with a view to the estimated value of purchases.

Chapter V Provisions on Advertising and Communication Rules on Publication, Data Disclosure and Procurement Programs
Section 30 (1) Contracting entities shall publish by means of a notice: a) calls for tender in open procedures; b) invitations to participate in restricted procedures, negotiated procedures with prior publication of a contract notice and competitive dialogue procedures, with the exception of invitations to participate in restricted or negotiated procedures with prior publication of a periodic indicative information, or a restricted or negotiated procedures with prior publication of a notice on qualification system; c) calls for setting the procedure under Section 123 in motion; d) invitations to participate in restricted or negotiated procedures with prior publication of a periodic indicative information, or in restricted or negotiated procedures with prior publication of a notice on qualification system; e) notifications of the results of the award procedure; f) design contest notices for design contests;

g) results of design contests; h) notices of contract amendment. (2) The contracting entity shall publish the notice of the results of the award procedure [Paragraph e) of Subsection (1)] at the latest within ten working days from the date of signing the contract, or failing this the contracting entitys decision to declare the procedure unsuccessful, or refusing the conclude the contract [Subsection (9) of Section 124]. The public procurement procedure shall be considered concluded upon having this notice published. (3) By way of derogation from Subsection (2), the contracting entity may publish a notice of the results of the public procurement procedure conducted under a framework agreement concerning the contracts awarded on the basis of a framework agreement in a single notice. In this case, the notice shall be dispatched within ten working days following the last day of the quarter for contracts concluded under a framework agreement during the calendar quarter. A notice is not required for the first quarter - if only a fraction - following the conclusion of the framework agreement. (4) Contracting entities shall publish the notice of contract amendment [Paragraph h) of Subsection (1)] within fifteen working days from the effective date of such amendments. (5) Contracting entities shall send the notices by way of electronic means as specified in specific other legislation to the Kzbeszerzsi Hatsg (Procurement Authority). Contracting entities shall publish the notices required under this Act prepared according to the model prescribed in specific other legislation. The detailed provisions on the standard model notices prescribed and the mandatory layout of such models, on the disclosure and control of the notices, including the fee charged for such controls, dispatch and the procedures for the publication of such notices is laid down in specific other legislation. The fees charged for the control and editing of notices shall be treated as administrative service fees. The Authority shall allocate such fees for financing its operating expenses. Section 31 (1) Contracting entities shall publish the following data, information and documents on their own websites if available, or failing this on the website of the Kzbeszerzsi Hatsg ( Procurement Authority) or - where applicable - municipal government institution: a) the procurement program, and any amendment (amendments) thereto; b) the agreements concluded under Paragraph k) of Subsection (1) of Section 9; c) information related to the possibility to pursue pre-contractual remedies under Subsection (2) of Section 79; d) in connection with any review procedure opened in respect of a public procurement procedure: da) the particulars of the request as specified in this Act [Subsection (9) of Section 137], db) the ruling of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board ) authorizing the conclusion of the contract [Subsection (4) of Section 144]; e) contracts awarded on the basis of public procurement procedures; f) the following data and information relating to the performance of a contract: reference to the contract notice, the names of the parties to the contract, an indication as to whether the contract was executed as agreed, the date of performance as accepted by the contracting entity, as well as the date of payment of the consideration and the amount of consideration paid; g) the annual statistical report prescribed by specific other legislation. (2) The data under Subsection (1) shall be deemed information of public interest, and as such may not be withheld on the grounds of being treated as a business secret.

(3) The procurement program referred to in Paragraph a) of Subsection (1) shall be kept posted on the website until the procurement program for the next year is published. (4) The data, information and documents referred to in Paragraphs c)-d) and f)-g) of Subsection (1) above shall remain available on the website up to the time specified in Subsection (2) of Section 34. (5) The contracts mentioned in Paragraphs b) and e) of Subsection (1) shall remain available on the website for a period of five years from the date of performance without any interruption. (6) The information under Paragraph f) of Subsection (1) shall be published within fifteen days from the date of fulfillment of the contract by both parties, in the case of contracts of indefinite duration or with a term of over one year, the above-specified information shall be updated on a yearly basis following the conclusion of the contract. Section 32 (1) Contracting entities may prepare prior summary information - or a periodic indicative information if the contracting entity proceeds according to the specific rules under Chapter XIV - at the beginning of each fiscal year, for the year or for the following period of maximum twelve months concerning: a) all public contracts for the supply of goods planned for the year (other than those subject to any exemption and whose value reaches or exceeds the EU threshold) where the total estimated contract value reaches or exceeds the EU threshold; b) all public contracts for the supply of services under Schedule No. 3, planned for the year (other than those subject to any exemption and whose value reaches or exceeds the EU threshold) where the total estimated contract value reaches or exceeds the EU threshold. (2) The indicative summary information of public supply contracts shall be broken down according to CN chapters by means of reference to the Common Procurement Vocabulary (CPV). (3) The indicative summary information of public service contracts shall specify each type of service separately with reference to the classification of services under Schedule No. 3. (4) Contracting entities may prepare prior summary information - or a periodic indicative information in the case of procedures to be carried out according to the specific rules under Chapter XIV - containing the essential characteristics of public works contracts planned for the year if the estimated contract value reaches or exceeds the EU threshold applicable to public works. Where a contracting entity prepares a prior summary information, it shall be completed upon the final approval of the public works contract. (5) Where a procurement procedure concerns objects referred to in Paragraphs a) and b) of Subsection (1), prior summary information may be prepared separately for each one of them, or they may be comprised in a single notice. (6) The prior summary information referred to in Subsection (4) shall be drawn up separately. (7) Contracting entities shall publish the prior summary information, or the periodic indicative information within the meaning of Chapter XIV, by way of a notice prepared according to the model prescribed in specific other legislation. (8) If the prior summary information (periodic indicative information) is published on the official website of the contracting entity, the contracting entity shall send the notice entitled notice published on a buyer profile to the Publications Office of the European Union via the Kzbeszerzsi Hatsg (Procurement Authority). The prior summary information (periodic indicative information) may be published on the website after the aforementioned notice is dispatched to the Publications Office of the European Union by way of electronic means. (9) Having a notice containing prior summary information (periodic indicative information) published shall not constitute any obligation for conducting the public procurement procedures to which it pertains.

(10) Contracting entities proceeding according to Chapter XIV may, in particular, publish a notice on periodic indicative information relating to major public works projects without repeating the information previously included in a periodic indicative information of the like, provided that it is clearly stated that such notices are additional notices. (11) If the notice referred to in Subsection (7) is published by way of posting on the website of the contracting entity, the date of posting on the website shall apply in terms of the legal ramifications attached to the publication of notices. Section 33 (1) The contracting entities referred to in Paragraphs a)-d) of Subsection (1) of Section 6 - other than the contracting entities under Chapter XIV and the central purchasing bodies authorized to conduct centralized procurement procedures - shall prepare a summarized annual plan in the early part of each fiscal year, by 31 March at the latest, outlining all purchases planned for the given year (hereinafter referred to as procurement program). Contracting entities shall retain their procurement program for a minimum period of five years. Procurement programs shall be made available to the general public. (2) Contracting entities may launch procurement procedures prior to the completion of the procurement program, however, it too shall be properly indicated in the program. (3) Having included a particular procurement in the procurement program shall not constitute any obligation for conducting a procedure for awarding a contract therefor. Moreover, the contracting entity shall be entitled to conduct a procedure for a procurement not previously included in the procurement program where it is justified and/or warranted due to reasons unforeseen or to other changes in plans. In these cases the procurement program shall be revised according to the unforeseen procurement or other change, with the reason indicated. (4) Contracting entities shall, upon request, convey a copy of their procurement programs to the Kzbeszerzsi Hatsg (Procurement Authority) and to the supervisory bodies of competence for supervising the contracting entitys activities.

Provisions Relating to the Documentation of Award Procedures, Communication and Time Limits
Section 34 (1) Contracting entities shall document all public procurement procedures they publish - including preparations and performance of contracts awarded upon these procedures - in writing, or electronically in accordance with specific other legislation implemented by authorization of this Act where procedural actions are carried out by way of electronic means. (2) Contracting entities shall retain all documents connected to the preparation and conduct of public procurement procedures for five years following the conclusion of the procedure [Subsection (2) of Section 30], and all documents related to the performance of public contracts for five years following fulfillment of the contract. Where a review procedure has been opened in respect of a procurement procedure, the related documents shall be retained until the definitive conclusion of such procedure, or the conclusion of judicial review where applicable, in any case for at least five years. (3) Contracting entities shall make available documents relating to procurement procedures at the request of the Kzbeszerzsi Hatsg (Procurement Authority) or other bodies so empowered by the relevant legislation by way of dispatch or electronic means. Section 35 (1) All statements and representations between the contracting entity and economic operators must be made in writing, unless otherwise implied by the provisions of this Act.

(2) Unless a specific mode of communication is expressly prescribed by this Act, written statements may be made: a) by way of postal delivery or service of process, in accordance with Subsection (5); b) by fax; c) by way of electronic means. (3) The contracting entity may prescribe the use of a specific mode of communication, this, however, may not prejudice the principle of equal treatment of all economic operators; making statements solely by way of electronic means may not be demanded of tenderers, except for electronic auctions. (4) The statement under Paragraph c) of Subsection (2) may be submitted in the form of a document that has been executed by means of at least an advanced electronic signature, or in the form of an electronic document that satisfies the requirements set out in specific other legislation implemented by authorization of this Act. (5) Where information is requested by this Act in any form, it may be supplied by way of postal delivery only in exceptional and justified cases. Section 36 (1) Procedural actions may be performed by way of electronic means also. The execution of procedural steps in connection with public procurements by way of electronic means is governed by a government decree that may contain some derogation from the relevant provisions of this Act to the extent warranted by having such procedural actions carried out electronically. (2) Where this Act contains instructions concerning the keeping of minutes in the course of a public procurement procedure, it may be satisfied by means of an authentic instrument drafted on actions performed in the presence of a notary public. (3) Where this Act or specific other legislation adopted under authorization by this Act contains provisions for the submission of a document in the course of a public procurement procedure, or when it is requested by the contracting entity pursuant to this Act, a non-certified copy may be accepted unless otherwise provided for by law. Where a statement or document is required for enforcing a claim directly (such as a bank guarantee or a guarantee document) the contracting entity may require such to be provided in the original or in a certified copy. Where a document is submitted in a language other than Hungarian, the contracting entity shall accept the true translation of such document made by the tenderer. (4) If the country where a tenderer is established outside the European Union does not recognize the verification required under this Act, the contracting entity shall be authorized to accept a certificate or document that is equivalent to the verification in question. (5) In public procurement procedures contracting entities may not demand proof in connection with any facts and circumstances, furthermore, tenderers and bodies participating in the attestation of competence shall not be required to verify those facts and circumstances to which the contracting entity has access free of charge from any electronic, authentic or official public register that is available in Hungarian, such as the records and registers covered by the Act on the General Provisions Relating to the Taking Up and Pursuit of the Business of Service Activities. (6) The Kzbeszerzsi Hatsg (Procurement Authority) shall publish a guide concerning the electronic, authentic or official public registers referred to in Subsection (5), which are frequently accessed in connection with the subjectmatter of public procurements, including their internet addresses. If either of the records or registers mentioned in Subsection (5) are not included in the guide published by the Kzbeszerzsi Hatsg, the tenderer (candidate tenderer) or the body participating in the attestation of competence shall indicate in the public procurement procedure the register affected. (7) The contracting entity shall check the registers referred to in Subsection (5) on one occasion between the time limit for the receipt of tenders and the time of sending notice to tenderers of the results of the award procedure, or in procedures comprising more than one stage - between the expiry of the time limit for participation and the time of

sending notice to candidate tenderers of the results of the participation stage, and shall retain the outcome of the verification process attached to the documents of the public procurement procedure. Section 37 (1) As regards the time limits prescribed by this Act, a deadline or time limit expressed in days, months or years (hereinafter referred to collectively as time limit) shall not include the initial day. Initial day means the day when the cause substantiating the commencement of the time limit occurs. (2) Where a time limit is expressed in months or years, it shall expire on the day that corresponds to the day following the initial day, or if such day does not exist in the month when the time limit expires, on the last day of the month. (3) If the last day of the time limit falls on a day that is not a working day, the time limit shall expire on the next working day. (4) A time limit indicated in the tender notice (invitation to tender) shall commence on the day that follows the publication of the tender notice (invitation to tender), or the day on which the invitation was sent directly.

PART TWO Provisions Governing Public Contracts Whose Value Reaches the EU Threshold Chapter VI The Notice Contents of the Notice Published for Setting the Procedure in Motion
Section 38 (1) A notice for setting the procedure in motion can be made - consistent with the type of public procurement procedure - in the form of contract notice, invitation to participate, invitation to tender, or invitation to confirm interest defined in specific other legislation laying down specific rules for the procedure under Chapter XIV. (2) The contracting entity shall publish contract notices and invitations to participate drawn up in accordance with the models given in specific other legislation. (3) A notice published for setting the public procurement procedure in motion shall inter alia contain the following information: a) name, address, telephone and fax number (e-mail) of the contracting entity; b) the type of procedure, including the reasons for use of the negotiated procedure or accelerated procedure, where applicable; c) the way to obtain tender documents and additional documents, or the descriptive documents in the case of competitive dialogue procedures, the deadline by which to obtain them, and the place and financial conditions of purchasing them. In the case of restricted procedures, negotiated procedures with prior publication of a contract notice and competitive dialogue procedures, the notice published for setting the procedure in motion is to contain the particulars of the tender documents and/or descriptive documents if the contracting entity makes the tender documents (descriptive documents) available during the participation stage, or in negotiated procedures without prior

publication of a contract notice only if the contracting entity has prepared tender documents and did not send them with the invitation to tender; d) the object and volume of the procurement; e) description of the contract in respect of which the award procedure is conducted; f) term of the contract or the time limit for delivery; g) place of performance; h) payment terms and conditions, or reference to the relevant regulations; i) an indication as to whether tenders with multiple alternatives are accepted, and where contracts are subdivided into lots, indication of the possibility of tendering for one, for several and/or for all the lots; j) criteria to be applied in the evaluation of tenders [Subsection (2) of Section 71], the particulars under Subsection (3) of Section 71 where the award is made to the most economically advantageous tender, taking also into account Subsection (5) of Section 71; k) the grounds for exclusion and the approved means of verification; l) selection criteria, particulars for the assessment of suitability and the approved means of verification; m) the time limit for the receipt of tenders, or the time limit for participation in the case of invitation to participate; n) the address to which tenders or requests to participate must be sent; o) the language (languages) in which tenders and requests to participate must be drawn up, and an indication whether tenders and requests to participate may be submitted in a language other than Hungarian; p) the date and place of the opening of tender(s), and the persons authorized to be present at the opening of tenders; in the case of invitations to participate, the date and place of the opening of requests to participate; q) the minimum duration of the binding period, except for invitations to participate; r) in the case of invitations to participate, the planned date of dispatch of invitations to submit a tender; s) information relating to requirements for providing financial guarantees, and other deposits and/or guarantees stipulated in the contract; t) if funding for a public procurement is provided from European Union resources, the particulars of the project (program) affected. (4) Detailed information relating to the guarantees specified in Paragraph s) of Subsection (3) need not be included in the invitation to participate, however, the amount of financial guarantees the contracting entity plans to prescribe for entering the tendering stage of the procedure shall be indicated in the invitation to participate; in connection with contractual guarantees, the particulars under Subsection (1) of Section 126 shall be indicated. Section 39 (1) The notice published for setting the procedure in motion shall - under all circumstances - contain facilities to guarantee equal opportunities for all tenderers in preparing their tenders, or to submit their request to participate. (2) Information concerning the subject-matter of the procurement shall be made available in the notice published for setting the procedure in motion, so as to enable economic operators to determine whether the proposed contracts are of interest to them.

Section 40 (1) The contracting entity shall specify in the notice published for setting the procedure in motion requiring tenderers to disclose in their tenders or requests to participate: a) the part or parts of the public procurement contract in connection with which the tenderer (candidate tenderer) plans to use a subcontractor; b) any subcontractor planned to be involved covering more than ten per cent of the value of the contract in connection with those parts, and the percentage share of the public procurement contract in connection with which the said subcontractors will be involved. (2) The indication and subcontract referred to in Subsection (1) shall have no bearing on the tenderers liability for performance. (3) If the contracting entity has submitted or plans to submit an application (tender) for financial aid, the procedure may be launched irrespective of whether the tender notice has already been published or not, however, in the notice published for setting the procedure in motion economic operators shall be advised thereof, and of what is contained in Subsection (4). (4) In the application of Subsection (3), if the application for financial aid is refused, or if approved for a sum less than that required, it shall be construed as a circumstance to which the contracting entity may allude as the reason for his inability to conclude or fulfill the contract [Paragraph d) of Subsection (1) of Section 76, Subsection (9) of Section 124], moreover, the contracting entity may render the conclusion of the support agreement, or its conclusion in a specific amount as a condition precedent for the contract awarded upon the public procurement procedure to enter into effect.

Time Limit for the Receipt of Tenders and for Participation, Amendment and Withdrawal of Contract Notices and Tender Documents
Section 41 (1) Contracting entities are required to set the time limits for the receipt of tenders and for participation in due consideration of the minimum time limits prescribed for the specific types of procedures, and also if this Act does not provide for the minimum time limit, they shall in all cases be sufficiently long to permit responsive tendering and for drawing up the tender or request to participate in the light of the complexity of the tender to be submitted and the type of documents tenderers and candidate tenderers are required to submit. (2) Contracting entities may extend - in justified cases - the time limit for participation stipulated in the notice published for setting the procedure in motion on one occasion; the time limit may not be reduced. (3) If the notice for setting the procedure in motion has been published, the new deadline shall be published prior to the expiration of the initial deadline along with the reason for extension. In procedures opened without prior publication of a notice, economic operators invited to submit a tender or to participate [Subsection (1) of Section 38] are to be informed directly and simultaneously before the expiry of the initial deadline. (4) The provisions of Subsections (2)-(3) shall also apply to procedures comprising more than one stage, specifically to the tendering stage, in which case contracting entities shall inform the economic operators invited to submit a tender directly and simultaneously before the expiry of the initial deadline, concerning the new deadline. Section 42 (1) In open procedures, the contracting entity may revise the terms and conditions contained in the notice published for setting the procedure in motion and in the tender documents (Section 49), before the expiry of the time limit for the receipt of tenders.

(2) A new notice shall be published on the revised terms and conditions of the contract notice, or of the revised terms and conditions of the tender documents and - where extensive changes are made in the tender documents - on the amendment itself and a list of the modified sections, including the means and the deadline for making the revised tender documents available and the place where they can be obtained, before the expiry of the time limit referred to in Subsection (1), and at the same time the economic operators having expressed their interest for the procedure, in particular those who obtained the tender documents or requested additional information, shall be informed. (3) If the contract notice or the tender documents are amended the time limit for the receipt of tenders shall be extended accordingly. The new deadline shall be fixed so as to allow sufficient time for the submission of tenders, in any case at least half of the minimum time limit prescribed by this Act from the date of dispatch of the notice of change. If such sufficient time is available also on the basis of the initial time limit for the receipt of tenders, the initial time limit shall not be extended. If changes are made only in the tender documents and the time limit for the receipt of tenders need not be extended, a notice shall not be published - by way of derogation from Subsection (2) -, it shall suffice to inform the economic operators who have received the tender documents concerning the amendment or the availability of tender documents. (4) Where extensive changes are made in the tender documents, the consolidated version of the tender documents, as amended, shall be made available in accordance with the relevant provisions of Sections 50-51, for no additional charge. Where a design, technical specifications or itemized schedule of works, comprising an integral part of the tender documents remains unaltered, it shall not be delivered with the consolidated version of the tender documents. (5) In negotiated procedures without prior publication of a contract notice Subsections (1)-(4) shall apply, where economic operators invited to submit a tender are to be informed directly and simultaneously before the expiry of the initial deadline referred to in Subsection (1), in lieu of publishing a notice, and the extended time limit for the receipt of tenders shall in all cases be sufficiently long from the time of dispatch of the notice of amendment to permit responsive tendering. Section 43 (1) In restricted procedures and in negotiated procedures with prior publication of a contract notice the contracting entity shall - in accordance with Subsections (1)-(4) of Section 42 - be able to amend the invitation to participate during the first stage, and the tender documents if the tender documents had been made available during the participation stage, and in competitive dialogue procedures the invitation to participate and the descriptive documents before the expiry of the time limit for participation, where the time limit for the receipt of tenders and tender documents shall also be construed, respectively, as the time limit for participation and descriptive documents. (2) During the tendering stage of restricted procedures and negotiated procedures with prior publication of a contract notice, and competitive dialogue procedures the contracting entity shall be able to modify the invitation to tender and the tender documents (descriptive documents) before the expiry of the time limit for the receipt of tenders, of which the economic operators invited to submit a tender must be notified directly and simultaneously. (3) During the tendering stage of restricted procedures any section of the invitation to tender or the tender documents which have been included in the invitation to participate may not be amended. (4) In negotiated procedures with prior publication of a contract notice and in competitive dialogue procedures the invitation to tender or the tender documents (descriptive documents) may not be amended to involve material changes to the conditions set forth during any previous stage or stages of the procedure, which are likely to distort competition or have a discriminatory effect, particularly if knowledge of the new conditions would have a significant impact on the ability of interested economic operators to determine whether it is viable for them to enter the public procurement procedure in question, or on account of the changes any tenderer would not be able to submit a tender. (5) Where extensive changes are made, the consolidated version of the tender documents, as amended, shall be made available in accordance with Sections 50-51. Section 44

(1) The contracting entity shall have the right to withdraw the notice published for setting the procedure in motion anytime before the time limit for the receipt of tenders or the time limit for participation. (2) If the notice for setting the procedure in motion has been published, a notice of withdrawal shall be published before the time limit referred to in Subsection (1) and at the same time the economic operators having expressed their interest for the procedure shall be notified. In procedures opened without prior publication of a notice, economic operators invited to submit a tender or to participate are to be informed directly and simultaneously before the expiry of the initial deadline. (3) In restricted procedures and in negotiated procedures with publication of a contract notice (or an invitation to confirm interest under specific other legislation) the contracting entity may withdraw the invitation to tender anytime during the tendering stage of the negotiated procedure, or during the dialogue or tendering stage of the competitive dialogue before the time limit for submission of tenders, only if unable to conclude or fulfill the contract due to any unforeseen and unavoidable circumstance beyond its control that has occurred following the time of dispatch of the invitation to tender. In this case the contracting entity shall declare the procedure unsuccessful.

Additional Information
Section 45 (1) In the interest of responsive tendering or requesting to participate, any economic operator who has the capacity to participate in the given public procurement procedure as a tenderer or candidate tenderer may request additional (interpretative) information in connection with the notice published for setting the procedure in motion, the invitation to tender in procedures comprising more than one stage, and the tender documents (descriptive documents) from the contracting entity or the authorized body acting on its behalf. (2) The additional information should be given within a reasonable time upon receipt of the request, not more than six days before the time limit for the receipt of tenders, not more than four days in the case of accelerated procedures, not more than three days in the case of negotiated procedures without prior publication of a contract notice, and not more than four days before the time limit for participation during the participation stage of public procurement procedures. (3) If the request for additional information is submitted after the fourth day before the time limit for reply under Subsection (2), or after the third day in the case of accelerated procedures and negotiated procedures without prior publication of a contract notice, the contracting entity shall be required to supply additional information only if it can be prepared and dispatched according to Subsection (5) before the time limit for the receipt of tenders and for participation. The contracting entity - if it considers that the additional information requested in delay is necessary in the interest of responsive tendering or requesting to participate, and the time available for making the reply is insufficient - shall have powers to extend the time limit for the receipt of tenders and for participation as described in Subsection (4). (4) The contracting entity shall extend the time limit for receipt of tenders or for participation if the request for additional information is submitted by not later than the fourth day before the time limit for reply under Subsection (2), or the third day in the case of accelerated procedures and negotiated procedures without prior publication of a contract notice, and the contracting entity is unable to supply additional information in due time. All economic operators having expressed an interest in the procedure shall be notified without delay and simultaneously of the extension, whereas during the tendering stage of procedures comprising more than one stage, and in procedures opened without prior publication of a notice all economic operators invited directly to submit a tender or to participate must be notified of the extension. Subsections (2)-(3) of Section 41 shall not apply to the extension of any time limit published by means of a notice if the contracting entity has prescribed in the notice published for setting the procedure in motion that the tender documents (descriptive documents), or the additional documents made available for the drawing up of requests to participate must be purchased or obtained as a precondition for participation. The economic operators who did not purchase or obtain the tender documents or additional documents at the time of extension of the time limit for the receipt of tenders shall be notified in writing thereof at the time of delivering the tender documents or additional documents.

(5) The contracting entity shall provide the additional information in a manner to ensure that the equal treatment of economic operators is not prejudiced. The additional information shall be made available in its entirety, or shall be sent to all economic operators having expressed an interest in the procedure, whereas during the tendering stage of procedures comprising more than one stage, and in procedures opened without prior publication of a notice to all economic operator invited directly to submit a tender or to participate. In the process of giving additional information the contracting entity shall not disclose the name of the economic operator having submitted the request, moreover, in open procedures no information shall be disclosed concerning the economic operators to whom the contracting entity has delivered the information. (6) Without prejudice to Sections 42-43, the contracting entity shall supply additional information to indicating that a particular element or requirement of the tender documents (descriptive documents) is null and void, if the same data or information appears differently within the tender documents, or if any element of the tender documents differs from what is contained in the notice published for setting the procedure in motion, the invitation to tender of procedures comprising more than one stage or from the relevant provisions of this Act. The element or requirement that has been declared null and void may not be used in the public procurement procedure nor in the public contract awarded. (7) Additional information may be provided also in the form of consultation. In this case the notice published for setting the procedure in motion shall indicate the place and date of consultation. The events of the consultation shall be recorded in minutes, a copy of which shall be given or made available electronically to the economic operators referred to in Subsection (5) within fifteen days from the day of consultation. (8) Subsections (1)-(7) shall apply where additional information is provided at the time of walk-through or inspection of the premises.

Chapter VII Description of the Subject-Matter of Procurements, Public Procurement Technical Specifications
Section 46 (1) The contracting entity shall indicate in the notice published for setting the procedure in motion the object and volume of the procurement. (2) The volume of procurement may be conveyed by the contracting entity indicating the minimum or maximum quantities or values and stipulating the possibility, and the percentage, for deviation from these quantities. (3) Contracting entities are required to examine their purchases to determine as to whether the nature of the subject matter of the procurement is such as to permit tendering for individual lots. Where the nature of the subject-matter of the procurement is such as to permit tendering for individual lots, contracting entities shall install an indication in the notice published for setting the procedure in motion allowing for the possibility of tendering, or lodging a request to participate for individual lots, provided that this is not considered unfeasible for economic and technical considerations, quality requirements and other factors related to the fulfillment of the contract. (4) Where the possibility of tendering, or lodging a request to participate for individual lots is permitted, the notice published for setting the procedure in motion shall contain an indication as to the various lots, each one a subject of a contract, defined separately. (5) In the case covered by Subsection (3), contracting entities may prescribe in the notice published for setting the procedure in motion that one tenderer is entitled to present a tender or lodge a request to participate for all the lots, however, this shall not be made obligatory. Section 47

(1) The notice published for setting the procedure in motion shall contain an indication as to whether authorization to submit variants (alternatives) exists or not. (2) The contracting entity shall provide for the admission of tenders with multiple alternatives when the award is made to the most economically advantageous tender [Paragraph b) of Subsection (2) of Section 71] in the procedure. (3) Where variants are accepted, the contracting entity shall specify in the notice published for setting the procedure in motion or the tender documents the minimum requirements and/or the public procurement technical specifications with which the different versions must be in compliance, and any other conditions concerning their submission. Suitability of a variant shall not be affected by the circumstance that it would lead, if accepted, to a supply contract rather than a public service contract, or to a public service contract rather than a supply contract. Section 48 (1) The contracting entity shall provide technical specifications for the subject matter of the public procurement in the notice published for setting the procedure in motion or in the tender documents. (2) Technical specification means the totality of the technical prescriptions contained in particular in the tender documents, defining the characteristics required of the subject-matter of the procurement, which permits the subjectmatter of the procurement to be described in a manner such that it fulfils the use for which it is intended by the contracting entity. (3) The detailed regulations concerning technical specifications are laid down in specific other legislation.

Chapter VIII Tender Documents

Section 49 (1) The contracting entity must - with a view to promoting responsive tendering - prepare tender documents, or descriptive documents in the case of competitive dialogue procedures, and shall have the option to prepare tender documents in negotiated procedures without prior publication of a contract notice. The tender documents shall inter alia contain the draft terms and conditions of the contract, except in the case of negotiated procedures and competitive dialogues, where the contracting entity has the right to apply the known contract terms and conditions instead of a draft contract (draft contract and contract terms and conditions hereinafter referred to collectively as draft contract). (2) The aforementioned tender documents shall contain information made available to tenderers with a view to drawing up their tenders, and a list of certificates and statements to be enclosed with the offer. The tender documents may also contain model certificates and statements recommended to tenderers. If the tender documents are made available during the participation stage, they may contain information relating to the participation stage of the public procurement procedure as well. In connection with public procurement procedures for public works, in the interest of responsive tendering and for tenders to be compared and assessed objectively, contracting entities are to provide to tenderers an itemized schedule of works pertaining to and corresponding with the subject-matter of the procedure. (3) The provisions on tender documents shall also apply to descriptive documents, subject to the exception set out in Subsection (2) of Section 105. (4) Contracting entities shall be allowed to define the detailed rules relating to certain specific requirements and constituent elements prescribed in the tender documents, however, this may not impair the ability of any economic operator who would otherwise be able to make an offer based on the notice published for setting the procedure in motion to submit a tender stemming from the wording of the documents. (5) Contracting entities shall ensure that the tender documents are available from the date of dispatch of the contract notice in the case of open procedures, from the date of commencement of the procedure in the case of

negotiated procedures without prior publication of a contract notice - if tender documents are prepared -, or from the date of dispatch of the invitation to tender in the case of restricted procedures, negotiated procedures with prior publication of a contract notice and competitive dialogues, until the time limit for the receipt of tenders. (6) The contracting entity may prescribe that at least one tenderer or candidate tenderer, or at least one subcontractor indicated in the tender or request to participate is required to purchase or obtain the tender documents for each tender or request to participate, or to access them by way of electronic means. Section 50 (1) In the contract notice of open procedures the contracting entity shall specify the way to obtain the tender documents, the deadline by which to obtain, and the place and financial conditions for purchasing them. (2) The provisions of Subsection (1) shall also apply in negotiated procedures without prior publication of a contract notice if the contracting entity has prepared tender documents and did not send them with the invitation to tender to economic operators invited to submit a tender. (3) Where the tender documents are requested to be delivered, and the contracting entity did not make available the complete set of tender documents by way of electronic means, the contracting entity or the authorized body acting on its behalf shall comply within two working days from the date when the request is received, provided that the price is paid in full. Section 51 (1) In procedures comprising more than one stage the contracting entity shall only be required to disclose in the invitation to participate the data referred to in Subsection (1) of Section 50 in respect of the tender documents only if the tender documents are made available during the participation stage. (2) If the contracting entity did not make the tender documents available during the participation stage, the tender documents shall be sent to the economic operators invited to submit a tender simultaneously with the invitation to tender, or the address where the tender documents are made available in full by way of electronic means shall be indicated in the invitation to tender. (3) If the tender documents or descriptive documents are available at a place other than the contracting entity, or if this is justified for other reasons, by way of derogation from Subsection (2) the contracting entity shall specify in the invitation to tender the time limit within which the tender documents or descriptive documents must be obtained, as well as the place and financial conditions for purchasing them. In this case Subsection (3) of Section 50 also applies. Section 52 (1) The price of the tender documents shall be established on the basis of the costs of preparation and the costs of making them available to tenderers, in consideration of the procurement procedure. (2) The tender documents, and the price paid, shall be returned within ten days if: a) the contracting entity withdraws the contract notice, invitation to participate or invitation to tender; b) the procedure is declared unsuccessful pursuant to Paragraph c), d), f) or g) of Subsection (1) of Section 76; c) if the contracting entity fails to announce the results of the award procedure to the tenderers during the binding period, or fails to send out the invitations to tender to candidate tenderers by the time shown as the time limit for sending the invitation to tender. (3) In negotiated procedures without prior publication of a contract notice no remuneration may be requested for the tender documents. Section 53

The contracting entity - if did not make the tender documents available at the time the request to participate is submitted - may supply additional documents specifically for promoting the submission of responsive requests to participate, containing, in particular, information that may be necessary for candidate tenderers in the process of drawing up their requests to participate, as well as a list of certificates, statements and representations to be enclosed with the request to participate. Additional documents shall be made available to all economic operators in a way that is non-discriminatory, in due observation of the provisions on supplying tender documents; the contracting entity shall indicate in the invitation to participate the proposed method for making additional documents available. The contracting entity may prescribe in the invitation to participate that at least one candidate tenderer or subcontractor indicated in the request to participate is required to purchase or obtain the documents made available in the interest of drawing up the requests to participate, or to access them by way of electronic means, for each request submitted. Section 54 (1) With respect to public works contracts and public service contracts, the contracting entity may prescribe in the contract notice or invitation to tender for tenderers to obtain information concerning the requirements relating to taxation and environmental protection, health protection and equal treatment of people with disabilities, and must prescribe for them to obtain information relating to the protection of employees and occupational safety which are to be complied with at the place of performance throughout the life of the contract. Such information is available at the competent bodies and agencies free of charge. (2) If the contracting entity prescribed the requirement for obtaining the information mentioned in Subsection (1), it shall indicate in the tender documents the agencies (authorities), including name, address and other means of access, where tenderers may obtain the necessary information.

Chapter IX Requirements Relating to Tenderers and Candidate Tenderers Ability of Economic Operators to Execute the Contract
Section 55 (1) Economic operators wishing to submit a tender in a public procurement procedure must meet the minimum requirements (selection criteria) of the contracting entity relating to: a) professional qualifications, experience and education; b) technical conditions and requirements; c) quality assurance or environmental management measures standards; d) economic and financial standing; and may not be subject to any of the grounds for exclusion (Sections 56-57). The contracting entitys selection criteria must include at least one of the requirements under Paragraphs a)-c) (technical and/or professional abilities), and at least one of the requirements under Paragraph d) (financial and economic capacity). (2) The selection criteria and the documents required in proof of compliance with such requirements shall be accurately specified in the notice published for setting the procedure in motion. To this end, it shall expressly specify the existence, lack of or what degree of deficiency of certain circumstances in accordance with Subsection (1), based on which the contracting entity can exclude the tenderer or candidate tenderer from participating in the execution of the contract. (3) The selection criteria must be confined to the subject-matter of the contract where contracting entities may prescribe them - taking into consideration the estimated contract value - solely to the extent that is in fact necessary for the fulfillment of the contract.

(4) The prescribed selection criteria may be satisfied by groupings of tenderers or groupings of candidate tenderers collectively, or, as regards the requirements set out in Paragraph d) of Subsection (1) which can only apply to economic operators individually, it shall suffice if only one of them meets such requirements. (5) Tenderers and candidate tenderers may also satisfy the prescribed selection criteria relying on the capacities of other bodies (or persons), irrespective of the legal nature of the link between them. In that case, those bodies must be indicated in the tender, or in the request to participate in procedures comprising more than one stage, as well as the particular selection criteria - with reference to the relevant point of the notice published for setting the procedure in motion -, where the tenderer or candidate tenderer lays claim to the capacities of such body (as well). The body making available its capacities shall provide proof, using the same means prescribed for verification, concerning its ability to comply with the given requirement, and shall provide a statement verifying that it will have at its disposal the resources necessary for the execution of the contract, throughout the entire life of the contract. (6) The tenderer or candidate tenderer, for the purpose of verifying its suitability, shall be able to lay claim under Subsection (5) to the capacities of other bodies in the following cases: a) if planning to use the resources of other bodies, as shown in the process of verifying suitability, during the execution of the contract, and if providing a statement as to the means of using such resources, where showing the body in question as a subcontractor may be recognized as such statement, or b) if the selection criteria pertains to earlier supplies of goods and/or service, or public works, the tenderer (candidate tenderer) shall declare the means proposed for involving the body in performance whose particulars are used in the process of verifying suitability, and that makes it possible to use the professional experience of this other body in the performance of the contract, or c) in the interest of verifying economic and financial capabilities - in addition to what is contained in Paragraph a) - even if the tenderer (candidate tenderer) submits in its tender (request to participate) a statement from the body involved in verifying suitability, containing the guarantee of this other body for compensating the contracting entity for losses incurred upon the tenderers insolvency, due to lack of performance or defective performance on the tenderers part, and which could not have been recovered by means of calling other guarantees.

Grounds for Exclusion

Section 56 (1) Any economic operator may be excluded from participation in a contract as a tenderer, candidate tenderer, subcontractor, or in the attestation of competence where that economic operator: a) is being wound up, or a court ruling ordering the opening of bankruptcy proceedings has been published or if undergoing liquidation proceedings by final decision, or if the economic operator is adjudicated in a similar proceeding under national law, or who is in any analogous situation under national law; b) has suspended its activities or whose operations had been suspended; c) has been found guilty of a crime by final court verdict in connection with his economic or professional conduct, until exonerated from the detrimental consequences of having a criminal record; or whose activities are restrained for any period by final court verdict pursuant to Paragraph b) or g) of Subsection (2) of Section 5 of Act CIV of 2001 on Criminal Sanctions in Connection with the Criminal Liability of Legal Persons, or if the tenderers operations are restrained by final court order for similar reasons and by similar means; d) has been excluded for any period from participating in public procurement procedures, during the period of exclusion; e) has not fulfilled obligations relating to the payment of taxes, customs duties or social security contributions for over a year in accordance with the relevant legislation of the country in which he is established or with those of the country of the contracting entity, unless deferred payment has been authorized;

f) has been found guilty of serious misrepresentation in supplying false information in a public procurement procedure that has been concluded within three years, and was excluded from the procedure in consequence, until the end of the period specified in the final and binding decision; g) has been found guilty of any infringement of the requirement of distinguished labor relations under Paragraph a) of Subsection (1) of Section 50 of Act CXCV of 2011 on Public Finances: ga) by a final administrative ruling or, if reviewed, by final court decision adopted within the preceding two years subject to employment penalty, or default penalty under the Act on the Rules of Taxation for non-compliance with the obligation of notification of entering into an employment relationship, or gb) by a final administrative ruling or, if reviewed, by final court decision adopted within the preceding two years subject to payment order of a sum payable to the central budget, or to a penalty for the protection of public policy under the Act on the Admission and Residence of Third-Country Nationals for non-compliance with the employers obligation to apply for a work permit for the employment of a foreign national in Hungary, where such employment is subject to authorization; h) has committed any criminal act in affiliation with organized crime by definition of the Criminal Code, or if engaged in bribery or bribery in international relations, embezzlement, defalcation, budget fraud, in any violation of the financial interest of the European Communities, or if involved in money laundering operations, or any crime of similar nature under the laws of his home country, if found guilty of such crime by final court verdict which has the force of res judicata, until exonerated from the detrimental consequences of having a criminal record; i) failed to satisfy any payment obligation - established within two years by final and executable administrative ruling or court decision, within the time limit prescribed therein - in excess of 10 per cent of the amount shown in the final or progress invoice of a subcontractor in connection with a public contract awarded after 15 September 2010 upon a previous procurement procedure, in spite of receiving payment from the contracting entity, the other party to the contract in good time; j) has been found guilty of misrepresentation in supplying false information in the given public procurement procedure in violation of the provisions on disclosures, which might prejudice fair competition; k) is subject to either of the following: ka) he is established for tax purposes in a country other than an EU, EEA or OECD Member State or a state with which Hungary has an agreement on double taxation, or kb) his income from the activities related to the public contract would be taxed in the country where established for tax purposes under better rates (taking into account the final amount of income tax paid, after tax refunds and other deductibles) compared to the economic operators other income earned in the given country. This condition shall not apply if the economic operator proposes to execute the public contract through its branch registered in Hungary, and the income received under the contract would be shown as the branchs income, kc) being a company listed on a non-regulated exchange market, whose true owner cannot be identified according to Paragraph r) of Section 3 of Act CXXXVI of 2007 on the Prevention and Combating of Money Laundering and Terrorist Financing. (2) An economic operator in which a legal person or unincorporated business association controls directly or indirectly more than 25 per cent of the shares or voting rights shall not be admitted to the procedure as a tenderer or candidate tenderer, to whom the provisions under Paragraph k) of Subsection (1) apply. If the business association that controls over 25 per cent of the shares or voting rights is taxed as a partnership, the condition under Subparagraph ka) of Subsection (1) applies to the owner companies of such partnership. (3) The obligation for the payment of taxes mentioned under Paragraph e) of Subsection (1) shall be understood as tax liabilities shown on the records of the state tax authority and the customs authority on the accounts of resident economic operators.

(4) Affiliation with organized crime, bribery or bribery in international relations, any violation of the financial interest of the European Communities and crime similar in nature to money laundering referred to in Paragraph h) of Subsection (1) shall include, as regards tenderers established in any Member State of the European Union, participation in a criminal organization, as defined in Article 2(1) of Council Joint Action 98/733/JHA, corruption, as defined in Article 3 of the Council Act of 26 May 1997 and Article 3(1) of Council Joint Action 98/742/JHA respectively, fraud within the meaning of Article 1 of the Convention relating to the protection of the financial interests of the European Communities, and money laundering, as defined in Article 1 of Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering. (5) Where an economic operator meets the obligation prescribed by a binding administrative ruling or by a final court decision adopted upon the judicial review of an administrative ruling within the prescribed time limit or by the prescribed deadline, it shall have no bearing on the application of Paragraph g) of Subsection (1). (6) The contracting entity shall expressly indicate in the notice published for setting the procedure in motion the grounds for exclusion specified in Subsections (1) and (2). (7) The contracting entity shall notify the Kzbeszerzsi Hatsg ( Procurement Authority) on any exclusion carried out under Paragraph j) of Subsection (1), with the name and address (registered office or home address) of the tenderer, candidate tenderer, subcontractor or body participating in the attestation of competence affected, the subject matter and identifier of the procedure, and the date of exclusion indicated. Section 57 (1) The contracting entity may prescribe in the notice published for setting the procedure in motion that any economic operator may be excluded from participation in a contract as a tenderer, candidate tenderer, subcontractor, and in the attestation of competence where that economic operator: a) has been convicted of a misdemeanor offense concerning his economic or professional conduct by a final court decision made within the preceding five years; b) has been found guilty and sanctioned within the preceding five years of a legal offense committed in a public award procedure by final and executable decision of the economic competition authority under Section 11 of the Competition Act or under Article 101 of the Treaty on the Functioning of the European Union, or by final and executable court ruling passed in conclusion of the judicial review of the said decision of the competition authority; or if the tenderer has been condemned, and fined, for a similar misdemeanor offense by another competition authority or court within the preceding five years; c) has been condemned by a final administrative ruling or court decision for any breach of obligation in connection with a public procurement contract within the preceding two years; d) is not registered in the country where established; e) is not authorized in his home country to engage in the service to which the contract pertains, or is not listed in any of the professional or trade registers required; f) has been found guilty of severe criminal negligence defined by the relevant legislation or grave professional misconduct - established by ethics proceedings conducted by the competent trade organization prescribed by specific other legislation - within the preceding three years. (2) If the economic operator is authorized in his home country to provide the service to which the contract pertains, the contracting entity may not exclude him on the grounds of non-compliance with the legal and organizational requirements prescribed under national law (such as the requirement of having legal personality), or on the grounds that the service in question can be provided solely by natural persons under Hungarian law. (3) The time limits referred to in Paragraphs e)-g) and i) of Subsection (1) of Section 56, and in Paragraphs c) and f) of Subsection (1) of this Section shall in all cases apply from the time of verification whether or not any grounds for exclusion exist. In procedures comprising more than one stage the contracting entity shall carry out the

verification process between the time limit for the receipt of tenders and the time of sending notice of the results of the award procedure to tenderers.

Documents to be Submitted by Tenderers and Candidate Tenderers

Section 58 (1) The contracting entity may invite economic operators to submit certificates which are deemed necessary for the conduct of the public procurement procedure, or for the evaluation of tenders and requests to participate. These certificates are intended to enable the contracting entity to determine: a) the ability of tenderers or candidate tenderers to execute the contract awarded, the provision of financial guarantees as required and as to whether any grounds for exclusion exists; b) whether the goods and/or services, and the public works and building structures featured in the tenderers offer are in conformity with the contracting entitys requirements. (2) The Government shall decree the means of verification contracting entities may employ to confirm suitability and to check whether any grounds for exclusion exist, including the type of documents that may be required and those that must be accepted. (3) Tenderers and candidate tenderers shall only be liable to declare in their tenders, or - in procedures comprising more than one stage - in their request to participate, of not using any subcontractor for the performance of the contract to whom any of the grounds for exclusion under Section 56 apply, and that the body participating in the attestation of its competence is not subject to any of the grounds for exclusion under Section 56. (4) Contracting entities shall be entitled to request information from other public authorities or from economic operators with a view to checking the contents of certificates and statements submitted with tenders and requests to participate. The bodies and operators contacted shall supply the information requested within three working days. (5) With a view to determining the ability of tenderers and candidate tenderers and as to whether any grounds for their exclusion exist, contracting entities shall be entitled to process the personal identification data of natural persons referred to in the tenders or requests to participate, including their particulars on their skills and education, professional experience, any affiliation with any organization or public body, or membership in a business association. In the process of checking as to whether any grounds for exclusion exist, an official certificate may be requested - in accordance with the provisions of specific other legislation on verification - on having no prior criminal record. Certification of the statement required under specific other legislation to verify the lack of grounds for exclusion may be carried out by the relevant chamber of economy or professional association in which the tenderer is a member.

Deposits and Guarantees Required

Section 59 (1) The contracting entity may render participation in the procedure subject to the provision of a deposit or any other guarantee (for the purposes of this Section hereinafter referred to as guarantee). Tenderers shall make available the guarantee simultaneously upon submission of their offers, or by the deadline specified by the contracting entity in the contract notice or invitation to tender in the amount specified therein. Tenderers shall provide proof of having the guarantee made available to the contracting entity. The guarantee is intended to ensure that the tenderer maintains its tender; in the participation stage of a procedure participation may not be rendered contingent upon the provision of a guarantee. (2) Tenderers shall be given the option to provide the guarantee either by way of transfer to the contracting entitys payment account, by bank guarantee or in the form of a performance bond supplied by an insurance company under contract. The place of payment and the contracting entitys payment account number, and the method of evidencing such payment shall be defined in the contract notice or the invitation to tender.

(3) The amount of the guarantee shall be established in a manner which ensures equal opportunity to all tenderers and set so as to cover any costs and expenses incurred, as foreseeable, by the contracting entity in the event of infringement of the parties contractual obligations as described in Subsection (4), or in the event of the tenderer withdrawing his tender within the binding period or if contracting fails due to reasons attributable to the tenderer. Where tendering is permitted for individual lots, the contracting entity shall demand and shall specify the amount of financial guarantees separately for each lot. (4) A tenderers guarantee shall be construed as forfeited and claimed by the contracting entity as such, in the event that the tenderer withdraws his offer within the binding period, or if contracting fails for reasons attributable to the tenderer. (5) The amount deposited shall be returned: a) to tenderers within ten days of withdrawal of the contract notice or invitation to tender, of disqualification of the tender submitted, or after sending the notice of the results of the award procedure; b) to the successful tenderer, or in the case set out in Subsection (4) of Section 124 to the tenderer rated second, within ten days of signing the contract, unless the contract notice stipulates that the guarantee be retained and transferred as a security for the contract concluded. (6) The contracting entity, if rendering participation in the procedure conditional upon the provision of a guarantee, shall repay the amount of guarantee in double the amount if deposited in cash, or make a refund in the same amount in other cases within ten days: a) to the tenderers if it fails to announce the result of the procedure within the binding period indicated in the contract notice, or within the extended binding period, where applicable; b) to the successful tenderer, or in the case set out in Subsection (4) of Section 124 to the tenderer rated second, if it fails to conclude the contract. (7) If - pursuant to Subsection (2) of Section 65 - the contracting entity invites the tenderers to maintain their tenders further, and if either or all of the tenderers refuse to comply, the amount of the guarantee shall be repaid Subsection (6) notwithstanding - within ten days of receipt of the tenderers statement, or after the time of sending the notice of the results of the award procedure to the tenderers. The contracting entity shall invite - under Subsection (2) of Section 65 - the tenderers who decided to maintain their tenders to maintain the guarantee as well for the extended binding period, in the amount previously deposited.

Chapter X Provisions Relating to Tenders and Requests to Participate, Including Their Submission and Opening
Section 60 (1) Tenderers shall prepare their tenders in accordance with the formal and content requirements defined in the contract notice (invitation to tender), or in the invitation to tender or to participate in the case of procedures comprising more than one stage, and in the tender documents. (2) In procedures comprising more than one stage, candidate tenderers shall prepare and submit their requests to participate in accordance with the formal and content requirements defined in the invitation to participate. (3) Tenders shall include the tenderers express declaration concerning the conditions of the contract notice or the invitation to tender, the conclusion and fulfillment of the contract and the amount of consideration requested. (4) The requests to participate submitted by candidate tenderers may not contain an offer.

(5) In the tender or the request to participate in procedures comprising more than one stage, the tenderer or candidate tenderer shall - in addition to the submission of other documents as prescribed - specify whether he is recognized as a micro, a small or a medium-sized enterprise according to the Act on Small and Medium-sized Enterprises and the Support Provided to Such Enterprises. (6) Tenders and requests to participate shall contain an information sheet, containing the information referred to in Subsection (3) of Section 62 in the case of tenders, and the information referred to in Subsection (5) of Section 62 in the case of requests to participate. (7) Tenderers and candidate tenderers may revise or withdraw their tender or request to participate prior to the time limit for the receipt of tenders and the time limit for participation. (8) The provisions on the different types of public procurement procedures shall also apply to the time frame during which the tenderer must maintain the tender. Section 61 (1) Tenders and requests to participate shall be submitted in writing, sealed up, deposited at or mailed to, the address indicated in the contract notice, invitation to tender or participate, within the time limit for the receipt of tenders or for participation. (2) The contracting entity may permit tenders and requests to participate submitted by ways other than what is contained in Subsection (1) above, if able to ensure that they will not be opened before the time limit for the receipt of tenders or for participation and to keep them out of the reach of any unauthorized party associated with the contracting entity. (3) Tenders and requests to participate submitted past the time limit may be opened in the interest of determining the identity of the tenderer or the candidate tenderer, and it shall be recorded in minutes. Section 62 (1) Opening the tenders or requests to participate shall commence immediately following the deadline for the receipt of tenders or for participation and shall continue without intermission until all tenders or requests to participate received by the deadline are opened. (2) The opening procedure may be attended by the contracting entity, the tenderers, the person they have invited, and the representatives of agencies and other persons defined in specific other legislation where the contracting entity has received any financial aid for the public procurement in question. (3) The names and addresses (registered address, home address) of tenderers, and the quantified figures of key importance, which comprise part of the criteria (evaluation factors) based on which to award the contract shall be announced in the course of opening the tenders. (4) Contracting entities before beginning the opening of tenders - or final tenders in negotiated procedures -, shall disclose immediately before the opening of tenders the amount of funding available for the contract. (5) The names and addresses (registered address, home address) of candidate tenderers shall be announced in the course of opening the requests to participate. (6) If so requested at the time of the opening of tenders by a person - referred to in Subsection (2) - attending, access shall be provided immediately after reading the tender to the information sheet referred to in Subsection (6) of Section 60. (7) The contracting entity shall record events of the opening of tenders and requests to participate submitted by means other than electronic, and the disclosure of data in minutes, a copy of which shall be sent to all tenderers and candidate tenderers within five days following the date of the opening procedure.

Chapter XI Evaluation of Tenders and Requests to Participate

Section 63 (1) In the evaluation procedure the contracting entity shall examine the tenders for compliance with the terms and conditions defined in the contract notice (invitation to tender), or in the invitation to participate and tender in procedures comprising more than one stage, and in the tender documents, and the requirements laid down by the relevant legislation. (2) In single-stage procedures the suitability or unsuitability of tenderers to perform the contract shall be determined based on the criteria specified in the contract notice or the invitation to tender. (3) The responsibility for establishing if there are any tenders which are deemed disqualified and if there is any tenderer who is to be excluded from the procedure lies with the contracting entity. (4) Valid tenders shall be assessed based on the criteria specified in the notice published for setting the procedure in motion for the award of contracts (Section 71), and in due consideration of what is contained in Sections 71-73. Section 64 (1) In the evaluation procedure the contracting entity shall examine the requests to participate for compliance with the terms and conditions defined in the invitation to participate, and in the requirements laid down by the relevant legislation. (2) The suitability or unsuitability of candidate tenderers to perform the contract shall be determined based on the criteria specified in the invitation to participate. (3) The responsibility for establishing if there are any requests to participate which are deemed disqualified and if there is any candidate tenderer who is to be excluded from the procedure lies with the contracting entity. Section 65 (1) The contracting entity shall evaluate tenders at the earliest opportunity, and shall carry out the evaluation procedure in a timeframe so as to inform tenderers of the decision reached concerning the award of a contract within the binding period. (2) In justified cases, the contracting entity may invite tenderers - before the expiry of the binding period - to maintain their tenders further, for a specific time beyond the binding period, however, the binding period may not be extended by more than sixty days past the date of expiry of the initial binding period. If a tenderer fails to respond within the time limit the contracting entity has specified, it shall be deemed that the tenderer has agreed to maintain the tender up to the time specified by the contracting entity. If either of the tenderers refuse to maintain his tender, following the expiry of the initial binding period the tender submitted by such tenderer shall be disqualified from the procedure. (3) The contracting entity shall evaluate requests to participate at the earliest opportunity, and shall carry out the evaluation procedure in a timeframe so as to inform candidate tenderers of the results of the participation stage before the date of dispatch of invitations to tender shown in the invitation to participate. (4) In justified cases, the contracting entity may postpone to dispatch the invitations to tender by not more than thirty days from the time previously indicated, in this case, however, notice shall be sent before the expiry of the initial date to all candidate tenderers simultaneously, concerning the new date set for dispatching the invitation to tender, and candidate tenderers shall be informed of the results of the participation stage beforehand. Section 66

(1) The contracting entity shall evaluate all tenders and requests to participate, with the exception if unable to conclude the contract, or fulfill the contract awarded, due to any unforeseen and unavoidable circumstance beyond its control that has occurred following the opening of the procurement procedure or during the tendering stage of procedures comprising more than one stage, after the time limit for the receipt of tenders. In this case the contracting entity shall declare the procedure unsuccessful. (2) In negotiated procedures and competitive dialogues, the contracting entity shall conclude the negotiations or the dialogue at the earliest opportunity, with the exception if unable to conclude the contract, or fulfill the contract awarded, due to any unforeseen and unavoidable circumstance beyond its control that has occurred following the time limit for the receipt of tenders. In this case the contracting entity shall declare the procedure unsuccessful.

Remedying Deficiencies and Requesting Specific Information from Tenderers and Candidate Tenderers
Section 67 (1) The contracting entity shall permit the possibility for remedying deficiencies to all tenderers and candidate tenderers under the same terms and conditions, and may request specific information from tenderers and candidate tenderers to clarify the meaning of unclear statements, declarations, representations and certificates found in tenders or requests to participate. (2) The contracting entity shall send the request for remedying deficiencies or for supplying specific information to tenderers or candidate tenderers and shall simultaneously and directly notify all other tenderers or candidate tenderers thereof, indicating the time limit and the deficiencies that require remedying. (3) The remedying of deficiencies - which may include the amendment and supplementing of documents enclosed with the tender or request to participate - shall be limited to making the tender or request to participate conforming to the requirements set out in the contract notice, invitation to participate, invitation to tender or the tender documents, or to the provisions of the relevant legislation. Remedying deficiencies may not include the involvement of a new economic operator. In the process of remedying deficiencies, in the event of non-compliance with the provisions of Section 26, an economic operator shown as a subcontractor in the tender, or in the request to participate in procedures comprising more than one stage, may be recognized as a joint tenderer, or a joint candidate tenderer in the participation stage of procedures comprising more than one stage. (4) In so far as the remedying of deficiencies or supplying specific information is in progress with respect to any tenderer or candidate tenderer within the time limit specified in the request or notice referred to in Subsection (2), the tenderer or candidate tenderer may also remedy other deficiencies that the contracting entity did not specifically indicate. (5) The contracting entity must request further information where any discrepancies remain following previous disclosures. Any specific information that was requested previously may not be supplied in any subsequent procedure for remedying deficiencies. (6) Requesting information shall be done in accordance with Subsections (1)-(2), and the information the contracting entity has requested shall be limited to those deemed necessary for the evaluation of tenders or requests to participate, and the request for information may not have as its objective to initiate negotiations with tenderers or candidate tenderers. (7) Remedying deficiencies or supplying specific information: a) shall be done without prejudice to the basic principles specified in Subsections (1)-(4) of Section 2, or b) may not result in any breach of the binding period, notably, it may not entail any change in the offer made with respect to the subject-matter of the procurement or in the terms and conditions of the contract (hereinafter referred to as technical terms and conditions).

(8) By way of derogation from Paragraph b) of Subsection (7), the process of remedying deficiencies or supplying specific information may involve the revision of any error in the tender that is considered minor, that pertains to certain details, and that - if changed - will have no impact on the full contract price or on price of the lot affected, nor on competition between tenderers and the ranking of tenderers determined upon evaluation [Subsection (4) of Section 63]. (9) The contracting entity shall ascertain whether deficiencies had been remedied and information had been supplied in accordance with Subsections (3) and (7). If there is any violation of Subsection (3) or (7), or if the missing information is not supplied or discrepancies are not remedied to satisfaction in due time, within the prescribed time limit, only the original copy (copies) of the tender or request to participate shall be processed for evaluation.

Calculation Errors in Tenders and Unrealistic Constituent Elements

Section 68 If the contracting entity finds in the tender any obvious calculation error that may have an impact upon the outcome of the evaluation conducted according to Subsection (4) of Section 63, it shall be corrected by the contracting entity by applying the values specified for each item (basic data) of the subject matter of the procurement, or any other data resulting from calculations found in the tender, to compute the aggregate price. Tenderers shall be notified simultaneously and directly on any correction of calculation errors in writing and without delay. Section 69 (1) The contracting entity shall request, in writing, details of the constituent elements of the tender which it considers relevant for evaluation purposes, including an explanation, and shall communicate this request in writing to all other tenderers at the same time, if the consideration quoted in a tender appears to be abnormally low in light of the subject-matter of the contract relative to the sum payable in consideration, that is to be evaluated separately according to Section 71. (2) Concerning the examination of abnormally low tenders the contracting entity shall rely on previous experience, on the results of market surveys conducted before the procurement procedure or any other data and information used to determine the amount of funding necessary before the procurement procedure. The contracting entity shall proceed according to Subsection (1) particularly if the total price quoted in the tender - as referred to in Subsection (1) - differs by more than twenty percentage points from the amount of funding available to the contracting entity in relation to any element that is to be evaluated individually. (3) The contracting entity shall verify the substance of constituent elements, and shall determine whether they can be performed taking account of the explanations received and the documents available. If the explanation is found insufficient, the contracting entity shall request additional information from the tenderer in writing concerning the constituent elements disputed so as to make an informed decision. The tenderer is required to supply to the contracting entity any and all fact, data and calculation to support the validity of the price quoted in the tender, so as to enable the contracting entity to render a decision upon weighing the information received concerning the validity of the price quoted. (4) The contracting entity may take into consideration objective explanations relating in particular to: a) the economics of the manufacturing process, of the services provided and of the construction method; b) the technical solutions chosen; c) any exceptionally favorable conditions available to the tenderer; d) the originality of the supplies, services or work proposed by the tenderer;

e) compliance with the provisions relating to employment protection and working conditions in force at the place where the work, service or supply is to be performed; or f) the possibility of the tenderer obtaining State aid. (5) The contracting entity shall reject the tender if it considers that the explanation is unsatisfactory or economically unfeasible. (6) An explanation shall be deemed economically unfeasible, in particular if the offer price - in light of the labor charges deemed necessary for the execution of the contract - is insufficient to cover the wage costs and the related public dues as defined in specific other legislation or in the collective agreement, or in the contracts specified by the Minister - within one year prior to the date when notice of the results of the award procedure is sent to tenderers covering the given sector or sub-sector. In examining the tender as to merits, the contracting entity shall be entitled to request information from the tenderer concerning such wage costs as well. (7) Where this is necessary for the decision under Subsection (5) in examining the tender as to merits, the contracting entity may request information underpinning certain specific constituent elements from the other tenderers for reasons of comparison. (8) Where a contracting entity establishes that a tender is abnormally low because the tenderer has obtained State aid, the tender can be rejected on that ground alone only after requesting information from the tenderer in writing in this respect and if the tenderer is unable to prove that the State aid in question was granted legally. Where the contracting entity rejects a tender in these circumstances, it shall inform the European Commission of that fact through the Kzbeszerzsi Hatsg (Procurement Authority). Section 70 (1) If any constituent element of a tender appears to be impossible based on the evaluation factors, or excessively high or excessively low, or contains an abnormally disproportionate commitment, the contracting entity shall request, in writing, additional information and an explanation concerning the constituent elements in question. The contracting entity shall communicate this request in writing to all other tenderers at the same time. (2) The contracting entity shall verify the validity of constituent elements, and shall determine whether they can be performed taking account of the explanations received and the documents available and - if there is any disagreement concerning certain constituent elements - it shall request additional information from the tenderer in writing. (3) The contracting entity shall reject the tender if it deems the explanation unsatisfactory or economically unfeasible.

Criteria to be Applied in the Evaluation of Tenders

Section 71 (1) The contracting entity must indicate in the notice published for setting the procedure in motion the criteria based on which to award the contract. (2) The criteria for the award of contracts shall be either: a) the lowest price only; or b) selecting the most economically advantageous tender. (3) The contracting entity, when the award is made to the most economically advantageous tender, shall define: a) the evaluation factors based on which to select the most economically advantageous tender;

b) the rated multiplier of each evaluation factor to determine its weight, as consistent with the actual significance of such factor (hereinafter referred to as index number); c) the lowest and highest number of evaluation points, to be the same for all constituents, according to the constituent elements of tenders when evaluating according to evaluation factors; d) the procedure (procedures) to determine the number of points granted within the predetermined range of evaluation points [Paragraph c)]. (4) Contracting entities shall define the evaluation factors referred to in Paragraph a) of Subsection (3) according to the following criteria: a) the requirements of suitability set out in Subsection (1) of Section 55 which tenderers are required to meet for the execution of the contract cannot be comprised in the evaluation factors; b) the evaluation factors must cover the criteria for the size of consideration; c) evaluation factors shall be based on quantitative or some other type of concrete technical criteria according to the subject-matter of the procurement and the terms of the contract (in addition to the price, such as quality, technical merit, aesthetic and functional characteristics, sustainability and environmental characteristics, running costs, profitability, cost-effectiveness, after-sales service and technical assistance, commitments with regard to spare parts, security of supplies, delivery date and period for completion), furthermore, the evaluation factors shall cover the potential offered in the tender to recruit unemployed persons and long-term job-seekers in carrying out the public contract; d) different evaluation factors must not contain stipulations for the same constituent element; e) where an evaluation factor contains any secondary factors, the index number of each secondary factor - to reflect its actual importance - must be indicated as well. Where the contracting entity specifies - in connection with any technical evaluation factor - the components or characteristics of the constituent element connected to the evaluation factor in the description of the procedure referred to in Paragraph d) of Subsection (3), it shall not be recognized as a secondary factor. (5) The specifications under Subsection (3) shall be contained in the notice published for setting the procedure in motion [in the case of Paragraphs c) and d) under the miscellaneous section]. The detailed explanation of the procedure (procedures) referred to in Paragraph d) may be published in the tender documents. (6) The Kzbeszerzsi Hatsg (Procurement Authority) shall deliver its opinion regarding the procedures referred to in Paragraph d) of Subsection (3) and the evaluation of tenders. (7) Contracting entities, in connection with constituent elements related to any evaluation factor (secondary factor) other than award criteria or evaluation factor (secondary factor) pertaining to remuneration, shall be entitled to define in the notice published for setting the procedure in motion the most advantageous level of a given constituent element that, and any tender offering better terms, will be rewarded with the highest number of points under Paragraph c) of Subsection (3), and may install a clause of expectation that a given constituent element shall not be less favorable. Section 72 (1) The contracting entity, when the award is made to the most economically advantageous tender, shall evaluate the constituent elements according to the point system specified in the notice published for setting the procedure in motion by the procedure defined in Paragraph d) of Subsection (3) of Section 71, and shall multiply the number of points awarded for each constituent element by the index number, and shall total the results separately for each tender. The tender with the highest points shall be considered the most economically advantageous. (2) If there are several tenders with the same point total calculated according to Subsection (1), the tender quoting the lowest price shall be considered the most economically advantageous, or, in the case of same contract prices, the

tender that received more points for a constituent element with the highest index number in respect of constituent elements which did not receive the same amount of evaluation points. (3) The contracting entity shall be entitled to hold a drawing in the presence of a notary public and to award the contract to the tenderer selected by the drawing, if: a) the contracting entity intends to select the lowest price tendered, however, the lowest price is quoted in the same amount in two or more tenders; or b) the criteria for the award of contract is selecting the most economically advantageous tender, however, the most economically advantageous tender cannot be determined under Subsection (2). (4) The contract shall be awarded by way of drawing among tenderers offering the lowest price under Paragraph a) of Subsection (3) or among the tenderers receiving the highest point total and point sub-total under Paragraph b) of Subsection (3). (5) The contracting entity may use electronic auction following the evaluation of tenders if so indicated in the contract notice or invitation to tender in advance. The detailed regulations for electronic auctions shall be laid down in specific other legislation. Section 73 The tenderer whose tender contains the best offer in accordance with one of the evaluation factors described in Subsection (2) of Section 71 and on the basis of the conditions specified in the contract notice - or in the invitation to tender in procedures comprising more than one stage - and in the tender documents shall be declared winner of the award procedure.

Disqualification of Tenders and Requests to Participate

Section 74 (1) A tender or request to participate shall be rejected if: a) submitted beyond the time limit for the receipt of tenders or the time limit for participation; b) the tenderer or candidate tenderer, or any subcontractor, or a body participating in the attestation of competence shown in the tender or requests to participate fails to comply with the provisions concerning conflict of interest (Section 24); c) the tenderer or candidate tenderer, or any subcontractor, or a body participating in the attestation of competence shown in the tender or requests to participate has been excluded from the procedure; d) the tenderer or candidate tenderer is unable to meet the requirements for suitability prescribed for contract performance; e) it fails to conform with the terms and conditions defined in the contract notice or requests to participate, or in the tender documents, or the provisions of the relevant legislation in any other way, other than the formal requirements prescribed by the contracting entity for requests to participate and tenders. (2) In addition to what is contained in Subsection (1), a tender shall be rejected if: a) the price indicated therein is abnormally low (Section 69); b) any constituent element appears to be impossible, or excessively high or excessively low, or contains an abnormally disproportionate commitment (Section 70);

c) the tenderer in question has failed to provide the financial guarantee required by the deadline prescribed in the tender notice, or provided the guarantee below the amount required. (3) In addition to what is contained in Subsection (1), a request to participate shall be rejected if the candidate tenderer makes an offer. (4) The contracting entity shall not be required to evaluate any tender that has been rejected. Section 75 (1) The contracting entity shall exclude from participation in the procedure any tenderer, candidate tenderer, subcontractor or a body participating in the attestation of competence shown: a) to whom any of the grounds for exclusion under Sections 56-57 apply; b) in respect of whom a reason for exclusion has arisen in the course of the procedure (Sections 56-57). (2) The contracting entity may exclude from the procedure: a) any tenderer or candidate tenderer who is not eligible to receive national treatment [Subsection (5) of Section 2]; b) any tenderer whose tender contains goods which are not eligible to receive national treatment due to their origin [Subsection (5) of Section 2]. (3) The origin of goods shall be determined according to the provisions laid down in specific other legislation and in the Council Regulation establishing the Community Customs Code. (4) The Government is vested with powers to specify certain conditions and requirements to be considered binding upon the budgetary authorities it controls and also upon State-owned economic operators, underlying the application of Subsection (2).

Public Procurement Procedures Declared Unsuccessful

Section 76 (1) The award procedure shall be deemed unsuccessful, if: a) no tender, or request to participate during the participation stage of procedures comprising more than one stage, was received; b) all received tenders or requests to participate were rejected; c) the contracting entity deemed all tenders - including the one received from the tenderer submitting the most economically advantageous tender - unacceptable in view of the financial means the contracting entity has available; d) so declared by the contracting entity due to its being rendered unable to conclude or fulfill the contract [Subsection (1) of Section 66, Subsection (3) of Section 44]; e) the contracting entity decided to cancel the procedure due to any conduct of one of the tenderers or candidate tenderers gravely violating the fairness of the procedure or the interests of other tenderers or candidate tenderers; f) in the case under Subsection (2) of Section 65, the binding period of all tenders submitted has expired, and neither of the tenderers have agreed to maintain their tender; g) the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) overrules a decision of the contracting entity, and in consequence the contracting entity decides to launch a new procurement procedure or to cancel the procedure altogether, however, the contracting entity shall not declare the procedure unsuccessful if the

legality of the procedure can be restored by rendering a lawful decision following the annulment of the decision adopted in conclusion of the procedure that was declared unlawful. (2) If the contracting entity allowed tendering for several lots, the public procurement procedure may only be declared unsuccessful with respect to the lot to which the underlying reason pertains. If the contracting entity has included a clause in the notice published for setting the procedure in motion that having either of the lots declared unsuccessful renders awarding of the contracts unfeasible, the procedure shall be declared unsuccessful with respect to all lots.

Information on the Contracting Entitys Decisions, Pre-Contractual Remedies

Section 77 (1) The contracting entity shall inform in writing tenderers or candidate tenderers concerning the results of the procedure, or the participation stage of the procedure, or if the procedure was declared unsuccessful, on the exclusion of any tenderer or candidate tenderer, as well as those declared unsuitable to perform the contract or whose tender or request to participate is rejected for other reasons in accordance with Section 74, including the detailed reasons. at the earliest opportunity, in any case within not more than three working days of the date on which the respective decision was made. (2) Upon conclusion of the evaluation of tenders and requests to participate, the contracting entity shall draw up a written report on the tenders and requests to participate received in accordance with the model set out in specific other legislation. Upon conclusion of the evaluation of tenders and requests to participate, the contracting entity shall provide the information referred to in Subsection (1) by way sending the written report to all tenderers, and all candidate tenderers upon conclusion of the participation stage, simultaneously by way of fax or electronic means. (3) Where the award procedure is deemed inconclusive according to Paragraph d) of Subsection (1) of Section 76, the contracting entity shall make known the amount of funding proposed for the public contract, and, if applicable, when and why the funds had been withdrawn or re-appropriated. (4) The written report made on requests to participate shall contain an explanation of the suitability or unsuitability of candidate tenderers based on the selection criteria laid down in the invitation to participate. (5) The report made on the evaluation tenders shall be delivered, upon request, to the European Commission and the Kzbeszerzsi Hatsg (Procurement Authority), and to the representatives of agencies defined in specific other legislation where the contracting entity has received any financial aid for the public procurement in question. The report shall be sent to the European Commission through the Kzbeszerzsi Hatsg. (6) The report made on the evaluation tenders shall be delivered, simultaneously with having them delivered to the candidate tenderers, to the Kzbeszerzsi Hatsg in all cases, and - upon request - to the representatives of agencies specified in specific other legislation where the contracting entity has received any financial aid for the public procurement in question. Section 78 (1) The contracting entity shall have the right to modify the written report made on the evaluation tenders within twenty days following the date of having it delivered to tenderers on one occasion, to withdraw the notice for declaring the procedure unsuccessful, where applicable, and to cancel the contract already awarded, or to terminate the contract effective immediately if no restitution is available, when it considers after the award procedure that the result announced or having declared the procedure unsuccessful is unlawful and if the modification is able to remedy the infringement. The contracting entity shall forthwith send a copy of the corrected version simultaneously to all tenderers by way of fax or electronic means. (2) The contracting entity shall have the right to modify the written report made on the evaluation tenders between the time of having it delivered to candidate tenderers and the time limit for the receipt of tenders on one occasion, to withdraw the notice for declaring the procedure unsuccessful, where applicable, and to send an invitation to tender to

candidate tenderers with a new time limit for the receipt of tenders when it considers after the award procedure that the result announced or having declared the procedure unsuccessful is unlawful and if the modification is able to remedy the infringement. The contracting entity shall forthwith send a copy of the corrected version simultaneously to all candidate tenderers by way of fax or electronic means. (3) The contracting entity shall be entitled to correct any typing error found in the written report made on the tenders or requests to participate concerning a name or number, or any calculation error or other similar typographical error found in the report upon request or on its own motion. The contracting entity shall send a copy of the corrected version simultaneously to all tenderers or candidate tenderers concerned within ten days following the time of delivery of the notice of the results of the award procedure or the results of the participation stage. Section 79 (1) Pre-contractual remedy may be pursued: a) by the tenderer or candidate tenderer within three working days from the time of gaining knowledge of the infringement, if in his opinion the written report is unlawful in whole or in part, or if any action the contracting entity has taken during the public procurement procedure or any document of the procedure - other than those mentioned in Paragraph b) - is unlawful; b) by any economic operator affected or any chamber or trade organization active in the area covered by the contract (hereinafter referred to collectively as notifier) within ten days before the time limit for the receipt of tenders or the time limit for participation, or in accelerated procedures or negotiated procedures without prior publication of a contract notice opened on imperative grounds of urgency, before the said time limits, if in his opinion the contract notice, invitation to tender or invitation to participate, or the tender documents or any amendment thereof is unlawful in whole or in part. (2) The request submitted by the party requesting pre-contractual remedies to the contracting entity (hereinafter referred to as request for pre-contractual remedies) shall indicate the part of the written report , other document or action disputed, including the requesting partys recommendation, comment, and any data and circumstance in support of his claim, or reference to any documentary evidence, if any. (3) The request for pre-contractual remedies shall be sent to the contracting entity by way of fax or electronic means, upon which the contracting entity shall communicate its position regarding the request to the party pursuing pre-contractual remedies within three working days following receipt of the request by the same means as it was submitted, and shall inform all known tenderers or candidate tenderers participating in the procedure if a request for pre-contractual remedies has been submitted, including its reply. (4) The contracting entity is entitled to request - within three working days upon receipt of a request for precontractual remedies - on one occasion tenderers (candidate tenderers) to remedy deficiencies (Section 67), to supply information (Section 67) or to submit explanation (Sections 69-70) within three working days, even if this would not be possible under the rules of the procedure, provided that the infringement committed during the proceedings can be remedied by way of such actions. In this case, the contracting entity shall notify - by way of fax or electronic means the tenderers (candidate tenderers) that a request for pre-contractual remedies has been submitted in the notice for remedying deficiencies or for requesting information or explanation, and shall communicate its reply to the requesting party and the tenderers (candidate tenderers) within seven working days from the time of receipt of the request. (5) Where a request for pre-contractual remedies has been submitted within the time limit specified in Subsection (1) in accordance with the provisions of Subsection (2) by either of the tenderers in connection with any action carried out or any document made after the opening of tenders, the contracting entity may not award the contract during the period beginning on the day when the request was submitted and ending upon the expiry of the ten-day time limit for reply, or - if tendering for individual lots was permitted - may not conclude the contract for the lot affected, if the standstill period is otherwise set to expire by that time.

Publicity of Tenders and Request to Participate, Commercial Confidentiality

Section 80 (1) Tenderers and candidate tenderers may prohibit the disclosure of documents containing business secrets [Subsection (2) of Section 81 of the Civil Code], enclosed separately in their tenders or requests to participate, and in explanations under Sections 69-70, to the general public. Documents containing business secrets are to be prepared so as not to contain any of the elements referred to in Subsections (2)-(3). (2) Tenderers may not restrict the disclosure of their name and address (registered office or home address), nor any fact, information, solution or data (hereinafter referred to collectively as data) to the public, which comprise part of the criteria based on which to award the contract in accordance with Section 71, however, they shall be able to restrict the publication of certain information segments and basic data which are not covered by Subsection (3) (such as the itemized schedule of works and costs). (3) The publication of any information that is declared by specific other legislation to be information of public interest or public information and as such is rendered subject to disclosure may not be restricted or prohibited on the grounds of being treated as a business secret. Any clause contained in a contract concluded following an award procedure disallowing assignment shall not be treated as a business secret. (4) Following delivery of the report made on the evaluation of tenders (requests to participate), the publication of any data covered by Subsections (2)-(3) may not be restricted or prohibited on the grounds of being treated as a business secret. To this end, the tenderer (candidate tenderer) may request access to those parts of the tenders (requests to participate) submitted by other tenderers (candidate tenderers) which are not treated as business secrets, during which they shall be allowed to take notes. Access to the said documents shall be provided during regular business hours, on the day proposed by the requesting party. Section 81 At the request of any tenderer whose tender was not rejected, the contracting entity shall provide information concerning the winning tender and the benefits it offers relative to the requesting tenderers tender within five working days, taking into consideration the legitimate interest of the successful tenderer as regards the protection of its business secrets.

Chapter XII Types of Public Procurement Procedures

Section 82 (1) Public procurement procedures may be held in the form of open, restricted or negotiated procedures, or competitive dialogue. Negotiated procedures and competitive dialogue may be held only if so permitted in this Chapter. Negotiated procedures may be opened with or without prior publication of a contract notice. (2) Contracting entities may award contracts on the basis of a framework agreement. (3) The contracting entity may set up and operate a dynamic purchasing system for the purpose of selecting tenderers for admission to participate in the award procedure of certain specific public contracts in advance. The detailed regulations concerning the dynamic purchasing system shall be laid down in specific other legislation. (4) Switching from one type of public procurement procedure to another is not allowed.

Open Procedures
Section 83

(1) Open procedures are those single -stage contract award procedures whereby any interested economic operator may submit a tender. (2) Open procedures shall commence upon publication of a contract notice. (3) Tenderers shall supply enclosed with their tender the relevant documents relating to grounds for exclusion and to the attestation of competence in compliance with the contract notice and the tender documents, and in accordance with the relevant provisions of this Act. In open procedures no negotiations are allowed. (4) In the contract notice the contracting entity may not set the time limit for the receipt of tenders at less than forty-five days from the date of dispatch of the notice containing the contract notice. (5) The time limit for the receipt of tenders referred to in Subsection (4) may be replaced by a shorter period, if the contracting entity has dispatched the notice containing the prior summary information drafted in accordance with the prescribed model contract notice within a minimum of fifty-two days and a maximum of twelve months before the date on which the contract notice was published, provided that the notice contained the information referred to in the model notice as was available at the time of publication of the notice, however, the time limit for the receipt of tenders may not be shorter than twenty-nine days from the date on which the contract notice was published, except in cases of urgency, where the time limit for the receipt of tenders may be reduced to twenty-two days. (6) The forty-five day or twenty-nine day time limit for the receipt of tenders may be further reduced by maximum five days, if the contracting entity makes available to tenderers the complete set of tender documents free of charge by way of electronic means from the date of publication of the tender notice and if the tender notice contains information as to access. (7) In open procedures the contracting entity shall be bound by the conditions laid down in the tender notice and in the tender documents (contracting entitys commitment), and the tenderer shall be bound by his offer (tenderers commitment) from the expiry of the time limit for the receipt of tenders. The contracting entity may not specify in the contract notice the period during which the tenderer is bound to keep open his tender in excess of thirty days from the time of commencement thereof, or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation.

Restricted Procedures
Section 84 (1) Restricted procedures are two-stage public procurement procedures, where the contracting entity evaluates in the first (participation stage) the suitability or unsuitability of candidate tenderers for performance of the contract. In the second (tendering stage) of the procedure only those economic operators deemed suitable and invited by the contracting entity may submit a tender. In restricted procedure no negotiations are allowed. (2) Restricted procedures shall commence upon publication of an invitation to participate. (3) In the participation stage any interested economic operator may submit a request to participate, during the participation stage candidate tenderers may not submit a tender. (4) In the invitation to participate the contracting entity may indicate the maximum number of suitable tenderers to be selected during the second stage of the procedure from among the successful candidates requesting to participate, to whom it will send an invitation to submit a tender. The aforementioned limit shall cover at least five tenderers, and shall be sufficient to ensure genuine competition. (5) Where the number of participants is limited the contracting entity shall specify in the invitation to participate the criteria based on which to choose between the successful candidates in the case if in excess of the limit. Selection criteria may be of a technical nature or within the range of professional qualifications required for the fulfillment of the contract. Section 85

(1) In restricted procedures the contracting entity may not set the time limit for participation at less than thirty days from the date of dispatch of the notice containing the invitation to participate. (2) In exceptionally justified cases and on imperative grounds of urgency the contracting entity shall be entitled to set the time limit for participation shorter than that specified in Subsection (1), however, it may not be less than ten days from the date of dispatch of the notice containing the invitation to participate (accelerated procedure). The contracting entity shall communicate the reason for using the accelerated procedure in the contract notice. (3) The contracting entity may not set the date of dispatch of the invitation to tender in excess of thirty days, or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation, following the opening of the requests to participate. Section 86 (1) If the participation stage is successful, the contracting entity shall dispatch the invitation to tender in writing to all candidate tenderers selected within five working days after the results are communicated to the tenderers, or on the basis of technical or professional capacities if the contracting entity has defined the maximum number of tenderers to be selected from among the successful candidates. (2) If the number of suitable candidates remains below the minimum to be admitted, the contracting entity shall invite the candidates selected to submit their tenders. The candidates invited to tender may not submit a tender jointly. Section 87 (1) Invitations to tender shall inter alia contain the following information: a) name, address, telephone and fax number (e-mail) of the contracting entity; b) reference to the invitation to participate and the date of publication; c) the way to obtain tender documents, the deadline by which to obtain them, and the place and financial conditions of purchasing them, if the contracting entity did not provide this information in the invitation to participate and if it did not send the documents with the invitation to tender; d) consistent with the invitation to participate, a description of the certificates and statements and documents to be enclosed with the tender - if necessary - and accepted as sufficient evidence that the tenderer, or its subcontractor and the body participating in the attestation of competence, remains unaffected by the grounds for exclusion in the tendering phase; e) the time limit for the receipt of tenders; f) the address to which tenders must be sent; g) an indication whether tenders can be submitted in a language other than Hungarian; h) the place and time of opening the tenders; i) the parties authorized to attend the opening of tenders; j) the duration of the binding period; k) the date of dispatch of the invitation to tender. (2) In restricted procedures the contracting entity shall be bound by the conditions laid down in the invitation to participate and in the tender documents from the time limit for participation, and the tenderer shall be bound by his offer from the time limit for the receipt of tenders. The contracting entity may not specify in the invitation to tender

the period during which the tenderer is bound to keep open his tender in excess of thirty days, or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation. (3) Tenderers shall proceed in accordance with what is contained in the invitation to tender by virtue of Paragraph d) of Subsection (1) as regards exclusions. The statements and certificates already enclosed with the request to participate need not be supplied again, unless the statements and certificates supplied previously are no longer deemed admissible as evidence. Section 88 (1) In the tendering stage of restricted procedures the contracting entity may not set the time limit for the receipt of tenders at less than forty days from the date of dispatch of the invitation to tender. (2) The time limit referred to in Subsection (1) may be replaced by a shorter period, if the contracting entity has dispatched the notice containing the prior summary information drafted in accordance with the prescribed model invitation to participate within a minimum of fifty-two days and a maximum of twelve months before the date on which the invitation to participate was published, provided that the notice contained the information referred to in the model notice as was available at the time of publication of the notice. In this case the time limit for the receipt of tenders shall be not less than twenty-six days from the date on which the invitation to tender was dispatched. (3) The time limit for the receipt of tenders - set at minimum forty days under Subsection (1) and twenty-six days under Subsection (2) - may be reduced by not more than five days, if the contracting entity makes available to tenderers the complete set of tender documents free of charge by electronic means from the date of publication of the notice containing the invitation to participate and if the invitation contains information as to access. (4) When using the accelerated procedure the contracting entity may not set the time limit for the receipt of tenders at less than ten days from the date of publication of the invitation to tender in restricted procedures.

Negotiated Procedures With Prior Publication of a Contract Notice

Section 89 (1) Negotiated procedures with prior publication of a contract notice are two-stage public procurement procedures where the contracting entity evaluates in the first (participation stage) the suitability or unsuitability of candidate tenderers for performance of the contract, and in the second (tendering) stage the contracting entity consults tenderers of its choice invited to submit a tender, and negotiates the terms of the contract with one or more of them. (2) The contracting entity may employ a negotiated procedure with prior publication of a contract notice if: a) an open or restricted procedure or a competitive dialogue has failed pursuant to Paragraph b) or c) of Subsection (1) of Section 76, provided that the original terms of the contract set out in the invitation or tender documents, or in information are not substantially altered in the meantime; b) in exceptional cases for public works and supply or service contracts, when the objective nature of the public works or the objective nature of the goods and/or services or the risks involved do not permit prior overall pricing; c) for public works contracts, when the works involved are carried out purely for the purpose of research, experiment or development, and not to establish commercial viability or to recover research and development costs; d) for service contracts, when the objective nature of the services to be procured, in particular in the case of intellectual services and financial services falling within category 6 of Schedule No. 3, is such that contract specifications cannot be established with sufficient precision to permit the award of the contract by selecting the best offer according to the rules governing open or restricted procedures. Section 90

(1) Negotiated procedures with prior publication of a contract notice shall commence upon publication of an invitation to participate. The invitation to participate shall specify the reason for using the negotiated procedure. (2) In the participation stage any interested economic operator may submit a request to participate, during the participation stage candidate tenderers may not submit a tender. (3) In the invitation to participate the contracting entity may indicate the maximum number of tenderers to be selected during the second stage of the procedure from among the successful candidates requesting to participate, to whom it will send an invitation to submit a tender. The aforementioned limit shall cover at least three tenderers, and shall be sufficient to ensure genuine competition. (4) Where the number of participants is limited the contracting entity shall specify in the invitation to participate the criteria based on which to choose between the successful candidates in the case if in excess of the limit. Selection criteria may be of a technical nature or within the range of professional qualifications required for the fulfillment of the contract. (5) The contracting entity may decide to hold several rounds of negotiations during the tendering stage of the procedure, and to invite for further negotiations after a specific round only those tenderers who made the best offer according to the evaluation criteria. In such cases, the contracting entity shall indicate in the notice published for setting the procedure in motion its intention to reduce the number of tenderers during negotiations. (6) Sections 85 and 86 shall also apply to negotiated procedures with prior publication of a contract notice. Section 91 (1) Invitations to tender shall inter alia contain the following information: a) name, address, telephone and fax number (e-mail) of the contracting entity; b) reference to the invitation to participate and the date of publication; c) the way to obtain tender documents, the deadline by which to obtain them, and the place and financial conditions of purchasing them, if the contracting entity did not provide this information in the invitation to participate and if it did not send the documents with the invitation to tender; d) consistent with the invitation to participate, a description of the certificates and statements and documents to be enclosed with the tender - if necessary - and accepted as sufficient evidence that the tenderer, or its subcontractor and the body participating in the attestation of competence, remains unaffected by the grounds for exclusion in the tendering phase; e) the time limit for the receipt of tenders; f) the address to which tenders must be sent; g) an indication whether tenders can be submitted in a language other than Hungarian; h) the place and time of opening the tenders; i) the parties authorized to attend the opening of tenders; j) the duration of the binding period; k) the date of dispatch of the invitation to tender; l) the scheduled course of negotiations and the basic rules prescribed by the contracting entity; m) the date of the first negotiating session.

(2) In negotiated procedures the contracting entity shall be bound by the conditions laid down in the invitation to participate, the invitation to tender and in the tender documents, and the tenderer shall be bound by his offer from the time of conclusion of negotiations. The contracting entity may not specify in the invitation to tender the period during which the tenderer is bound to keep open his tender in excess of thirty days from the time of commencement thereof (conclusion of negotiations), or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation. (3) Tenderers shall proceed in accordance with what is contained in the invitation to tender by virtue of Paragraph d) of Subsection (1) as regards exclusions. The statements and certificates already enclosed with the request to participate need not be supplied again, unless the statements and certificates supplied previously are no longer deemed admissible as evidence. Section 92 (1) The negotiations between the contracting entity and one or more tenderers in a negotiated procedure shall be aimed to enable the contracting entity to select the tenderer offering the best terms and conditions. (2) The contracting entity shall ensure equal treatment to all tenderers during negotiations, such as in particular any information supplied by the contracting entity shall be made available to all tenderers involved. (3) If negotiating with each tenderer separately, the contracting entity may not reveal to the other tenderers any information communicated by the tenderer during the negotiations, without the agreement of that tenderer. (4) The contracting entity shall record events of each negotiation in minutes and it must be signed before the opening of the next round of negotiations by all tenderers participating in the given negotiations (or within two working days if only one round was held or following the conclusion of the negotiated procedure), and the tenderers shall be given one copy of the minutes or have one sent within two working days. (5) In negotiated procedures the subject matter and the terms and conditions of the procurement may not be amended: a) to involve substantial changes to the conditions set forth in the invitation to participate, invitation to tender and the tender documents, or the introduction of new conditions which are likely to distort competition or have a discriminatory effect, particularly if knowledge of the new conditions would have a significant impact on the ability of interested economic operators to determine whether it is viable for them to enter the public procurement procedure in question, or on account of the changes any tenderer would not be able to submit a tender upon the conclusion of negotiations, b) to entail changes in the evaluation criteria or evaluation method. (6) In the case referred to in Subsection (5) of Section 90, the contracting entity shall indicate in the invitation to tender the timetable of such rounds of negotiations, and the maximum number of tenderers to be selected after the first round or any other predetermined round. During the negotiations held with these selected tenderers the contracting entity shall not alter the original terms and conditions irrespective of whether Subsection (5) apply, whereas the tenderers are required to improve their tenders in these later stages of negotiations. (7) The contracting entity shall specifically inform tenderers in advance of the proposed date for closing out the negotiations, if the invitation to tender contain no apparent information thereof. In conclusion of negotiations, the contracting entity - if deemed necessary due to the magnitude of changes, upon making available a new set of tender documents - may invite tenderers to submit their final tenders in writing. In the case of public works contracts, upon any change in the price offered the related itemized schedule of works and costs must also be enclosed with the final tenders. The contracting entity shall specify the time limit for the submission of final tenders as well. (8) If the contracting entity did not prescribe the submission of final tenders, after the last round of negotiations the contracting entity shall communicate to all tenderers within two working days the quantifiable elements of tenders, which comprise part of the criteria (evaluation factors) based on which to award the contract.

Section 93 (1) In negotiated procedures the contracting entity shall evaluate tenders in two stages. (2) As regards to initial (first) tender submitted inside the time limit specified in the invitation for the receipt of tenders, which entails no binding period, the contracting entity shall verify their compliance with the terms and conditions set out in the invitation to participate, the invitation to tender and the tender documents. Before the commencement of negotiations, any tender that cannot be brought into compliance on any grounds that cannot be corrected during the negotiations or during the process of remedying deficiencies shall be disqualified. The contracting entity may specify - in accordance with Paragraphs a) and b) of Subsection (5) of Section 92 - in the invitation to tender certain elements of the technical terms and conditions, which are not negotiable, or the elements which may be included in the negotiations. Before the commencement of negotiations a tender may be disqualified on the grounds of non-compliance with the technical terms and conditions only if the technical terms and conditions contain an element in derogation from the invitation to tender and the tender documents that will not be included in the negotiations according to the invitation to tender. Any other deficiency of the tender related to statements and documents shall be remedied before the conclusion of negotiations. (3) Following the conclusion of negotiations, the contracting entity shall check the final tenders to verify their compliance with requirements featured in the invitation and the tender documents at the time of conclusion of negotiations, and with the provisions of the relevant legislation, and shall proceed according to Sections 67-70 where deemed necessary. Any deficiency related to statements and documents that should have been remedied in connection with the first offer before the conclusion of negotiations may not be remedied past that time. The contracting entity shall assess valid final tenders based on the criteria specified in the notice published for setting the procedure in motion.

Negotiated Procedures Without Prior Publication of a Contract Notice

Section 94 (1) Negotiated procedures without prior publication of a contract notice are single-stage public procurement procedures, where the contracting entity negotiates the terms and conditions of the contract with tenderers invited and found suitable. (2) The contracting entity may use the negotiated procedure without prior publication of a contract notice in the following cases: a) an open or restricted procedure or a competitive dialogue has failed pursuant to Paragraph b) or c) of Subsection (1) of Section 76, provided that the original terms of the contract set out in the invitation or the tender documents, or in the information are not substantially altered in the meantime, and the contracting entity has invited all tenderers to whom Paragraphs a)-d) of Subsection (1) and Paragraph c) of Subsection (2) of Section 74 does not apply and who, during the prior open or restricted procedure or competitive dialogue, have submitted tenders; b) following an open or restricted procedure or a negotiated procedure with prior publication of a contract notice that has been declared unsuccessful because no tenders or no requests to participate have been submitted, insofar as the original terms of the contract and the tender documents are not substantially altered; the contracting entity is required to inform the European Commission through the Kzbeszerzsi Hatsg ( Procurement Authority) thereof; c) when, for technical or artistic reasons, or for reasons connected with the protection of exclusive rights, the contract may be performed only by a particular organization or person; d) insofar as is strictly necessary when, for reasons of extreme urgency brought about by events unforeseeable by the contracting entity in question, the time limit laid down for the open, restricted or negotiated procedures with prior publication of a contract notice cannot be kept. The circumstances invoked to justify extreme urgency must not in any event be attributable to the contracting entity. (3) In addition to the above, the contracting entity may use the negotiated procedure without prior publication of a contract notice for public works and public service contracts in the following cases:

a) for additional works and services not included in the contract first concluded but which have, through unforeseen circumstances, become necessary for the carrying out of the works and services described therein, on condition that the award is made to the contractor carrying out such work when such works and services cannot be technically or economically separated from the main contract without considerable inconvenience to the contracting entity, or when such works and services, although separable from the execution of the original contract, are strictly necessary to its later stages, nevertheless, the estimated aggregate amount of contracts awarded to the previous successful tenderer for additional works and services may not exceed half of the amount of the main contract; b) for new works or services consisting of the repetition of similar works entrusted to the company to which the same contracting entity awarded an earlier contract for the same or similar works or services, provided that such works or services conform to a basic project for which a first contract was awarded by the open procedure or by the restricted procedure, and in the contract notice published for the previous procedure the contracting entity has indicated that this procedure might be adopted and the total estimated cost of subsequent works or services shall be taken into consideration by the contracting entity (for determining whether the Community limit is reached or not). This negotiated procedure may only be used during the three years following the conclusion of the original contract. (4) Moreover, the contracting entity may use the negotiated procedure without prior publication of a contract notice for public supply contracts in the following cases: a) when the products involved are manufactured purely for the purpose of research, experiment, study or development; this provision shall not apply to quantity production to establish commercial viability or to recover research and development costs; b) for additional deliveries by the original supplier which are intended either as a partial replacement of normal supplies or installations or as the extension of existing supplies or installations where a change of supplier would compel the contracting entity to acquire material having different technical characteristics which would result in incompatibility or disproportionate technical difficulties in operation and maintenance; however, the length of such contracts awarded to the previous successful tenderer as well as that of recurrent contracts may not exceed three years; c) for supplies quoted and purchased on a commodity market; d) for purchases of goods under particularly advantageous conditions from either a supplier definitively winding up his business activities or the receivers or liquidators of a bankruptcy, under judicial enforcement or a similar procedure under national laws or regulations. (5) Contracting entities may award public service contracts by negotiated procedure without prior publication of a contract notice where the contract concerned follows a design contest and must be awarded to the successful candidate or to one of the successful candidates recommended by the evaluation committee. In the latter case, all candidates (tenderers) recommended by the evaluation committee shall be invited to participate in the negotiations. Section 95 (1) Negotiated procedures without prior publication of a contract notice shall commence - except for the procedures specified in Paragraphs c)-d) of Subsection (4) of Section 94 - upon the conveyance of the invitation to tender, or an invitation to negotiations in the case under Subsection (2) of Section 99. (2) In negotiated procedures without prior publication of a contract notice tenders shall be accepted only from the economic operator(s) invited to submit a tender. The economic operators invited to submit a tender may not submit a tender jointly, however, an economic operator invited to submit a tender shall be able to submit a tender jointly with an economic operator to whom the contracting entity did not send an invitation to tender. (3) Where tenders will be accepted from several tenderers, the invitation to tender shall be sent to all tenderers simultaneously. (4) In connection with negotiated procedures defined in Paragraph b) of Subsection (2) and in Paragraph a) of Subsection (4) of Section 94, and where this is possible within reasonable limits in cases of extreme urgency, the

contracting entity shall invite at least three candidates, if possible, to submit a tender in the case defined in Paragraph d) of Subsection (2) of Section 94. Section 96 (1) In addition to what is contained in Section 38, invitations to tender shall inter alia contain the following information: a) reference to the grounds for the negotiated procedure in accordance with Section 94; b) the scheduled course of negotiations and the basic rules prescribed by the contracting entity; c) the date of the first negotiating session. (2) In negotiated procedures without prior publication of a contract notice tender documents are not mandatory. Where there are no tender documents the contracting entity shall specify in the invitation to tender the contract terms and conditions, the technical specifications, the itemized schedule of works for public works contracts, and the requirements relating to the business association to be established in certain cases by the successful tenderers. (3) When the award is made in a negotiated procedure referred to in Subsection (5) of Section 94 without prior publication of a contract notice, it may only be made to the most economically advantageous tender. (4) The contracting entity shall be bound by the conditions laid down in the invitation to tender and in the tender documents, and the tenderer shall be bound by his offer from the time of conclusion of negotiations. In the invitation to tender the contracting entity may not specify the period during which the tenderer is bound to keep open his tender in excess of thirty days from the time of commencement thereof (conclusion of negotiations), or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation. Section 97 (1) The provisions contained in Subsections (1)-(4) and (7)-(8) of Section 92 shall also apply to negotiations. (2) In negotiated procedures the subject-matter and the terms and conditions of the procurement may not be amended where this may result: a) in changes in the subject-matter or in the terms and conditions of the contract awarded compared to the item intended to be purchased at the time of having the negotiated procedure dispatched in terms of features or conditions, that would not have facilitated a negotiated procedure, b) in changes to the conditions set forth in the invitation to tender and the tender documents, or the introduction of new conditions, on account which any tenderer would not be able to submit a final tender upon the conclusion of negotiations, or c) to entail changes in the evaluation criteria or evaluation method. Section 98 (1) In negotiated procedures without prior publication of a contract notice the contracting entity shall evaluate tenders in two stages. (2) As regards to initial (first) tenders submitted inside the time limit specified in the invitation for the receipt of tenders, which entails no binding period, the contracting entity shall verify their compliance with the terms and conditions set out in the invitation to tender and the tender documents. Before the commencement of negotiations the contracting entity shall determine the tenderers ability or inability for performing the contract, and also if the tender should be disqualified for the existence of any grounds for exclusion.

The contracting entity may specify - in accordance with Paragraphs a) and b) of Subsection (2) of Section 97 - in the invitation to tender certain elements of the technical terms and conditions, which are not negotiable, or the elements which may be included in the negotiations. Before the commencement of negotiations a tender may be disqualified on the grounds of non-compliance with the technical terms and conditions only if the tender contain an element in derogation from the invitation to tender and the tender documents that will not be included in the negotiations according to the invitation to tender. A tender shall be disqualified before the commencement of negotiations if the tenderer is unable to comply with the selection criteria for the performance of the contract - or if his suitability cannot be determined -, or if the tender should be disqualified for the existence of any grounds for exclusion, or if the tender cannot be brought into compliance on any grounds that cannot be corrected during the negotiations or during the process of remedying deficiencies. Any other deficiency of the tender related to statements and documents shall be remedied before the conclusion of negotiations. (3) Following the conclusion of negotiations, the contracting entity shall check the final tenders to verify their compliance with requirements featured in the invitation and the tender documents at the time of conclusion of negotiations, and with the provisions of the relevant legislation. Any deficiency related to statements and documents that should have been remedied in connection with the first offer before the conclusion of negotiations may not be remedied past that time. The contracting entity shall assess valid final tenders based on the criteria specified in the notice published for setting the procedure in motion. Section 99 (1) In a negotiated procedure without prior publication of a contract notice described in Paragraph d) of Subsection (2) of Section 94, negotiations shall be held with the tenderer or tenderers and a contract shall be concluded thereupon who is capable of fulfilling the contract within the timeframe dictated by extraordinary circumstances and, if a notice (invitation) was sent to more than one economic operators, with the one that made the best offer. (2) In that case, the contracting entity shall send invitation to tender, or if this is not possible due to the extreme urgency brought about by the relevant circumstances, invitations to negotiations to the economic operators found suitable. The invitation to negotiations shall contain the name and address of the contracting entity, the place and time of negotiations, and at least the subject-matter and quantity of the procurement. (3) In procedures conducted under extreme urgency: a) by way of derogation from the general provisions, no selection criteria shall be prescribed, consequently, there is no need to verify the suitability of tenderers; b) tenderers are required to declare only that they are being unaffected by the grounds for exclusion under Section 56, and by any other exclusion criteria prescribed by the contracting entity; and c) the successful tenderer shall supply proof of being unaffected by the grounds for exclusion within not more than fifteen days following the date of conclusion of the contract. Section 100 (1) On the day of commencement of a negotiated procedure without prior publication of a contract notice the contracting entity shall dispatch the invitation to tender to the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board), along with the names and addressees (registered office or home address) of the economic operators intended to be invited, the estimated value of the contract and the circumstances serving as grounds for using the negotiated procedure. (2) In the case under Paragraph d) of Subsection (2) of Section 94, the contracting entity shall forthwith notify the Kzbeszerzsi Dntbizottsg as per Subsection (1) at the time when sending out the invitation to tender or, where appropriate, the invitation to negotiations. In certain cases, an invitation to negotiations shall be sent instead of an invitation to tender. (3) On the day of commencement of a negotiated procedure referred to in Paragraphs c) and d) of Subsection (4) of Section 94 the contracting entity shall dispatch to the Kzbeszerzsi Dntbizottsg, by fax or electronic means,

the circumstances serving as grounds for using the negotiated procedure, along with the name and address of the entity concerned in the case under Paragraph d).

Competitive Dialogue
Section 101 (1) Competitive dialogue means a public procurement procedure where the contracting entity conducts a dialogue with the candidates admitted to that procedure in accordance with the provisions of this Act, with the aim of laying down the specifics concerning the subject-matter of the procedure or the type and conditions of the contract, and on the basis of which the candidates chosen are invited to tender. (2) Competitive dialogue procedures are held in three stages as follows: a) participation stage, b) dialogue, c) tendering stage. Section 102 (1) Contracting entities may use the competitive dialogue procedure if: a) not objectively able to establish the public procurement technical specifications for the object of the public procurement, or not with sufficient precision as is required for open and restricted procedures; or b) not objectively able to specify the type of contract or the legal and/or financial make-up of the contract, or not with sufficient precision as is required for open and restricted procedures. (2) The conditions referred to in Paragraph a) or b) of Subsection (1) may not originate from the contracting entitys negligence. Section 103 (1) Competitive dialogue procedures shall commence upon publication of an invitation to participate. Subsections (1)-(5) of Section 90 shall apply to competitive dialogue procedures as well, with the exception that negotiations shall be understood as dialogues conducted during the consultation stage. (2) In competitive dialogue procedures the contracting entity may not set the time limit for participation at less than thirty days from the date of dispatch of the notice containing the invitation to participate. (3) A public contract shall be awarded in the competitive dialogue procedure on the sole basis of the award criterion for the most economically advantageous tender. (4) The contracting entity may not set the date of dispatch of the invitation to tender in excess of thirty days, or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation, following the opening of the requests to participate. (5) The contracting entity, if descriptive documents are not made available during the participation stage, shall define its needs and requirements relating to the subject-matter of the procurement in the invitation to participate. Section 104 (1) If the participation stage is successful, the contracting entity shall dispatch the invitation to tender in writing to all candidate tenderers selected within five working days after the results are communicated to the tenderers, or on

the basis of technical or professional capacities if the contracting entity has defined the maximum number of participants in the dialogue to be selected from among the successful candidates. (2) If the number of suitable candidates remains below the minimum to be admitted, the contracting entity shall invite the candidates selected to participate in the dialogue. The tenderers invited independently to participate in the dialogue may not propose a solution or submit a tender collectively. (3) During the consultation stage of the procedure tenderers may propose solutions, on the basis of which the contracting entity conducts a dialogue with them. Section 105 (1) Invitations to tender shall inter alia contain the following information: a) name, address, telephone and fax number (e-mail) of the contracting entity; b) reference to the invitation to participate and the date of publication; c) the way to obtain descriptive documents, the deadline by which to obtain them, and the place and financial conditions of purchasing them, if the contracting entity did not provide this information in the invitation to participate and if it did not send the documents with the invitation to tender; d) the time limit for the submission of proposals for solutions (time limit for the receipt of tenders); e) the address where proposals for solutions are to be submitted; f) an indication whether proposals for solutions can be submitted and dialogue can be conducted in a language other than Hungarian; g) the place and time of opening the proposals for solutions; h) the parties authorized to attend the opening of proposals for solutions; i) the date of dispatch of the invitation to dialogue; j) the scheduled course of conducting the dialogue and the basic rules prescribed by the contracting entity; k) if the contracting entity wishes to exercise the option to reduce the number of tenderers during the dialogue, the timetable of the rounds of consultation, and the maximum number of candidates to be selected for the dialogue after the round specified; l) if the contracting entity wishes to make payments to any one or more tenderer, the related provisions that it has specified; m) consistent with the invitation to participate, a description of the certificates and statements and documents to be enclosed with the proposal for solutions - if necessary - and accepted as sufficient evidence that the tenderer and its subcontractor, and the body participating in the attestation of competence, remains unaffected by the grounds for exclusion in the dialogue stage. (2) The descriptive document shall contain a description of the subject-matter of the procurement and the public procurement technical specifications, as well as the contract terms and conditions to the extent that the contracting entity is able to supply it, and instructions as to the circumstances for which the contracting entity is requesting solutions from the tenderers, as well as the limits set by, or expectations of the contracting entity with respect to these circumstances. (3) The proposal presented shall contain:

a) the tenderers proposal, presented in one or several alternatives, concerning the circumstances specified in Subsection (2); and b) the tenderers proposal concerning the performance of the contract if it was to be discharged based upon the technical solutions and/or financial/legal solutions he has presented; and c) an indication as to which section or sections of the proposed solution should be handled confidentially; and d) a statement as to whether the candidate consents to use any part of his proposed solution to define the requirements concerning the subject-matter of the procurement. (4) The contracting entity may prescribe in the invitation to tender that submission of a proposed solution also constitutes the tenderers consent allowing the contracting entity to use his proposal and ideas, which are not protected under intellectual property rights in drawing up the requirements relating to the subject-matter of the procurement. (5) The provisions on the opening of tenders shall also apply to the submission and opening proposals for solutions, and the provisions of Paragraph a) of Subsection (1) of Section 74 and Paragraph a) of Subsection (1) of Section 76 shall apply mutatis mutandis to proposals submitted by tenderers. Section 106 (1) In a competitive dialogue procedure the contracting entity shall open a dialogue with one or more tenderers aiming to identify the means best suited to enable the contracting entity to establish the public procurement technical specifications for the object of the public procurement with sufficient precision, and the type or the legal and financial conditions of the contract. (2) During the dialogue, the contracting entity shall ensure equality of treatment among all tenderers, in particular, any information the contracting entity has provided shall be made available to all tenderers. (3) During the dialogue tenderers shall not be bound by the solutions they proposed, and the contracting entity shall not be bound by the conditions it has specified, however, during the procedure the object of the procurement and the conditions set out in the invitation to participate, the invitation to tender and in the descriptive documents may not be amended to an extent where this is likely to distort competition or have a discriminatory effect in respect of economic operators. The evaluation criteria or evaluation method may not be altered during the procedure. (4) In the case under Paragraph k) of Subsection (1) of Section 105, during the negotiations held with the tenderers selected the contracting entity shall not alter the original terms and conditions irrespective of whether Subsections (3) apply, whereas the tenderers are required to improve their solutions in these later stages of consultations. Where a candidate has submitted several alternative solutions, the individual alternatives shall be handled as independent proposals and the contracting entity shall be entitled not to invite certain specific alternatives the candidate has presented from the next round or rounds of consultations. (5) If consulting with each tenderer separately, the contracting entity may not reveal to the other tenderers any information communicated by the tenderer during the consultation, without the agreement of that tenderer. (6) The contracting entity shall record events of each negotiation - where verbal consultation is (also) conducted in minutes and it must be signed before the opening of the next round of consultation by all tenderers participating in the given consultation (or within two working days if only one round was held or following the conclusion of the dialogue procedure), and the tenderers shall be given one copy of the minutes or have one sent within two working days. Section 107 (1) Following conclusion of the dialogue the contracting entity shall request the candidates who participated - in the last round where appropriate - in writing and at the same time, to submit their tenders.

(2) If all participants have consented in their solution proposals for the use of their proposed solution in whole or in part to define the requirements concerning the subject-matter of the contract, the contracting entity shall be entitled, if deemed necessary, to use any part or parts of any solution proposal submitted for establishing the public procurement technical specifications for the final tender, as well as the contract terms and conditions. In this case the contracting entity shall be required to draw up new tender documents for the tender. (3) Where the conditions set out in Subsection (2) do not apply, candidates shall fine-tune their previous proposals and submit them as the final tender. (4) The invitation to tender shall specify: a) the deadline and the place for submission of the tenders; b) the date and time of opening the tenders; c) in the case under Subsection (2), information concerning the availability of tender documents, if the contracting entity did not send the tender documents together with the invitation; d) the duration of the binding period; e) consistent with the invitation to participate, a description of the certificates and statements and documents to be enclosed with the tender - if necessary - and accepted as sufficient evidence that the tenderer and its subcontractor, and the body participating in the attestation of competence, remains unaffected by the grounds for exclusion in the tendering stage. (5) The binding period on the tenderers part shall commence upon the expiry of the time limit for the receipt of tenders. The contracting entity may not specify in the invitation to tender the period during which the tenderer is bound to keep open his tender in excess of thirty days, or sixty days in the case of public works contracts or if the public procurement procedure is conducted under an integrated monitoring system prescribed by the relevant legislation. (6) The contracting entity shall check the tenders submitted for compliance with the provisions of this Act, which shall be conducted according to Subsection (1) of Section 63 for compliance with the requirements set out in the descriptive documents if tender documents had not been prepared, and shall evaluate the valid tenders according to the evaluation criteria set out in the notice published for setting the procedure in motion.

Award of Framework Agreement

Section 108 (1) Contracting entities shall be able to conclude framework agreement for their procurements. (2) To this end: a) they shall enter into a framework agreement for the award of contracts in accordance with Section 109 in open, restricted, or - where appropriate - negotiated procedures; b) they shall conclude a framework agreement under Section 110 for the implementation of their procurement. Section 109 (1) There are four types of framework agreements: a) a framework agreement concluded with a single tenderer, containing - with binding force - all terms and conditions of the contract(s) to be concluded for the implementation of the specific procurement to which it pertains;

b) a framework agreement concluded with a single tenderer, that does not contain all terms and conditions of the contract(s) to be concluded for the implementation of the specific procurement to which it pertains, or contains them with no binding force; c) a framework agreement concluded with more than one tenderers, containing - with binding force - all terms and conditions of the contract(s) to be concluded for the implementation of the specific procurement to which it pertains; d) a framework agreement concluded with more than one tenderers, that does not contain all terms and conditions of the contract(s) to be concluded for the implementation of the specific procurement to which it pertains, or contains them with no binding force. (2) The contracting entity shall specify in the notice published for setting the procedure in motion the type of framework agreement under Subsection (1) to which the procedure pertains. (3) Where the framework agreement is set to be concluded with more than one tenderers, the contracting entity shall indicate in the notice published for setting the procedure in motion the admissible number of tenderers to be selected based on the criteria referred to in Subsection (2) of Section 71 from among the candidates presenting the best offer, with whom it will enter into a framework agreement. The admissible number of tenderers shall correspond with the subject-matter of the contract and unique characteristics of the procedure, and shall ensure fair competition under all circumstances. The aforementioned limit shall be for at least three tenderers. The provisions of Subsections (2)-(4) of Section 72 may not be applied for equivalent tenders. If several tenders contain the same or similar terms among the best offers, a framework agreement shall be concluded with all such tenderers. (4) The framework agreement referred to in Subsection (3) shall be concluded with at least three tenderers only if at least three tenderers had been found suitable and selected, and the tenders they have submitted are considered admissible. If the contracting entity has indicated in the notice published for setting the procedure in motion that the procedure involves the establishment of a framework agreement under Paragraph d) of Subsection (1), the procedure - apart from the reason specified in Subsection (1) of Section 76 - may be unsuccessful if only one admissible tender had been submitted. (5) Framework agreements are concluded for a maximum term of four years. The contracting entity may install a clause in the framework agreement for undertaking commitment for a specific part of the quantity envisaged for the contracts to be awarded based on the framework agreement. The contracting entity shall not be compelled to award a contract or contracts on the basis of a framework agreement if unable to conclude or fulfill the contract or contracts due to any unforeseen and unavoidable circumstance beyond its control that has occurred following the conclusion of the framework agreement. In this case the contracting entity shall forthwith notify, in writing, the tenderers being a party to the framework agreement and the Kzbeszerzsi Hatsg ( Procurement Authority). (6) The contracting entity may use a different procedure governed under this Chapter subject to prior publication of a notice for the implementation of the procurement on the basis of a framework agreement, especially if the framework agreement is concluded for a term of several years, or if the number of tenderers participating in the framework agreement is insufficient to ensure genuine competition. In this case the contracting entity shall publish a new notice making reference to the above, and shall inform all qualified candidates concerning the publication of a new notice immediately following publication. (7) A framework agreement may pertain to several different objects of procurement. In procedures for the conclusion of framework agreements special attention shall be given to the possibility of tendering for one, for several and/or for all the lots so as to facilitate the participation of micro, small and medium-sized enterprises. (8) The framework agreements concluded under Paragraph c) of Subsection (1) shall specify the objective criteria (for example, the ranking established based on the evaluation criteria referred to in the first part or any other objective criteria related to the object of the procurement to which the framework agreement pertains), on the basis of which contracts will be awarded for the implementation of the procurement in question with either one of the tenderers being a party to the framework agreement. Section 110

(1) The length of the contract(s) to be concluded under a framework agreement and the quantity purchased may not exceed, respectively, the term of the framework agreement and the quantity envisaged in the framework agreement. (2) Where consultation is held or competition has been reopened under a framework agreement, the terms and conditions fixed in the framework agreement may not be substantially altered in the process of consultations or upon the reopening of competition. (3) Where a framework agreement is concluded with a single tenderer - including if the procedure involved the establishment of a framework agreement under Paragraph c) or d) of Subsection (1) of Section 109, however, the framework agreement was concluded with the tenderer having submitted the only admissible tender [according to Paragraph a) of Subsection (1) of Section 109 instead of Paragraph c), and Paragraph b) of Subsection (1) of Section 109 instead of Paragraph d)] - the contract may be awarded: a) under the conditions set out in the framework agreement under Paragraph a) of Subsection (1) of Section 109, by way of direct order by the contracting entity of the framework agreement; b) under the framework agreement specified in Paragraph b) of Subsection (1) of Section 109, by conclusion of the contract following consultation. In the invitation to consultation the contracting entity shall invite the tenderer to supplement his tender submitted in the public procurement procedures conducted for the conclusion of the framework agreement, specifying the additional documents and/or information the tenderer is requested to supply. The invitation to consultation shall contain information concerning the subject-matter of the procurement and the terms and conditions of the contract. In the consultation the offer made by the tenderer must be the same as the one contained in the framework agreement, or it shall feature better conditions for the contracting entity. The tenderer shall be bound to maintain his tender made during consultation up to the time limit specified in the invitation to consultation. The contracting entity shall notify the tenderer of its decision concerning the approval or refusal of the offer made during consultation in accordance with Subsection (2) of Section 77. (4) On the basis of a framework agreement awarded to several tenderers for the implementation of specific procurement(s) the contract may be awarded: a) to the tenderer selected according to Subsection (8) of Section 109 under the conditions set out in the framework agreement under Paragraph c) of Subsection (1) of Section 109, by way of direct order by the contracting entity of the framework agreement; b) under the framework agreement specified in Paragraph d) of Subsection (1) of Section 109, by way of electronic auction or by means of the procedure described in Subsections (5-(7) upon re-opening competition. (5) In the application of Paragraph b) of Subsection (4), the contracting entity shall send an invitation to tender simultaneously to all tenderers whom are parties to the framework agreement. No other tenderers may be included in the procedure. The invitation to tender shall contain: a) name, address, telephone and fax number (e-mail) of the contracting entity; b) reference to the notice published for the procedure for the award of the framework agreement and the date of publication; c) reference to the framework agreement concluded; d) the subject-matter and volume of the specific procurement; e) description of the contract; f) term of the contract or the time limit for delivery; g) place of performance; h) payment terms and conditions, or reference to the relevant regulations;

i) the time limit for the receipt of tenders and the address to which tenders must be sent, and an indication whether tenders may be submitted in a language other than Hungarian; j) the place and time of opening the tenders and the parties authorized to attend the opening procedure; k) any other information deemed necessary for responsive tendering, relating to the supply of additional documents, where appropriate; l) the duration of the binding period; m) criteria to be applied in the evaluation of tenders, and the requirements set out in Subsections (3)-(4) of Section 71 where the award is made to the most economically advantageous tender. (6) The contracting entity may depart from the evaluation criteria used in public procurement procedures for the award of a framework agreement if it was so prescribed in the public procurement procedure conducted for the award of a framework agreement - in the notice published for setting the procedure in motion or in the tender documents -, and if it is contained in the framework agreement. Where the contract is awarded to the most economically advantageous tender, the provisions contained in Subsections (3)-(4) of Section 71 shall be fixed in the tender notice or in the tender documents, and also in the framework agreement. The offer made by the tenderer must be the same as the one contained in the framework agreement, or it shall feature better conditions for the contracting entity. (7) The opening and evaluation of tenders, communication of the contracting entitys decisions and the award of contracts shall be governed by the provisions of Chapters X-XI.

Chapter XIII Special Provisions Relating to Public Works Concession Contracts

Section 111 (1) Public works concessions are governed by Chapters VI-XII subject to the special provisions contained in this Chapter. (2) Contracting entities shall specify in the contract notice the type of procurement procedure they intend to use. The regulations governing contract notices or invitations to participate shall be applied accordingly in connection with drawing up the notice. Contracting entities may not use the accelerated procedure. (3) Contracting entities may use the negotiated procedure with prior publication of a contract under any circumstance. Negotiated procedures without prior publication of a contract notice may be used only in the cases referred to in Paragraphs a), b), c) of Subsection (2) and Paragraph a) of Subsection (3) of Section 94. (4) The contracting entity may enter into a contract with the concessionaire without having to conduct another public procurement procedure for additional works not included in the contract first awarded but which have, through unforeseen circumstances, become necessary for the carrying out of the works described therein, on condition that: a) the award is made to the contractor carrying out such work when such works cannot be technically or economically separated from the main contract without great inconvenience to the contracting entity, or b) when the additional works, although separable, are essential for the completion of the works. (5) The estimated aggregate value of the contract or contracts awarded to the former concessionaire for additional works under Subsection (4) may not exceed half of the value of the original public works concession. (6) The contracting entity may specify in the contract notice to:

a) require the tenderer to whom the public works concession contract is awarded (hereinafter referred to as concessionaire) to award contracts representing a minimum of thirty per cent of the total value of the work for which the concession contract is to be awarded, to third parties; or b) request the candidates for concession contracts to specify in their tenders the percentage, if any, of the total value of the work for which the concession contract is to be awarded which they intend to assign to third parties. (7) Tenderers shall be provided the option to increase in their tenders the percentage referred to in Paragraph a) of Subsection (6). The minimum percentage indicated by the concessionaire shall be fixed in the concession contract. (8) Within the meaning of Subsection (6) above, and Section 113 the following shall not be regarded as third parties: a) either member of a group formed in order to obtain the concession contract; b) any company over which the tenderer is able to effectively exercise, directly or indirectly, a dominant influence or which is able to exercise a dominant influence over the tenderer or which, in league with the tenderer, is subject to the dominant influence of another company. (9) The tenderer shall enclose a comprehensive list of the companies referred to in Paragraph b) of Subsection (6) in the tender for the concession and it shall be brought up to date following any subsequent changes. (10) The contracting entity may not include a clause in the tender notice requiring tenderers to indicate their subcontractors planned to be involved in the performance of the contract covering ten per cent or more of the value of the contract. Section 112 (1) In connection with public works concessions: a) the award may only be made to the most economically advantageous tender [Paragraph b) of Subsection (2) of Section 71]; b) in open procedures, and in restricted procedures and in negotiated procedures with prior publication of a contract notice the contracting entity may not set, respectively, the time limit for the receipt of tenders and the time limit for participation at less than forty-five days from the date of dispatch of the tender notice, furthermore, Subsection (5) of Section 83 and Subsection (2) of Section 88 may not be applied. (2) Where a particular public works concession also falls within the scope of Act XVI of 1991 on Concessions (hereinafter referred to as Concessions Act), the contracting entity shall - rather than launching a concession tender - proceed according to this Act, and shall duly observe the provisions of the Concessions Act with the exception of Paragraph a) of Subsection (1) of Section 2, Section 4, Subsection (1) of Section 8 and Section 9. With respect to the written report referred to in Subsection (2) of Section 77 of this Act, the provisions contained in Section 9/A of the Concession Act shall also apply.

Provisions on the Contractual Relations of Concessionaires Other than Contracting Entities with Third Parties
Section 113 (1) When the concessionaire is not considered according to Paragraphs a)-d) of Subsection (1) of Section 6 one of the authorities awarding contracts - and the concession was awarded without a public procurement procedure, rather than by the procedure under Paragraph h) of Subsection (1) of Section 9 - he must proceed according to Chapters IXII of this Act - subject to the exceptions set out in Subsections (2)-(5) - for the award of public works contracts to third parties if their value reaches or exceeds the EU threshold.

(2) The concessionaire shall indicate in the tender notice the type of procurement procedure intended to use. The regulations governing contract notices or invitations to participate shall be applied accordingly in connection with drawing up the notice. (3) Contracting entities may use the negotiated procedure with prior publication of a contract under any circumstance. (4) With the exception of negotiated procedures, the time limit for the receipt of tenders may not be set at less than thirty-three days from the date of publication of the contract notice or the date of dispatch of the invitation to tender, and the time limit for participation may not be set at less than thirty days. Subsection (5) of Section 83 and Subsection (2) of Section 88 shall not apply. (5) Contracting entities may not use the accelerated procedure.

Chapter XIV Special Provisions Relating Public Service Activities Public Service Contracts
Section 114 (1) Public service contracts shall be governed by the provisions of Chapters VI-XII, subject to the exceptions set out in this Chapter and in specific other legislation. (2) Public service contract means the contracts of contracting entities referred to in Paragraphs a)-f) of Subsection (1) of Section 6 engaged in the pursuit of either of the activities specified in this Subsection (hereinafter referred to as public service activities), which contacts are concluded for carrying out any one or more of the following public service activities: a) the provision or operation of fixed networks intended to provide a service to the public in connection with the production, transport or distribution of drinking water, electricity, gas or heat, or the supply of drinking water, electricity, gas or heat to such networks; b) the exploitation of a geographical area for the purpose of: ba) exploring for or extracting (mining) oil, gas, coal or other solid fuels, or bb) the provision of airport, maritime or inland port or other terminal facilities to carriers by air, sea or inland waterway and to carriers of passengers; c) the provision, management and operation of networks providing a service to the public in the field of transport by railway, automated systems, tramway, trolleybus, bus, or cable; d) the provision of postal services and the provision of services other than postal services, if the latter is provided by a body that also provides postal services. (3) In the application of Paragraph c) of Subsection (2), a network shall be considered to exist where the service is provided under (operating) conditions laid down by a competent authority, such as conditions on the routes to be served, the capacity to be made available or the frequency of the service. (4) This Chapter shall also apply (recognized as public service activities), to contracts awarded by the contracting entities which exercise an activity referred to in Paragraph a) of Subsection (2) relating to drinking water, and which:

a) are connected with hydraulic engineering projects, irrigation or water management (land drainage), provided that the volume of water intended for the supply of drinking water represents more than twenty per cent of the total volume of water made available by these projects or irrigation or drainage installations; or b) are connected with the disposal or treatment of sewage. (5) Contracts concluded by the contracting entities referred to in Paragraphs a)-e) of Subsection (1) of Section 6 shall be recognized as a public service contract even if the contracting entity is yet to commence the public service activities under Subsection (2), however, it is necessary for the preparation, commencement or pursuit of the public service activities. Section 115 (1) The supply of drinking water, electricity, gas or heat to networks which provide a service to the public by a contracting entity referred to in Paragraphs e)-f) of Subsection (1) of Section 6 shall not be considered as a relevant activity within the meaning of public service activities relating to supply of drinking water, electricity, gas or heat where: a) in the case of drinking water or electricity, the production of drinking water or electricity by the entity concerned takes place because its consumption is necessary for carrying out an activity other than public service activities, and supply to the public network depends only on the entitys own consumption and has not exceeded thirty per cent of the entitys total production of dri nking water or energy, having regard to the average for the preceding three years, including the current year; b) in the case of gas or heat, the production of gas or heat by the entity concerned is the unavoidable consequence of carrying on an activity other than public service activities, and supply to the public network is aimed only at the economic exploitation of such production and amounts to not more than twenty per cent of the entitys turnover having regard to the average for the preceding three years, including the current year. (2) The provision of bus transport services to the public shall not be considered to be a relevant activity relating to the provision or operation of networks providing a service to the public in the field of transport, where other entities are free to provide those services, either in general or in a particular geographical area, under the same conditions as the contracting entities. (3) The detailed provisions on the public procurement procedures under this Chapter - reflecting the necessary derogations from this Act due to the unique nature of these procedures - are laid down in specific other legislation.

Exemptions
Section 116 (1) This Act shall not apply to contracts: a) awarded for purposes other than the pursuit of public service activities by the contracting entities referred to in Paragraphs e)-f) of Subsection (1) of Section 6, or b) which the contracting entities award for the pursuit of their public service activities in a third country, in conditions not involving the physical use of a network or geographical area within the territory of the European Union. (2) The contracting entities - through the Kzbeszerzsi Hatsg (Procurement Authority) - shall notify the European Commission at its request of any activities which they regard as excluded under Subsection (1). Section 117 (1) This Act shall not apply to:

a) contracts which the contracting entities involved in public service activities relating to drinking water award for the purchase of water; b) contracts which the contracting entities involved in public service activities relating to electricity, gas or heat, and in the exploration for and the extraction of oil, gas, coal or other solid fuels, award for the supply of energy or of fuels for the production of energy. (2) This Act shall not apply to public service contracts awarded for purposes of resale or hire to third parties, provided that the contracting entity has not been granted special or exclusive rights to sell or hire the subject-matter of such contracts and other entities are free to sell or hire it under the same conditions as the contracting entity in question. (3) The contracting entities - through the Kzbeszerzsi Hatsg (Procurement Authority) - shall notify the European Commission at its request of all the categories of products or activities which they regard as excluded under Subsection (2). Section 118 (1) This Act shall not apply to: a) public service contracts awarded to a body in connection with which the contracting entity is required under the Accounting Act to file a consolidated annual account, or over which the contracting entity effectively exercises, directly or indirectly, dominant influence, or which may exercise, directly or indirectly, dominant influence over the contracting entity, or to another body which, in league with the contracting entity, is subject to the dominant influence of another company; or b) public service contracts awarded by a joint venture formed by a number of contracting entities for the purpose of carrying out public service activities to an entity which is affiliated with one of these contracting entities in accordance with Paragraph a), provided that at least eighty per cent of the average turnover of the entity referred to in Paragraph a) or b) with respect to supplies and services, or public works contracts arising within the European Union for the preceding three years derives from business operations with the entities with which it is affiliated in accordance with Paragraph a). (2) When, because of the date on which a body under contractual relationship with the contracting entity was created or commenced activities, the turnover is not available for the preceding three years, it will be sufficient for that undertaking to show that the turnover referred to in Subsection (1) is credible, particularly by means of business projections. (3) Where more than one body that is under a contractual relationship with the contracting entity as referred to in Paragraph a) of Subsection (1) provides the same or similar services, supplies or works, the total turnover deriving respectively from the provision of services, supplies or works by those affiliated companies shall be taken into account. (4) If a body that is affiliated with the contracting entity by way of a relationship under Subsection (1) is not recognized as a contracting entity, and this body enters into a contract - with a view to satisfying the procurement needs of the contracting entity - with a third party covering more than twenty-five per cent of the contract concluded with the contracting entity, and such third party falls outside the scope of this Section, the exemption under Subsection (1) shall apply only if the body affiliated with the contracting entity by way of a relationship under Subsection (1) carries out an award procedure according to Paragraph h) of Subsection (1) of Section 6 for selecting the third party in question. The exemption under Subsection (1) shall be bound to the aforementioned condition only if the contracting entity would be required to conduct a public procurement procedure without the exemption. (5) Furthermore, this Act shall not apply to contracts awarded: a) by a joint venture, formed exclusively by a number of contracting entities for the purpose of carrying out public service activities, to one of these contracting entities; or

b) by a contracting entity to such a joint venture of which it forms part, provided that the joint venture has been set up in order to carry out the public service activity concerned over a period of at least three years and that the instrument setting up the joint venture stipulates that the contracting entities, which form it, will be part thereof for at least the same period. (6) Regarding the application of the provisions of Subsections (1)-(5), the contracting entities - through the Kzbeszerzsi Hatsg (Procurement Authority) - shall notify the European Commission, at its request, concerning the names of the suppliers and service providers involved, the nature and value of the contracts involved, and such proof as may be deemed necessary by the European Commission to determine that the relationship between the parties to these contracts is in conformity with the requirements set out in this Section. (7) This Act shall not apply to the conclusion of public service contracts, if in accordance with Article 30 of Directive 2004/17/EC the European Commission determines that the activities in question are being pursued under the conditions of genuine competition, and makes a decision to this effect, or if the Commission has not adopted a decision within the time limit specified. (8) The procedure of the European Commission shall be governed by Article 30(5) and (6) of Directive 2004/17/EC of the European Parliament and of the Council and by Commission Decision 2005/15/EC. The provisions relating to requesting the procedure of the European Commission, including the means of submission of the petition, are laid down in specific other legislation. In the procedure for establishing whether a given activity is directly exposed to competition, conducted under Article 30 of Directive 2004/17/EC of the European Commission, the tasks set out in the decree on the special regulations relating to public procurements of public service bodies laying down provisions relating to requesting the procedure of the European Commission, including the means of submission of the petition, and to the disclosure of all relevant facts concerning compliance with the requirement that activities are being pursued under the conditions of genuine competition shall be carried out by the Gazdasgi Versenyhivatal (Hungarian Competition Authority).

PART THREE National Procedures

Section 119 Contracting entities shall proceed in accordance with this Part in connection with procurements below the EU threshold which, however, reach the national limits, and also in connection with service concessions. Moreover, the procedure under this Part may also apply in the cases where so permitted by Chapter III of this Act [Subsection (3) of Section 18, Subsection (2) of Section 19].

Exemptions
Section 120 This Act shall not apply to contracts below the EU threshold, relating to: a) purchases of textbooks, which are listed in the register of textbooks, if awarded in accordance with the provisions laid down in the Act on the Textbook Market to be supplied in schools; b) supplies and services obtained with a view to providing care for children under Act XXXI of 1997 on Child Protection and Custody Administration in a childrens home or in private homes, and to children participating in the post-care assistance program, or to provide care for persons within the framework of social services under Sections 59-85/A of Act III of 1993 on Social Administration and Social Welfare Benefits; c) hotel and restaurant services, and recreational, cultural and sporting services referred to in Schedule No. 4;

d) purchases made within the framework of international aid provided under humanitarian considerations, or for reasons of crisis management, where the competent parliamentary committee has adopted a prior decision to preclude the application of this Act; e) purchases of cold foodstuff and cooking ingredients, fresh and processed fruits and vegetables, raw milk and dairy products, cereals, bread and other bakery products, honey, eggs, garden products; f) public service contracts relating to contracting entities fulfilling their principal duties in the creation of literary works (technical or scientific), or for consulting or interpretation services; g) activities of official consultants for public contracts; h) Paragraphs e), f), i), k) of Section 3 of Act LXXIV of 1999 on the Supervision and Organization of Disaster Relief Operations and the Control of Severe Accidents Involving Dangerous Substances; and purchases made in the case of crisis and emergency situations, in connection with efforts for the prevention of outbreaks of diseases among animals, control of damage resulting from industrial or traffic accidents, eliminate water-quality damage, and with the cleanup of flood damage in a state of emergency defense alert; i) purchases of goods and/or services, and public works contracts within the framework of the mandatory employment of detainees. j) purchases of goods and/or services supplied by public employers within the framework of public benefit employment, as well as public works contracts; k) credit and loan received under Act CXII of 1996 on Credit Institutions and Financial Enterprises. l) purchases made by the body providing the services referred to in Paragraph d) of Subsection (2) of Section 114.

Rules of Procedure
Section 121 (1) In connection with the award of public contracts under this Part, contracting entities: a) shall be able to devise the procedure at their own discretion in the case and by way of the means specified in Section 123, or b) shall proceed in accordance with the rules set out in Part Two of this Act, subject to the exception set out in Section 122. (2) In the case under Paragraph b) of Subsection (1), in addition to Part Two of this Act, the specific rules set out in Chapter XIV shall also apply to public service contracts [Subsection (2) of Section 114], also in accordance with the criteria specified in Section 20. Section 122 (1) Contracting entities shall have the option to prescribe in the notice published for setting the procedure in motion the enforcement of one or more of the grounds for exclusion under Sections 56-57, and must prescribe the enforcement of the grounds for exclusion under Paragraph k) of Subsection (1) and Subsection (2) of Section 56 in public procurement procedures. Tenderers shall only be liable to declare of being unaffected by the grounds for exclusion, and shall be required to supply documents in accordance with specific other legislation in connection with Subparagraph kc) of Subsection (1) of Section 56. (2) Contracting entities are required to draw up tender documents in connection with public works contracts, and shall have the option to do so in other cases, where in the case of supplies of goods or services it shall suffice to include in the tender documents the contract terms and conditions instead of a draft contract (hereinafter referred to collectively as draft contract).

(3) In open and restricted procedures - with the exception of accelerated procedures - the contracting entity may not set the time limit for the receipt of tenders at less than twenty days from the date of dispatch of the notice published for setting the procedure in motion or the date of dispatch of the invitation to tender. In the participation stage of procedures comprising more than one stage, the time limit for participation shall be sufficiently long to permit the submission of requests to participate responsively. (4) Negotiated procedures with prior publication of a contract notice and competitive dialogue procedures may be used under any and all circumstances. (5) The contracting entity shall be required to supply the additional information in due time before the expiry of the time limit for the receipt of tenders and the time limit for participation. (6) It shall suffice to have the notice of change relating to the time limit for the receipt of tenders or the time limit for participation, the notice published for setting the procedure in motion or the tender documents dispatched before the initial time limits, without having to publish them, however, the economic operators having expressed their interest for the procedure, notably if they obtained the tender documents or requested additional information, shall be informed at the same time of the intent to make changes and on the dispatch of the notice of change directly in writing before the initial time limit for the receipt of tenders or the time limit for participation expires; before the notice of change is published, actions in the public procurement procedure may not be taken, decisions may not be adopted and documents may not be submitted. (7) The contracting entity may use the negotiated procedure without prior publication of a contract notice in the following cases as well: a) if the estimated value of the supplies or services is below twenty-five million forints, or the estimated value of the public works is below one hundred and fifty million forints; b) where it is possible to procure supplies taking advantage of a particularly advantageous opportunity available to all interested persons for a very short space of time at a price considerably lower than normal market prices, and where this opportunity would not be available in the procedure under this Part; c) where a procurement procedure concerns a foreign mission. (8) Subsection (1) of Section 100 shall not apply in connection with Paragraph a) of Subsection (7) hereof. Contracting entities shall ensure competition in the cases under Paragraphs a) and c) of Subsection (7) and shall invite at least three tenderers to submit a tender. In the case of Paragraph a) of Subsection (7) invitation shall be sent to economic operators recognized as micro, small or medium-sized enterprises, or which are budgetary authorities, and if the contracting entity considers that they are likely to be able to meet the requirements relating to their ability concerning the performance of the contract. The restriction set out in Subsection (4) of Section 3 of Act XXXIV of 2004 on Small and Medium-sized Enterprises and the Support Provided to Such Enterprises shall not apply in these procedures. (9) Contracting entities shall have authority to reserve the right of participation in the public procurement procedures to tenderers whose annual income - exclusive of value added tax - is below one hundred million forints in the case of supplies and services, and one billion forints in the case of public works contracts, whose subcontractors are also able to satisfy this requirements set out in this Subsection, and who are able to satisfy the prescribed selection criteria relying on the capacities of other bodies which are also able to meet the requirements set out in this Subsection. (10) Subsection (9) applies to public works contracts and public works concessions only if the value of the contract does not exceed five hundred million forints. (11) The Government is vested with powers to specify certain conditions and requirements to be considered binding upon the budgetary authorities it controls and also upon State-owned economic operators, underlying the application of Subsections (9)-(10). (12) In the case under Paragraph b) of Subsection (1) of Section 79 pre-contractual remedy may be requested before the time limit for the receipt of tenders and the time limit for participation.

Section 123 (1) In connection with the award of public supply contracts and public service contracts below the EU thresholds, contracting entities shall have the option to set their own procedural rules independent of the provisions of Part Two of this Act. (2) Contracting entities may not switch from the type of procedure they have selected to another in the course of public procurement procedures; where procedural rules are laid down by the contracting entities of their own motion, these rules must be disclosed in the notice published for setting the procedure in motion. The notice published for setting the procedure in motion shall - under all circumstances - contain facilities to guarantee equal opportunities for all tenderers in preparing their tenders, or to submit their request to participate. (3) The notice published for setting the procedure in motion shall contain all information deemed necessary for the economic operators in the interest of responsive tendering (request to participate), such as in particular the most important parts of the contract to be awarded (the subject-matter and volume of the procurement, contract terms and conditions) and a brief description of the award procedure (evaluation criteria and method), the time limit for the receipt of tenders (participation), and contact information for the contracting entity. The contracting entity shall provide for the opening of tenders at the time and place indicated in the notice published for setting the procedure in motion. The notice shall be published drawn up in accordance with the model given in specific other legislation. (4) Contracting entities shall have the option to prescribe in the notice published for setting the procedure in motion the enforcement of one or more of the grounds for exclusion under Sections 56-57, however, grounds for exclusion in derogation from the provisions of this Act may not be prescribed. Contracting entities shall prescribe the enforcement of the grounds for exclusion under Paragraph k) of Subsection (1) and Subsection (2) of Section 56 in public procurement procedures. As regards the competence of tenderers, in addition to the methods of certification of qualifications laid down in specific other legislation, the contracting entity may prescribe other objective criteria for competence and other certificates as well, however, the provisions contained in Subsection (3) of Section 55 shall apply nonetheless. (5) In determining the procedural rules according to Subsection (1), contracting entities shall provide for a sufficient degree of publicity of the procedures in accordance with this Act. (6) Contracting entities shall ensure equal access (right to participation) for all economic operators established in the European Union, mutual recognition of diplomas, certificates or other evidence of formal qualifications, sufficient time limits for the submission of tenders (requests to participate), as well as the drawing up of regulations ensuring the disclosure of procedural rules in advance, and the enforcement of the principles of non-discrimination and equal treatment in rendering the final decision of the award procedure. (7) Contracting entities shall make available a description of the subject-matter of the contract in a nondiscriminatory manner; contracting entities may not draft the public procurement technical specifications to include clauses eliminating certain economic operators or products from the procedure or that result in any discrimination in the favor of or to the detriment of them. However, if reference to a specific object, procedure, activity, person, and/or patent or trade mark of a specific origin and type is necessary in order to provide a description of the subject-matter of the contract that is sufficiently precise and intelligible, the specifications shall indicate that such description was made solely for the purpose of having the nature of the object clearly defined if such indication is accompanied by the words or equivalent. (8) The Government is vested with powers to lay down mandatory procedural rules in accordance with Subsections (1)-(7) relating to public supply contracts and public service contracts below the EU thresholds to be considered binding upon the budgetary authorities, public foundations it controls and also upon State-owned economic operators. (9) The contracting entity shall inform all tenderers, candidate tenderers and, before the opening procedure, the economic operators having expressed their interest for the procedure, in writing concerning all decisions and information which are likely to have an impact on the outcome of the procedure, including detailed reasoning, at the earliest opportunity after the decision, in any case within three working days at the latest. The contracting entity, following the evaluation of tenders, shall draw up a written report - and send it to all tenderers simultaneously, by

way of fax or electronic means - containing information on the evaluation of tenders and the reasons for awarding the contract to the successful tenderer. (10) The contracting entitys own procedural rules drawn up according to Subsection (2) must contain the disqualification criteria under Subsections (1) and (3) of Section 74, while the criteria under Subsection (2) of Section 74 is optional, with the exception that the disqualification criteria under Paragraph d) of Subsection (1) of Section 74 applies only if any requirement for suitability is prescribed. (11) The provisions of Sections 80-81 shall apply to these procedures mutatis mutandis.

PART FOUR Public Contracts Contracting

Section 124 (1) Upon the successful conclusion of a public procurement procedure the contract shall be concluded with the successful organization (person) - or with the successful grouping of tenderers where applicable - in writing in accordance with the final terms and conditions and the contents set out in the draft contract and in the tender established during the procedure. (2) The contract shall contain - in respect of the criteria based on which to award the contract - the elements of the successful tender that were evaluated. (3) If the contracting entity allowed tendering for individual lots, the contracts for these lots shall be awarded to the successful tenderers. (4) The contracting entity shall be bound to conclude the contract with the successful tenderer, or - in the event of the successful tenderers withdrawal - with the organization (person) declared second in the process of the evaluation of tenders, provided that this organization or person is indicated in the written report made on the evaluation process. (5) From the date of dispatch of the written report made on the evaluation of tenders to the tenderers, the binding period of the successful tenderer and - in the case under Subsection (4) - the binding period of the tenderer rated second shall be extended by an additional thirty days, or sixty days in the case of public works contracts. (6) The contracting entity shall conclude the contract during the binding period referred to in Subsection (5), however, unless otherwise provided for in this Act, the contract may not be concluded before the expiry of a ten-day period following the date of dispatch of the written report. (7) If a petition [Subsection (2) of Section 137] or initiative [Section 140] for review is submitted, the contract including the one pertaining to the lot affected by the review procedure under Subsection (3) hereof - may not be concluded before a decision is adopted on the merits of the case or before a ruling is rendered in conclusion of the public contract in question, except if the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) has authorized the conclusion of the contract [Subsection (4) of Section 144]. If the binding period of the successful tenderer has expired in the meantime, the contracting entity may nevertheless award the contract if the successful tenderer agrees to maintain his tender. (8) By way of derogation from Subsection (6), the contract may be concluded before the ten-day period fixed therein: a) in open procedures, if only one tender had been submitted; b) in restricted procedures, negotiated procedures with publication of a contract notice or competitive dialogue procedures, if only one tender had been submitted, and if any request to participate or tender had been disqualified,

and the time limit for lodging a request for review procedure by the parties affected against the decision thereof had already expired, or the Kzbeszerzsi Dntbizottsg found the decision lawful; c) if a negotiated procedure without prior publication of a contract notice was opened pursuant to Paragraph d) of Subsection (2) of Section 94; d) in connection with contracts to be concluded under a framework agreement, except if the contract is awarded upon the re-opening of competition [Paragraph b) of Subsection (4) of Section 110]. (9) The contracting entity shall be released from the obligation of contracting with the successful organization (person) only if unable to conclude or fulfill the contract due to any unforeseen and unavoidable circumstance beyond its control that has occurred following the date of dispatch of the written report made on the evaluation of tenders.

Contents of the Contract

Section 125 (1) The contracting entity may prescribe conditions for performance of a specific contract, such as in particular social, environmental protection and quality assurance requirements. Reference to such contract conditions shall be made in the notice published for setting the procedure in motion, and they shall be indicated in the draft contract in the tender documents. (2) The application of Subsection (1) may in no case result in any discrimination in the favor of or to the detriment of tenderers, furthermore, the contract notice may not prescribe performance of the contract contingent upon any requirement relating to the public procurement technical specifications, the tenderers fin ancial and economic standing and compliance with the prescribed technical and professional requirements, nor any condition the contracting entity has previously declared as evaluation criteria. (3) For the purposes of Subsection (1), social requirements shall, in particular, mean: a) when the contract is discharged by way of the involvement of sheltered employment or a body authorized to operate social employment programs; b) the employment of job-seekers and unemployed persons, or detainees; c) the part-time employment of persons drawing child-care allowance and child-rearing allowance while receiving such benefits and afterwards, and of persons drawing maternity benefits and child-care allowance after the benefits are terminated; d) adopting measures intended to enforce the principle of equal treatment. (4) The contracting entity shall introduce the following terms and conditions in the contract: a) the successful tenderer shall not pay or claim any expenses in connection with the performance of the contract which are incurred with respect to a company that fails to comply with the requirements set out in Paragraph k) of Subsection (1) of Section 56, and which can be applied to reduce the successful tenderers taxable income; b) the successful tenderer shall disclose its ownership structure to the contracting entity throughout the full life of the contract and shall inform the contracting entity concerning the transactions referred to in Subsection (5) without delay. (5) The contracting entity shall have the right and shall be required to terminate the contract - allowing ample time, if deemed necessary, to providing for having its duties affected by the contract discharged - if:

a) any legal person or unincorporated business association that is unable to comply with the requirements set out in Paragraph k) of Subsection (1) of Section 56 acquires, directly or indirectly, an ownership interest of 25 per cent or more in the successful tenderer, b) the successful tenderer acquires, directly or indirectly, an ownership interest of 25 per cent or more in any legal person or unincorporated business association that is unable to comply with the requirements set out in Paragraph k) of Subsection (1) of Section 56. (6) Where the contract is terminated pursuant to Subsection (5), the successful tenderer shall be entitled to financial reward for services performed before the contract was terminated in a proportionate amount of the contract price. (7) The successful tenderer, if taxable under the national laws of the country where established, shall provide an authorization enabling the Hungarian tax authority to contact the tax authority of the country where established directly for the purpose of obtaining information concerning the successful tenderer, without resorting to international legal assistance. (8) The contracting entity shall define in the notice published for setting the procedure in motion the term of the contract without being tied to an indefinite duration or to an unreasonably long fixed term where this is not justified by the subject-matter of the contract, the contract arrangement or the related payment terms or the investment made by the successful tenderer, where such commitment is against the principle of maintaining effective competition and the prudent spending of public funds. (9) Where the parties agreed in a public works contract to set up a reserve funds account, the amount set aside may not exceed 5 per cent of the contract price. (10) The contract may contain provisions which are know to all tenderers in advance, stipulating explicitly the precise conditions for, and the contents of, future changes in certain specific contract clauses. In the case of such provisions, the applicability of the conditions set out in Section 132 shall be ascertained, however, the proposed changes shall not entail major changes in the subject-matter of the contract. Section 126 (1) Contracting entities shall be entitled to demand guarantees in the contract to be awarded; this criteria and the type and amount of guarantee(s) required must be specified in the notice published for setting the procedure in motion. (2) The guarantee prescribed in security of any claim that may arise out of or in connection with non-performance of the contract may not exceed five per cent of the contract price, exclusive of value added tax. (3) The guarantee prescribed in security of any warranty and guarantee claims that may arise out of or in connection with defective performance of the contract may not exceed five per cent of the contract price, exclusive of value added tax. (4) Guarantees for non-performance shall be made available at the time of contracting, guarantees for warranty claims shall be made available at the time of the beginning of the warranty obligation, and guarantees for guarantee claims shall be made available at the time of expiry of the warranty period or if there is no warranty clause in the contract, at the time of performance. Other guarantees are to be provided - under the conditions set out in the contract - at the time from which the event to which the guarantee pertains may occur, in any case, it may not be earlier than the date on which a contract is concluded. (5) Tenderers shall enclose a statement in the tender on making available the guarantees specified in Subsection (4) in due time; other form of verification, statement may not be requested in public procurement procedures concerning the said guarantees. (6) Where any guarantee for covering warranty and guarantee claims, or other form of guarantee is required, the contracting entity shall, in the notice published for setting the procedure in motion:

a) prescribe that the guarantees may be provided by the time limits referred to in Subsection (4) either by way of credit transfer to the contracting entitys payment account, or by bank guarantee or in the form of a performance bond - containing surety facilities - supplied by an insurance company under contract according to the choice of the contracting tenderer; or b) designate one or more forms of guarantee, other than those described in Paragraph a), and shall indicate that the contracting tenderer has the option to provide the guarantee in either of these forms or by the means set out in Paragraph a). (7) As regards the guarantees required for covering warranty and guarantee claims the contracting entity may introduce a clause in the contract to permit that the guarantee, or a specific amount thereof, may be deducted from any progress payment that is due to the tenderer, instead of having it transferred to its payment account as per Paragraph a) of Subsection (6) hereof. (8) The successful tenderer to whom the contract is awarded may switch from one type of guarantee specified in Subsection (6) to another, however, the guarantee must be available at all times, without any interruption, in the amount fixed in the contract.

Ineffective Contracts
Section 127 (1) A contract governed under this Act shall be declared null and void if: a) it was concluded by the unlawful omission of a public procurement procedure; b) it was concluded by a negotiated procedure without prior publication of a contract notice, where the conditions prescribed for negotiated procedures without prior publication of a contract notice were not satisfied; c) the parties entered into the contract in breach of the provisions relating to the standstill period [Subsection (5) of Section 79, Subsections (6)-(7) of Section 124], and this infringement has deprived the tenderer applying for review of the possibility to pursue pre-contractual remedies, where such an infringement is combined with an infringement of regulations relating to public contracts, if that infringement has affected the chances of the tenderer applying for a review to obtain the contract. (2) By way of derogation from Subsection (1), the contract shall not be declared null and void if: a) the reason for the contracting entity to forego the conduct of a public procurement procedure upon the publication of a contract notice, or for the signature of a public contract without an award procedure [Paragraph k) of Subsection (1) of Section 9], is that it has considered that signing a contract following a public procurement procedure launched without a contract notice, or without a public procurement procedure is legitimate in accordance with this Act, furthermore, if the contracting entity has made know its intent of contracting by way of a notice prepared according to the model prescribed in specific other legislation, and did not sign the contract (agreement) inside a period of ten days following the date of publication of the contract notice; b) overriding reasons relating to a general interest require that the effects of the contract should be maintained. (3) Economic interests directly linked to the contract (such as in particular, the costs resulting from the delay in the execution of the contract, the costs resulting from the launching of a new procurement procedure, the costs resulting from the change of the economic operator performing the contract and the costs of legal obligations resulting from the ineffectiveness) shall not constitute overriding reasons. Economic interests in the effectiveness of a contract may only be considered as overriding reasons if in exceptional circumstances ineffectiveness would lead to disproportionate consequences. (4) Any clause of a public procurement contract shall be null and void if:

a) it excludes or restricts the application of the legal consequences pertaining to any breach of contract on the part of the contracting entity, or b) it contains any derogation from the provisions of Subsections (2) and (3) of Section 301/A of the Civil Code to the beneficiarys detriment as regards default interest. (5) The provisions of this Act shall not exclude the application of Subsection (2) of Section 200 of the Civil Code in terms of the declaration of annulment of a contract concluded in violation of the regulations governing public procurements or contract award procedures.

Contract Performance
Section 128 (1) The contract awarded following the public procurement procedure shall be performed by the successful tenderer, or grouping of tenderers, to whom the contract was awarded, or - if the contracting entity permits or requires the establishment of a business association (Section 27) - by the business association established and owned exclusively by the successful tenderer (tenderers) (hereinafter referred to as project consortium). (2) Subject to the exception set out in Subsection (3), any subcontractor and technician who was involved in the public procurement procedure in verifying the tenderers suitability must participate in the execution of th e contract awarded to the contracting tenderer. The tenderer shall notify the contracting entity of his intention to involve any subcontractor who was not named in the tender, for replacing a subcontractor previously indicated or for other reasons, and shall simultaneously provide a statement declaring that the subcontractor in question is not covered by any of the grounds for exclusion under Section 56, or under Section 57 if the contracting entity so prescribed in the previous public procurement procedure. (3) A subcontractor or technician (hereinafter referred to as subcontractor) who was involved in the public procurement procedure in verifying the tenderers suitability, may be replaced by another subcontractor upon the contracting entitys prior consent, and only if, due to events unforeseeable at the time of contracting, or due to the defective performance of the subcontractor it becomes evident following signature of the contract that any part or all of the contract cannot be fulfilled with the involvement of the designated subcontractor, and if the tenderer remains able to satisfy the requirements for suitability together with the new subcontractor as well and that the contracting tenderer was able to satisfy in the public procurement procedure together with the subcontractor in question. (4) The subcontractor cannot be replaced where the involvement of a certain specific subcontractor was considered a decisive factor in the process of evaluation of tenders for the public procurement procedure in light of the special characteristics of the given service [Subsection (4) of Section 63]. (5) The successor of the contracting tenderer shall be authorized to perform the obligations mentioned in Subsections (1)-(2), or the successor of the subcontractor, if other than a natural person, if either one of them is transformed in the case of business associations or dissolved by way of succession in the case of organizations. (6) Section 129 (1) Where the successful tenderer (tenderers) propose to establish a project consortium for the execution of the public procurement contract, the contract shall have a clause installed to declare that rights and obligations set out in the contract are conferred upon the project consortium from the time of establishment of the project consortium. In this case the subcontractors indicated in the tender shall conclude the contract or contracts necessary for the execution of the public procurement contract with the project consortium. (2) The contracts concluded between the contracting entity and the project consortium shall be governed by the relevant regulations on public procurement contracts, such as in particular, the provisions of this Act and other

legislation pertaining to the publicity of contracts, to content requirements and to the amendment of public procurement contracts, and also to the supervision of the execution of these contracts. (3) The project consortium and the successful tenderer (tenderers) shall be jointly and severally liable for the performance of the contract. (4) The activities of a project consortium shall be limited to the execution of the public procurement contract, including contracting, it may not acquire any share in another business association and it may not be transformed. (5) Apart from the successful tenderer (tenderers) no other person may acquire any share in a project consortium. The founders shall not be authorized to withdraw the project consortiums subscribed capital and its other assets, except for dividends. (6) The successful tenderer (tenderers) shall be able to terminate the project consortium if: a) the project consortium has fulfilled the commitments laid down in the public procurement contract and settled all accounts (receivables and payables) with the contracting entity, or b) the successful tenderer (tenderers) assumed all rights and obligations stemming from the public procurement contract, and from contracts concluded in connection with the execution of the public procurement contract from the project consortium in full. (7) A project consortium may be used as reference in terms of performance and for the purpose of verifying suitability and/or income by the owners of the project consortium, provided that they actually participated in performance - up to the extent of their involvement -, also if the project consortium was wound up in the meantime. (8) If the successful tenderer is requested to establish a business association, the contracting entity may cancel the contract in the event that the contracting tenderer fails to submit the articles of association or the statutes to the court of registry within twenty days from signing the contract. (9) Where a particular public works concession is covered by the Act on Concessions as well, the provisions of this Section and Section 132 shall apply subject to the exceptions set out in the Concession Act pertaining to concession contracts and concession companies. Section 130 (1) The contracting entity shall provide a written statement concerning his acceptance of performance as contracted (verification) or for his refusal of acceptance within fifteen days following performance of the contract by the contracting tenderer or of receipt of the written notice thereof. (2) In connection with public works contracts, if the contracting entity fails to commence the delivery-acceptance procedure when so requested by the contracting tenderer in writing (notice of completion), within fifteen days past the time limit prescribed for the opening of the delivery-acceptance procedure, or if the procedure is not concluded within the time limit fixed in the contract, which may not exceed twenty-five days, the contracting entity shall supply a certificate of performance at the request of the contracting tenderer. If the delivery-acceptance procedure involves a trial run according to specific other legislation or if so ordered by the competent authority, the parties may agree in a delivery-acceptance period of more than twenty-five days. (3) The contracting entity, or the paying agency where any financial aid is received for the procurement (for the purposes of this Section hereinafter referred to as contracting entity) shall effect payment of the contract price as per the following provisions: a) the payment period may not exceed thirty days following the date of receipt of the invoice by the contracting entity (entities); the date of receipt of the invoice may not be the object of an agreement between the parties; b) if the date of receipt of the invoice cannot be established beyond doubt or the contracting tenderer submits the invoice before performance, the payment period may not exceed thirty days following the date of performance as

contracted, by way of the means and contents specified in the contract (in the case of public works contracts, the date of conclusion of the delivery-acceptance procedure). (4) The payment period fixed in the contract may exceed the time limits referred to in Paragraphs a)-b) of Subsection (3) only if the parties agreed to allow deferred payment of the contractual consideration, provided that this is in fact justified on account of the selected contractual arrangement or due to other unique circumstances, the payment period, however, must not exceed sixty days even in this case. (5) The parties may agree to defer payment of the contractual consideration, in this case, however, the provisions of this Act pertaining to payments shall apply to all installments. (6) The contracting entity shall be entitled to include those of his overdue claims that are of the same type due from the creditor to offset his debts from unpaid considerations relating to a public procurement contract. Section 131 (1) If the contract to be awarded concerns public works or services in a value reaching the EU thresholds, and the term of the contract is longer than two months, the tenderer may request a prepayment covering 5 per cent of the full contract price, or maximum 10 million forints. (2) The provisions contained in Subsection (1) hereof shall not preclude the parties to stipulate in the contract a higher prepayment amount. (3) The conditions laid down in Section 130 and in this Section shall comprise an integral part of the contract even if the parties did not include any stipulations to this effect, or if they have agreed otherwise. As regards public works contracts, special provisions may be laid down in a government decree concerning the terms and condition of payment of the price contracted.

Amendment or Modification of Public Contracts

Section 132 (1) Parties shall not be authorized to amend the part of any contract awarded in public procurement procedures defined in the invitation to tender, the terms and conditions of the tender documents, and/or on the basis of the contents of the tender if: a) the amendment introduces certain conditions which - had they been included in the procedure before the contract was awarded - would have made the participation of other tenderers (candidate tenderers) possible besides the tenderers (candidate tenderers) originally participating, or the award to be made to another tender instead of the one submitted by the successful tenderer; or b) the amendment turns the economic balance of the contract to the successful tenderers benefit; or c) the amendment introduces a new element as regards the subject-matter of the contract relative to the tenderers obligation fixed in the original contract. (2) Paragraph a) of Subsection (1) shall not apply if the amendment of the contract was justified by any circumstance arising after the contract was awarded, and the contract infringes upon any substantial and lawful interest of one of the parties brought about by events unforeseeable at the time of contracting. Where the change concerns any clause of the contract based on which the tenders had been evaluated in the public procurement procedure [Subsection (4) of Section 63], the contracting entity shall inform all tenderers having participated in the procedure, including a detailed statement of reasons. (3) In the application of Paragraph b) of Subsection (1), any increase of the original consideration fixed in the contract by more than 5 percent shall be considered to have changed the economic balance of the contract to the successful tenderers benefit.

PART FIVE Review Procedures Related to Public Procurement Procedures

Section 133 (1) In the event of any illegal conduct or infringement in public procurements or contract award procedures, classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, review procedures may be initiated in accordance with the provisions contained in this Part. (2) All disputes arising in connection with public contracts concluded following an award procedure - other than the actions launched upon any contract amendment made in violation of this Act or a government decree adopted by authorization of this Act -, and any civil claim in connection with contract award procedures shall fall within the jurisdiction of the court. (3) Any reference made in this Part to public procurement and contract award procedures shall also mean design contests. (4) Any reference made in this Part to public procurement and contract award procedures shall also mean classified and defense procurement procedures. (5) As regards review procedures relating to classified procurements and classified contract award procedures, where any reference made in this Part to this Act - except where such reference is made to the provisions of this Part relating to review procedures -, it shall be understood as the Government Decree on Procurements Affecting Classified Information, Which are Related to Fundamental National Security or Defense Concerns and Requiring Special Security Measures. (6) As regards review procedures relating to defense procurements and defense contract award procedures, where any reference made in this Part to this Act - except where such reference is made to the provisions of this Part relating to review procedures -, it shall be understood as the Government Decree on the Special Provisions Relating to Purchases of Goods and Services Affecting Essential Security Interests in the Field of National Defense, Made Expressly for Military and Law Enforcement Purposes. (7) The court shall have jurisdiction to hear all disputes and review procedure connected to classified procurements and classified contract award procedures in the following cases: a) in the case of procurements where the Government has declared by way of a decree that the application of the Community procurement procedure would require Hungary to disclose information that would endanger the very existence of a security program which is essential for the States security interests; b) in the case of particularly sensitive purchases; c) in the case of procurements for intelligence and counter-intelligence activities.

General Provisions Relating to the Proceedings of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board).
Section 134 (1) Unless this Act and the government decree adopted by authorization of this Act provides otherwise, the provisions of Act CXL of 2004 on the General Rules of Administrative Proceedings (hereinafter referred to as APA) shall apply to the functions of the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board). (2) Actions launched in connection with any infringement involving public procurements and contract award procedures, classified procurements and classified contract award procedures, defense procurements and defense

contract award procedures, including the procedures opened in connection with the refusal of applications for qualification or with removal from the register of qualified candidates according to the government decree laying down special provisions for the proceedings under Chapter XIV (hereinafter referred to as review procedures relating to qualifications), shall fall within the competence of the Kzbeszerzsi Dntbizottsg. (3) Actions launched in connection with public contracts concluded following an award procedure upon any amendment or performance carried out in violation of this Act or the government decree adopted by authorization of this Act, and any breach of the procedural rules drawn up by the tenderer on its own accord pursuant to Section 123, including omissions, shall fall within the competence of the Kzbeszerzsi Dntbizottsg. (4) The Kzbeszerzsi Dntbizottsg shall have powers to rule on disputes in connection with any infringement under Subsections (1)-(2) hereof if committed by an organization (person) voluntarily applying this Act. (5) The jurisdiction of the Kzbeszerzsi Dntbizottsg covers the entire territory of the country. (6) The Kzbeszerzsi Dntbizottsg shall have no competence as regards admission to the register in classified procurement procedures, or to decide the lawfulness of any action or procedure for removal from register. (7) In the course of the review of classified procurement procedures the Kzbeszerzsi Dntbizottsg shall have no authority to pass judgment regarding the prior decision adopted by the competent Parliament committee to preclude the application of this Act.

Public Procurement Arbitrators

Section 135 (1) Subject to the exception set out in Subsection (4), the cases specified under Subsections (2)-(4) of Section 134 (hereinafter referred to as public procurement action) shall be heard by a panel of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) consisting of three public procurement arbitrators. The panel shall adopt its decisions by majority voting. (2) The chairman of the Kzbeszerzsi Dntbizottsg shall appoint the panel of arbitrators and the presiding umpire. Of the three public procurement arbitrators comprising the panel at least two shall have a law degree and one a university or college degree in the field primarily connected with the subject of the matter. The presiding umpire of the panel of arbitrators must have a law degree. In connection with classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, the arbitrator appointed must have the level of security clearance appropriate for the classified or defense procurement procedure in question. (3) The duties of the umpire of the panel of arbitrators shall include to make the necessary preparations and to preside over the proceeding. Apart from taking interim measures and the passing of a ruling in conclusion of a public procurement action [Subsections (3) and (4) of Section 139, and Section 30 and Subsection (1) of Section 31 of the APA], and apart from rendering a decision on the merits of a case (hereinafter referred to as judgment) (Section 152) the presiding umpire shall have powers to take any action and to adopt any ruling conferred by this Act under the competence of the Kzbeszerzsi Dntbizottsg. (4) The case defined in Section 141 shall be handled by a sole arbitrator of the Kzbeszerzsi Dntbizottsg. The sole arbitrator appointed by the chairman of the Kzbeszerzsi Dntbizottsg must have a law degree. Any reference hereinafter made in this Act to the panel of arbitrators (presiding umpire) shall also mean sole arbitrators. Section 136 (1) In public procurement actions - in addition to what is contained in Subsections (1) and (3) of Section 42 of the APA - the following public procurement arbitrators may not be assigned: a) those with any ownership interest in the contracting entity or in any entity unlawfully acquiring supplies without a public procurement procedure, in the tenderer or in any other organization concerned requesting the procedure (hereinafter referred to collectively as client -organization);

b) those with any ownership interest in an organization which maintains regular business relations with a clientorganization; c) those who - within two years prior to the date of the opening of the review procedures - have been in the employ of the client-organization under contract of employment or in any other employment relationship, or have been a member or an executive officer, or had a seat in the supervisory board of the client-organization, or have an ownership interest therein. (2) A public procurement arbitrator may not be assigned in public procurement actions whose relative: a) is in the employ of the client-organization under contract of employment or in any other employment relationship, or is a member or executive officer, or holds a seat in the supervisory board of the client-organization; b) has an ownership interest in a client-organization; c) is in the employ of the client-organization under contract of employment or in any other employment relationship, or is a member or executive officer, or holds a seat in the supervisory board of the client-organization, or has an ownership interest therein, which maintains regular business relations with a client-organization; d) is in a public service legal relationship with an organization, which is a supervisory or subordinated organization of a client-organization, and/or which provided support, and/or exclusive right to a client-organization. (3) Public procurement arbitrators shall report to the chairman of the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) without delay, or in any case within three days from the date of occurrence, of any grounds for his disqualification under this Section or Subsection (1) or (3) of Section 42 of the APA. Failure or undue delay in fulfilling this obligation carries disciplinary and financial liability. (4) The chairman of the Kzbeszerzsi Dntbizottsg shall have authority to decide concerning disqualifications. If the chairman of the Kzbeszerzsi Dntbizottsg is in the panel of arbitrators, the chairman of the Kzbeszerzsi Hatsg (Procurement Authority) shall have authority to decide concerning his disqualification.

Review Procedures
Section 137 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) shall proceed upon request or of its own motion. In classified procurements and classified contract award procedures, defense procurements and defense contract award procedures the Kzbeszerzsi Dntbizottsg shall not proceed of its own motion, and Sections 140-141 and Paragraph e) of Subsection (4) of Section 152 shall not apply. (2) A petition for review may be submitted by the contracting entity, the tenderer, any tenderer of a grouping, the candidate tenderer, any candidate tenderer of a grouping, or any other interested party, whose right or lawful interest is violated or jeopardized by any unlawful conduct or infringement of this Act. Any chamber or trade organization (hereinafter the referred to as petitioner) active in the area covered by the public contract may also lodge a petition if the contract notice, invitation to tender, invitation to participate, the tender documents or any amendment thereof is found unlawful. (3) Subject to the exception set out in Subsection (4), the petition shall be filed within fifteen days of the petitioner gaining knowledge of the infringement, or within ten days in connection with an unlawful decision adopted upon conclusion of the award procedure. After ninety days following the time of occurrence of the infringement no petition may be lodged. (4) In connection with a tender notice, invitation to tender or invitation to participate, the tender documents or any amendment thereof, a petition may be filed up to the fifth day before the time limit for the receipt of tenders or the time limit for participation - modified or original -, however, if the time limit referred in Subsection (3) expires subsequently, the petition may be lodged within the time limit referred to in Subsection (3).

(5) For the purposes of the time limit referred to in Subsection (3), the time of gaining knowledge of the infringement shall mean: a) in connection with an unlawful contract notice, the date of publication or the date of receipt of the direct invitation or, in the case of tender documents, the fifteenth day after the date of making such documents available; b) in connection with a notice published past the prescribed deadline, the fifteenth day following the date of publication of the notice; c) in a decision adopted in conclusion of the public procurement procedure, in connection with any infringement related to the documents, the last day of availability of documents for review, if the petitioner was allowed to review the tender(s) at the contracting entity or the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) within fifteen days of receipt of the written report; d) if pre-contractual remedy was requested in connection with any infringement to which the petition pertains, and the contracting entity did communicate its position regarding the infringement and made no other action, in respect of this infringement the time when the contracting entity communicated its position; e) in connection with any unlawful amendment or performance of a public contract, the thirtieth day following publication of the notice on the amendment, or the thirtieth day after the date publication of the information concerning performance of the contract [Paragraph f) of Subsection (1) of Section 31] by means of posting on a website. (6) For the purposes of the time limit referred to in Subsection (3), the time of occurrence of the infringement shall mean: a) in connection with an unlawful contract notice, the date of publication of the notice, or the date of dispatch of the invitation in connection with direct invitations; b) if the notice is published beyond the prescribed deadline, the date of publication; c) the date of conclusion of the contract for supplies purchased without an award procedure, or if this date is not available, the date of commencement of performance of the contract by either party. (7) Where the petitioner becomes aware that a contract has been awarded for the purchase of supplies without a public procurement procedure after the deadline referred to in Subsection (3), the petition may be submitted within one year following the date of the conclusion of the contract, or if this date is not available, the date of commencement of performance of the contract by either party. (8) The deadlines referred to in Subsections (3)-(7) shall apply with prejudice. (9) Upon submission of the petition the Kzbeszerzsi Dntbizottsg shall take measures without delay to have the description and subject matter of the proceeding published, including the names of the parties and the date of receipt of the petition on the website of the Kzbeszerzsi Hatsg. (10) Prior to lodging the petition the petitioner referred to in Subsection (1) hereof shall be required to notify the contracting entity or the purchasing authority affected, showing the same information as contained in the petition, indicating the alleged infringement. In classified procurements and classified contract award procedures, defense procurements and defense contract award procedures Subsection (9) of this Section and Paragraph d) of Subsection (4) of Section 152 shall not apply. In classified procurement procedures Paragraph h) of Subsection (1) of Section 138 shall not apply to the petition. Section 138 (1) The following shall be indicated in the petition: a) name and registered address (home address) of the petitioner (or his representative), evidence in support of the petition;

b) name and address of the contracting entity to whom the petition pertains, the subject-matter of the procurement, and name and address of the purchasing entity acquiring supplies outside the public procurement system, including the subject-matter of the procurement, in connection with which the review procedure is initiated; c) date of occurrence of the infringement and the date of the petitioner gaining knowledge of it; d) reference to the statutory provision infringed upon; e) a motion requesting the decision of the Kzbeszerzsi Dntbizottsg and the reasons. f) a request for interim measures (Section 332) and the reasons; g) the name and address of any potential party to the public procurement action known to the petitioner; h) an indication as to any pre-contractual remedy was requested, if yes, the outcome of the proceedings, or the contracting entitys reply, that is to be enclosed. (2) For the proceedings of the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) opened upon request an administrative service fee shall be charged in the amount decreed by the Government. (3) The petition shall be submitted in as many copies as there are clients known to the petitioner to participate in the proceeding, plus one extra copy. Section 139 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) shall launch the review procedure on or before the working day immediately following the day when the petition is received in accordance with Subsections (1)-(7) of Section 137 and Section 138. (2) If the petition does not contain the information set out in Subsection (1) of Section 138 or proof of payment of the fee referred to in Subsection (2) of Section 138, or the power of attorney of the authorized representative is not attached, the Kzbeszerzsi Dntbizottsg shall request the petitioner to remedy the deficiencies within eight days, and shall simultaneously indicate that the Kzbeszerzsi Dntbizottsg will reject the petition if failing to meet these requirements when resubmitted. No application for continuation will be accepted upon failure to meet the deadline for remedying deficiencies. In the cases defined by the government decree laying down provisions for the method of payment of the administrative service fee, the Kzbeszerzsi Dntbizottsg shall inform the petitioner of the estimated value on which the administrative service fee is based in the request for remedying deficiencies. (3) In addition to what is contained in Section 30 of the AP A, the Kzbeszerzsi Dntbizottsg shall reject the petition by way of a ruling, without examining the merits of the case, if it finds that: a) the petitioner failed to comply with the request for the subsequent disclosure of missing information in due time, or the petition resubmitted is incomplete; b) the contracting entity has lawfully withdrawn the contract notice or the invitation for the public procurement procedure. (4) The Kzbeszerzsi Dntbizottsg shall terminate the review proceedings by way o f a ruling where the petition should have been rejected outright in accordance with Subsection (3), however, the Kzbeszerzsi Dntbizottsg obtained information concerning the grounds for rejection following the opening of the proceedings. (5) The petitioner may withdraw his request for the opening of proceedings before a decision is adopted on the merits (Section 152). (6) If the Kzbeszerzsi Dntbizottsg dismissed the petition for review without examining its merits, or terminates the review procedure for the reason specified in Subsection (4) by way of a ruling, the administrative service fee shall be refunded to the petitioner. However, the administrative service fee paid for a petition shall not be refunded if the petition is withdrawn.

Section 140 (1) The ex officio proceedings of the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) may be requested by the following bodies and persons upon gaining knowledge of any illegal conduct or infringement of this Act in an official capacity: a) chairman of the Kzbeszerzsi Hatsg (Procurement Authority); b) the llami Szmvevszk (State Audit Office); c) the internal oversight agency appointed by the Government; d) the minister in charge of the judicial oversight of municipal governments; e) the Magyar llamkincstr (Hungarian State Treasury); f) the Commissioner for Fundamental Rights; g) bodies providing financial aid for the procurement in question, or taking part in the appropriation of financial aid on the strength of legislation; h) central purchasing entities authorized to conduct centralized procurement procedures; i) the Gazdasgi Versenyhivatal (Hungarian Competition Authority); j) the body delegated by the Government to oversee the use of financial aids from European Union and other international resources; k) the minister vested with powers to oversee state property; l) the General Prosecutor. (2) The proceedings of the Kzbeszerzsi Dntbizottsg may be invo ked ex officio: a) by the bodies referred to in Paragraphs a), d)-i) and k) of Subsection (1) within thirty days of becoming aware of the infringement, or of the date of conclusion of the contract for supplies purchased outside the public procurement system, or if this date is not available, the date of commencement of performance of the contract by either party, in any case not later than within one year from the time of occurrence of the infringement, or within three years in connection with supplies purchased outside the public procurement system; b) by the bodies referred to in Paragraphs b), c), j) and l) of Subsection (1) above within thirty days of becoming aware of the infringement, in any case not later than within three years from the time of occurrence of the infringement, or from the date of conclusion of the contract for supplies purchased outside the public procurement system, or if this date is not available, within three years from the date of commencement of performance of the contract by either party. (3) The information described in Paragraphs a)-d) and g) of Subsection (1) of Section 138 shall be indicated in the document requesting the Kzbeszerzsi Dntbizottsg to proceed ex officio and a proposal may be made for the provisions set forth in Paragraphs e) and f). Copies of the documents pertaining to the purchase (public procurement) implicated in the infringement shall be attached as available. (4) The Kzbeszerzsi Dntbizottsg shall open the procedure at the latest on the next working day following the day when the request under Subsection (1) is received. (5) If the request does not contain the information referred to in Subsection (3), the Kzbeszerzsi Dntbizottsg shall advise the requesting organization or person to remedy the deficiencies noted. The provisions of Subsection (2) of Section 139 shall also apply to remedying the above-specified deficiencies.

(6) Upon submission of the petition the Kzbeszerzsi Dntbizottsg shall take measures without delay to have the description and subject matter of the proceeding published, including the names of the parties and the date of receipt of the petition on the website of the Kzbeszerzsi Hatsg. (7) The provisions of Subsections (3)-(6) of Section 139 shall also apply where the request is rejected without examination of the merits of the case or where the proceedings are terminated by ruling. Section 141 (1) The chairman of the Kzbeszerzsi Hatsg (Procurement Authority) shall ex officio invoke the proceedings of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board): a) if the contracting entity fails to dispatch its annual statistical report to the Kzbeszerzsi Hatsg by the deadline prescribed in specific other legislation, calculated from the time of receipt of notice from the chairman of the Authority, and b) the body affected refuses to comply with the obligation of registration in the register of contracting entities governed by this Act upon receipt of notice from the Kzbeszerzsi Hatsg, furthermore c) if there is reason to believe that the contract was amended or executed in violation of the relevant provisions of this Act. (2) The provisions contained in Subsections (2)-(7) of Section 140 shall apply to the action referred to in Subsection (1) above. (3) If the chairman of the Kzbeszerzsi Dntbizottsg finds any substant ial evidence upon examination of the documents sent to the Kzbeszerzsi Dntbizottsg concerning the commencement of a negotiated procedure without prior publication of a contract notice suggesting any infringement of the provisions or principles of the regulations governing public contracts and public procurement procedures, he shall launch proceedings ex officio within fifteen days from the date of receipt of the said documents. (4) If the documents supplied by the contracting entity are insufficient to determine the circumstances which justify the use of the negotiated procedure without prior publication of a contract notice, or the lawfulness of the invitation to tender as prescribed, the chairman of the Kzbeszerzsi Dntbizottsg shall request the c ontracting entity in question by way of fax or electronic means to supply the missing information within three days. (5) In the event of the contracting entitys failure to comply, the chairman of the Kzbeszerzsi Dntbizottsg shall decide on taking action based on the information available. Section 142 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) shall notify all parties concerned in the public procurement action on the commencement of the proceeding, and shall request such parties to file any comments they may have within five days. The Kzbeszerzsi Dntbizottsg shall enclose with the notice a copy of the petition, or the document of initiation where the proceedings are opened ex officio. (2) Simultaneously with the above-specified notice, the Kzbeszerzsi Dntbizottsg shall request the contracting entity in question, or the entity acquiring supplies outside the public procurement system, to send all documents available in connection with the procurement or the purchase within five days, or if this is not necessary, the documents specified. The contracting entity, if submitting such petition, shall be required to attach all available documents with the petition. (3) Where the Kzbeszerzsi Dntbizottsg has launched i ts proceedings, the contracting entity may suspend the award procedure in progress, of which the Kzbeszerzsi Dntbizottsg must be notified. The length of suspension of a procurement procedure shall be added to the time limits applicable. Section 143

(1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) may order the joinder of actions brought before it, if their subject matter is interrelated, or if the joinder of cases is justified under the principles of efficiency and feasibility or other procedural factors. In review procedures related to classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, the joinder of cases is permissible only in connection with appeals lodged in the same procurement procedure. (2) The Kzbeszerzsi Dntbizottsg may order the disjoinder of actions brought before it, where certain elements of the case should be heard separately under the principles of efficiency and feasibility, or due to other procedural factors. (3) Where the petitioner has posted several requests relating to the same procurement procedure, the Kzbeszerzsi Dntbizottsg may adopt its decision concurrently. The Kzbeszerzsi Dntbizottsg may adopt a single decision in connection with such cases.

Interim Measures
Section 144 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) shall have powers to impose having regard to all prevailing circumstances upon request or ex officio - interim measures in connection with a public procurement procedure (purchase) under review to remain in force until the contract is concluded following the award procedure in question, if there is imminent danger of any infringement of the provisions or principles of the regulations governing public contracts and public procurement procedures. (2) The Kzbeszerzsi Dntbizottsg may implement the following interim measures: a) order the suspension of the public procurement procedure; b) request the contracting entity under review to allow the applicant to enter the procedure. (3) The length of suspension of a procurement procedure shall be added to the time limits applicable as specified in the tender notice. (4) Where so required by overriding reasons relating to a general interest (including national economic interests), as well as by public interest demanding urgent attention, the Kzbeszerzsi Dntbizottsg - at the request of the contracting entity affected - may take into account the probable consequences of interim measures and may decide to authorize by way of a ruling the conclusion of contracts when their negative consequences could exceed their benefits. The request shall specify the overriding reasons relating to an urgent or general interest of public concern (economic interests), and the public interest demanding urgent attention, with documentary evidence presented to the Kzbeszerzsi Dntbizottsg underlying the request. For the purposes of this Subsection maintaining the security of supply at all times shall, in particular, constitute public interest. With respect to classified procurement procedures and defense procurement procedures, defense and security interest shall, in particular, constitute public interest. The Kzbeszerzsi Dntbizottsg shall adopt a decision within five days upon receipt of the request, and its ruling may not be appealed. (5) With the exception of review procedures lodged in connection with classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, the Kzbeszerzsi Dntbizottsg shall take measures without delay to have its ruling authorizing the award of a contract published on the website of the Kzbeszerzsi Hatsg.

Preliminary Opinion of the European Court of Justice

Section 145 (1) If the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) requests the European Court of Justice to provide a preliminary opinion in accordance with the Treaty establishing the European Community, it shall

be accompanied by a ruling and the proceeding to which it pertains shall concurrently be suspended. The Kzbeszerzsi Dntbizottsg shall define the matter for which the preliminary opinion of the European Court of Justice is required, and shall outline the facts - to the extent required - and the pertinent passages of the Hungarian legal system. The Kzbeszerzsi Dntbizottsg shall - for information purposes - send a copy of its ruling to the minister in charge of the judicial system and the minister vested with powers to oversee state property at the same time when delivering it to the European Court of Justice. (2) The ruling to request the above-specified preliminary opinion may be appealed in accordance with Section 156, upon which the implementation of the ruling shall be suspended.

Scope of the Proceedings of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board)
Section 146 (1) Upon gaining knowledge of any infringement above and beyond the violations already being investigated by a pending legal proceeding requested or initiated prior to rendering judgment (Section 152), the Kzbeszerzsi Dntbizottsg shall proceed to investigate these on its own initiative as well. The proceedings may be extended if the infringement detected might prejudice fair competition or harm publicity requirements or the equal treatment of contracting entities, and had a material impact on the contracting entitys decision. Extension of the proceedings shall be decided by the chairman of the Kzbeszerzsi Dntbizottsg on a recommendation by the acting panel. (2) The Kzbeszerzsi Dntbizottsg shall continue its proceeding following the withdrawal of the petition if there is any evidence suggesting a serious infringement. (3) The Kzbeszerzsi Dntbizottsg, if it detects any acts or circumstances in the procedure implicating the violation of other regulations, shall notify the competent authority, such as the investigation authority, the llami Szmvevszk (State Audit Office), the internal oversight agency appointed by the Government or the Gazdasgi Versenyhivatal (Hungarian Competition Authority). Section 147 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) shall ensure that the petitioner (the claimant) and the adverse party have access to all facts, evidence and motions presented or lodged during the proceeding, and to express their opinions accordingly. (2) The Kzbeszerzsi Dntbizottsg shall forward the comments made according to Subsection (1) of Section 142 by clients and other parties to the public procurement action to the adverse parties and other concerned parties with instructions to make any comments they may have within five days. (3) If the Kzbeszerzsi Dntbizottsg holds a hearing in the case, the clie nts and other concerned parties must present their substantive statements, representations and arguments before the hearing. (4) After the hearing the clients and other concerned parties shall be able to present additional statements and arguments only when so requested by the Kzbeszerzsi Dntbizottsg. The Kzbeszerzsi Dntbizottsg when adopting its decision shall not take into consideration any statements and arguments presented after the hearing without the express request of the Kzbeszerzsi Dntbizottsg. Section 148 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) shall hold the hearing within twenty days of the date of the opening of the proceedings. (2) The hearing held by the Kzbeszerzsi Dntbizottsg may be att ended by the clients and other parties concerned in person or through their representatives, so as to present their views and their evidence prior to the conclusion of the hearing.

(3) The hearing shall be public. The Kzbeszerzsi Dntbizottsg may - with a reasoned ruling - declare the entirety or part of the hearing closed on request or on its own initiative, where it is absolutely necessary for safeguarding classified information, business secrets or other secrets specified in specific other legislation. Where a hearing is held in review procedures relating to classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, the Kzbeszerzsi Dntbizottsg shall hear such cases in closed session. Section 149 (1) The petitioner of a public procurement action (the claimant), the adverse party and their representatives shall have access to the documents of the review procedure and the award procedure to which it pertains in a period of fifteen days after the time of the opening of the proceedings, and members of the Kzbeszerzsi Hatsg (Procurement Authority) shall have access any time during the proceedings, and shall have the right to make copies of these documents and to take notes of them. (2) Contracting entities and tenderers and candidate tenderers may request - citing the safeguarding of business secrets and indicating the reasons - the entitlement of the persons referred to in Subsection (1) to access documents to be lifted or limited with regard to documents and information which are not considered public information or information of public interest. (3) If the tenderer or candidate tenderer has enclosed - separately - in the tender or request to participate any document containing business secrets, or requested to have any document they have submitted during the award procedure to be treated confidentially, as business secrets, it shall be deemed as having requested the entitlement of the persons referred to in Subsection (1) to access documents to be excluded. (4) The Kzbeszerzsi Dntbizottsg is to examine whether the conditions for the restriction or exclusion of accessing documents have been met and may order - where appropriate - in its decision on the request the party affected to produce a replacement document with the business secrets removed. (5) Persons other than the ones referred to in Subsection (1) shall be allowed access to documents of the review procedure and the award procedure to which it pertains, and to make copies of these documents and to take notes of them, if so justified by their lawful interests and if it is not contradictory to regulations concerning the protection of classified information. (6) Without authorization for use, any document that contains any classified information may not be reviewed. Access to other documents containing information which are protected by law shall be restricted if so prescribed by the statutory provision in question, or if the said confidential information is not essential for the party referred to in Subsection (1) requesting access to these documents to exercise his right to legal redress. In review procedures relating to classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, the contracting entity may request - citing national security interest and indicating the reasons - the entitlement of the persons referred to in Subsection (1) to access documents to be lifted or limited with regard to documents and information which are not considered public information or information of public interest. (7) The report of a hearing that was declared closed for reasons of protecting classified information may not be copied and may not be disclosed for taking notes. In these cases the documents may be reviewed - in accordance with the Act on the Protection of Classified Information - subject to the conditions established by the chairman of the Kzbeszerzsi Dntbizottsg. (8) Access to documents in accordance with Subsections (1)-(7) shall be subject to authorization by the Kzbeszerzsi Dntbizottsg. Section 150 (1) The Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) may impose an administrative penalty between fifty and five hundred thousand forints upon the petitioner or any party to the review procedure for:

a) providing incorrect or false information and for withholding information deemed essential for purposes of the case in question; b) failure to supply information in due time; c) obstructing the inspection of documents related to economic, technical or public procurement activities; d) submitting a report aimed at disqualification that is manifestly unfounded, or for submitting an unsubstantiated report against the same public procurement arbitrator in the course of the same proceedings. (2) The administrative penalty may be appealed in accordance with Section 156, upon which the enforcement of the ruling shall be suspended. Section 151 (1) With the exception set out in Subsection (3), the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) shall conclude the proceedings within fifteen days of the date of commencement of the proceedings if no hearing was held. (2) The Kzbeszerzsi Dntbizottsg, if a hearing was held, shall conclude the proceedings - with the exception set out in Subsection (3) - within thirty days of the date of the opening of the proceedings. (3) The Kzbeszerzsi Dntbizottsg shall conclude the proceedings opened in connection with any unlawful amendment or performance of a public contract within sixty days of the date of the opening of the proceedings. (4) The time limit in connection with the joinder of actions under Subsection (1) of Section 143 shall be calculated based on the proceedings last opened. (5) In justified cases, the time limits specified in Subsections (1)-(2) and in Subsection (3) may be extended one time by a maximum ten days or thirty days, respectively, of which the persons who had been notified of the commencement of the proceedings shall be notified before the time limits under Subsections (1)-(3) expire. (6) The proceedings may not be suspended upon the clients request.

Judgments Rendered by the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board)

Section 152 (1) The Kzbeszerzsi Dntbizottsg shall adopt its decisions in the name of the Kzbeszerzsi Hatsg (Procurement Authority). (2) The Kzbeszerzsi Dntbizottsg shall adopt a decision: a) to reject an application if unsubstantiated; b) in proceedings opened ex officio, and those in progress, to establish if there is no evidence of any infringement; c) to establish the fact of infringement; d) to establish the fact of infringement and to apply the sanctions listed in Subsection (3); e) to declare the proceeding unlawful under Subsection (4) and to impose the financial penalties applicable; f) to establish the fact of infringement and to ban - according to specific other legislation - the tenderer or subcontractor affected, or any other organization (person) that is party to the award procedure, from participating in public procurement procedures.

(3) If the decision of the Kzbeszerzsi Dntbizottsg declares any infringement, it may: a) order the offender to abide by the provisions of this Act and conclude the contract award procedure accordingly, and/or may impose certain condition(s) for the contracting entity in its decision; b) annul the decision of the contracting entity made in the course or in conclusion of the contract award procedure, unless a contract has already been concluded on the basis of such decision; c) order the tenderer involved being removed from the official register of qualified tenderers; d) ban the economic operator affected from participating in public procurement procedures in accordance with specific other legislation; e) impose a penalty upon a person or entity engaged in any infringement, or upon a person or entity maintaining contractual relations with the person or entity responsible for the infringement. (4) The Kzbeszerzsi Dntbizottsg shall establish an infringement and impose the appropriate penalty if: a) the infringement constitutes the unlawful omission of the public procurement procedure; b) the parties entered into the contract in breach of the provisions relating to the standstill period; c) the contract was concluded by a negotiated procedure without prior publication of a contract notice, where the conditions prescribed for negotiated procedures without prior publication of a contract notice were not satisfied; d) the contracting entity failed to notify the Kzb eszerzsi Dntbizottsg in the case of a negotiated procedure without prior publication of a contract notice; e) the chairman of the Kzbeszerzsi Hatsg initiated the ex officio proceedings of the Kzbeszerzsi Dntbizottsg (Section 141) and the Kzbeszerzsi Dntbizottsg found the infringement substantiated. (5) The Kzbeszerzsi Dntbizottsg shall base its decision as to whether a financial penalty or imposing a ban upon an economic operator from participating in public procurement procedures is justified, and if yes, and determine the amount of the penalty or the duration of the ban having regard to all prevailing circumstances, such as the gravity of the infringement, the object and value of the procurement, the impact of the infringement on the final decision of the award procedure, and whether the offender is willing to cooperate or is a repeat offender of the provisions of this Act. If the infringement is manifestly voluntary and deliberate it shall also be taken into consideration when determining the amount of the penalty or the duration of the ban. The decision on imposing the ban shall be made in due consideration of the provisions of specific other legislation. (6) The provisions on the amounts of such penalties shall be decreed by the Government. (7) If the Kzbeszerzsi Dntbizottsg annuls the contracting entitys final decision in the award procedure, the contracting entity shall be liable to adopt a new decision within thirty days of the operative date of the relevant resolution. If the procedure is envisaged to be successful, prior to making a decision the contracting entity shall obtain guarantees - within the prescribed time limit - from all tenderers involved for maintaining their tenders. If a tenderer fails to respond within the time limit specified, it shall be deemed that the tenderer refused to maintain its tender. (8) If the Kzbeszerzsi Dntbizottsg finds in its decision referred to in this Section any infringement of the regulations governing public procurements and contract award procedures, the contracting entity and the contracting tenderer may avoid - within thirty days following receipt of the decision of the Kzbeszerzsi Dntbizottsg - the contract concluded for the procurement in question, if the infringement did in fact have an impact on the final decision in the award procedure.

Delivery and Publication of the Decisions of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board)

Section 153 (1) The ruling for the suspension of proceedings, the ruling for refusing the petition without substantive examination, and a ruling adopted for the termination of the proceedings, as well as the decision on the merits and the resolution adopted in conclusion of a public procurement action shall be delivered to the clients and other concerned parties. Where a ruling for the suspension of proceedings, a ruling for refusing the petition without substantive examination, a ruling adopted for the termination of the proceedings, a decision on the merits or the resolution adopted in conclusion of the case pertains to a subsidized procurement, that decision or the resolution shall be delivered to the bodies providing financial support for the procurement in question as well. (2) The ruling for refusing the petition without examination as to substance, the ruling adopted for the termination of the proceedings, the decision on the merits, the resolution adopted in conclusion of a public procurement action, and rulings adopted for authorizing the conclusion of contracts [Subsection (4) of Section 144] shall be published on the website of the Kzbeszerzsi Hatsg (Procurement Authority) on the day when adopted. The decisions the Kzbeszerzsi Dntbizottsg has adopted on the merits in closed hearings in accordance with Sub section (3) of Section 148 shall also be published. However, in classified procurements and classified contract award procedures, defense procurements and defense contract award procedures the provisions of this Subsection and Subsections (3)(4) hereof shall not apply. (3) The Kzbeszerzsi Dntbizottsg shall publish its decisions on the website even if a motion was filed for judicial review (Section 157), however, this is to be indicated in the notice. (4) In connection with the judicial review of a ruling for refusing the petition without substantive examination, a ruling adopted for the termination of the proceedings or a decision on the merits, the courts decision (decisions) shall also be published on the website of the Kzbeszerzsi Hatsg, in addition to the particulars referred to in Subsection (9) of Section 137 or Subsection (5) of Section 144 of the petition invoking the proceedings of the Kzbeszerzsi Dntbizottsg and the resolution adopted on the merits of the case. (5) Where judicial review is invoked in connection with any resolution the Kzbeszerzsi Dntbizottsg has adopted on the merits of the case, the contracting entity affected may suspend the public procurement procedure in progress and postpone the time of contracting pending final court decision.

Review Procedures Regarding the Qualification of Tenderers

Section 154 (1) The provisions governing the proceedings of the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) shall also apply to review procedures of cases relating to the qualification system subject to the exceptions set out in Subsections (2)-(4) of this Section. (2) A petition may be filed by a candidate whose application for qualification has been rejected or who has been removed from the register of qualified candidates. The petition shall be filed within fifteen days following receipt of the contracting entitys decision to that effect. (3) The petition shall contain the following information: a) name and (registered or home) address of the petitioner (and his representative); b) name and address of the contracting entity operating the qualification system to which the petition pertains; c) the date of receipt of the contracting entitys written notice; d) reference to the statutory provision infringed upon; e) a motion requesting the decision of the Kzbeszerzsi Dntbizottsg and the reasons.

(4) The Kzbeszerzsi Dntbizottsg shall adopt a decision to declare the proceeding unlawful and shall annul or alter the decision of the contracting entity.

Uniform Ruling Process of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board)
Section 155 (1) With a view to fostering the administration of justice in review proceedings along uniform principles, the Kzbeszerzsi Dntbizottsg shall have a college of public procurement arbitrators. (2) The Kzbeszerzsi Dntbizottsg may set up a college to handle general or specific cases designated in its organizational and operational regulations. The college shall analyze the decisions of the Kzbeszerzsi Dntbizottsg so as to foster the uniform administration of justice in review proceedings, and shall render an opinion in cases of dispute. (3) Where a panel of arbitrators of the Kzbeszerzsi Dntbizotts g has adopted a decision regarding certain questions of principle, such decision must be presented to the chairman of the Kzbeszerzsi Dntbizottsg. The chairman of the Kzbeszerzsi Dntbizottsg shall bring the decision on the questions of principle before the college of all arbitrators. (4) If the college of all arbitrators finds that the decision or any part thereof covers a matter of principle, it shall draw up guidelines on the decision, or a part thereof, and publish it on its website. (5) Where a panel of arbitrators of the Kzbeszerzsi Dntbizottsg intends to deviate from the said guidelines in connection with any legal issue, the chairman of the Kzbeszerzsi Dntbizottsg must be informed thereof. The chairman of the Kzbeszerzsi Dntbizottsg shall present the proposed decision relating to the case on hand before the relevant college or the college of all arbitrators, and shall request the opinion of the competent college or the college of all arbitrators. The panel of arbitrators shall wait for the opinion of the relevant college or the college of all arbitrators before rendering a decision, however, such opinion is not binding, and the panel of arbitrators may adopt a decision in derogation from the guidelines. If there is agreement between the panel of arbitrators and the relevant college or the college of all arbitrators, the Kzbeszerzsi Dntbizottsg shall publish the new set of guidelines, or the amendment of the existing one, on the website of the Kzbeszerzsi Hatsg ( Procurement Authority). (6) The chairman of the Kzbeszerzsi Dntbizottsg shall routinely monitor the decisions rendered by the Kzbeszerzsi Dntbizottsg, and if ascertains that the principles based on which the panels of arbitrators have adopted their decisions are inconsistent, the chairman shall notify the college of all arbitrators thereof. In the interest of implementing uniform principles in the decision-making process, the college of all arbitrators shall render an opinion in the given legal issue. The opinion of the college of all arbitrators may be departed from only in accordance with the provisions set out in Subsection (5). (7) The rules relating to the specific colleges and the college of all arbitrators shall be laid down in the organizational and operational regulations of the Kzbeszerzsi Dntbizottsg.

Appeals Filed Against the Decisions of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board)
Section 156 (1) An interim ruling adopted by the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) may be appealed only if so permitted in this Act. A ruling for the suspension of the proceeding of the Kzbeszerzsi Dntbizottsg may also be appealed under this Section, as well as a ruling for rejecting the petitio n without substantive examination, and a ruling adopted for the termination of the proceedings.

(2) The appeal shall be presented to the Kzbeszerzsi Dntbizottsg within eight days following receipt of the ruling to which it pertains. The Kzbeszerzsi Dntbizottsg shall forward the appeal - along with all documents of the case - to the court without delay. (3) The competent court of public administration and labor shall review appeals against the rulings of the Kzbeszerzsi Dntbizottsg in priority non-contentious proceedings. The court shall have powers to reverse any ruling of the Kzbeszerzsi Dntbizottsg. The courts decision may not be appealed and may not be reviewed. (4) The regulations of Chapter XX of Act III of 1952 on the Code of Civil Procedure (hereinafter referred to as CPC) shall apply mutatis mutandis to these court proceedings, unless otherwise provided for by this Act or by the non-contentious nature of the proceedings. Section 157 Awards made by the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board ) may not be appealed and no petition for reopening the case may be lodged. Any person whose right or lawful interest is injured by an award of the Kzbeszerzsi Dntbizottsg, and any entity or person requesting the Kzbeszerzsi Dntbizottsg to take action under Section 140 may file for court action requesting a judicial review of the award in question. Judicial review may be requested for reasons other than an infringement by the Kzbeszerzsi Dntbizottsg, but also if the plaintiff alleges that the Kzbeszerzsi Dntbizottsg failed to properly assess and evaluate the proceedings and decisions requested in accordance with the provisions of this Act. Section 158 (1) The motion for review may be submitted exclusively to the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) within fifteen days of receipt of the decision. (2) The Kzbeszerzsi Dntbizottsg shall forward the motion for review - along with all documents of the case and the statement related to the contents of the motion - to the court within five days of receipt, and shall inform the court of the clients and other interested persons being parties to the proceedings before the Kzbeszerzsi Dntbizottsg, affected by the resolution. (3) Any person who has been disqualified as a public procurement arbitrator by virtue of the reasons defined in Section 136 shall be excluded from hearing the case and shall be excluded as a judge. Section 159 (1) The court shall consider the motion for review within eight days and shall - furthermore - deliver the motion for review, if filed in compliance with the law, by service of process to the plaintiff together with the declaration of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board). (2) If the motion contains a request for suspension of the enforcement of the resolution to which it pertains, the court shall adopt a decision thereof within five days of receipt of the relevant documents and shall deliver this decision to the parties without delay. (3) The court shall inform the adverse party and the parties of the public procurement action to whom the decision of the Kzbeszerzsi Dntbizottsg pertains within the time limit referred to in Subsection (1) of the possibility of intervention, where the parties shall notify their intention to exercise intervention to the court within eight days of receipt of notice. No application for continuation shall be accepted upon failure to meet the above-specified deadline. (4) During the proceedings, in connection with remediable deficiencies maximum eight days may be allowed to rectify such shortcomings, where this time limit may be extended on one occasion in justified cases, by an additional eight days. Section 160

(1) The court shall deliver its judgment without a formal hearing, however, it shall hold a hearing if so requested by either party. Hearing may be requested by the plaintiff in his claim, or by the defendant in his reply to such claim. No application for continuation will be accepted upon failure to do so. An intervenor may request a hearing in accordance with Subsection (3) of Section 338 of the CPC. Where judgment is delivered without a hearing the provisions of Subsections (5), (7) and (8) of Section 338 of the CPC shall apply. (2) Section 332/B of the CPC shall apply by way of derogation that the first hearing must be held within thirty days upon delivery of the relevant documents to the court, and if no evidentiary procedure is required, or in the case of out-of-court proceedings, a judgment shall be delivered within this time limit. These time limits shall not cover any length of time allowed for remedying deficiencies. (3) The court may alter the resolutions of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) - including the amount of any financial penalty - and may apply the sanctions described in Paragraph f) of Subsection (2) and Subsections (3) and (4) of Section 152. (4) The court shall overturn a resolution adopted by the Kzbeszerzsi Dntbizottsg only in the case of infringement of any material provisions of the review procedure on the part of the Kzbeszerzsi Dntbizottsg with any impact as to the merits of the case. (5) The courts decision may not be appealed, except if the court has decided to overturn the resolution of the Kzbeszerzsi Dntbizottsg. (6) The courts decision shall be delivered to the parties by service of process within eight days following the time when it was adopted. (7) If the court proceeds according to Paragraph f) of Subsection (2) and Paragraph d) of Subsection (3) of Section 152, its decision shall be sent to the Kzbeszerzsi Hatsg.

Joint Action for the Review of a Resolution of the Kzbeszerzsi Dntbizottsg and for the Ineffectiveness of a Contract Due to Any Infringement of Regulations Governing Public Contracts
Section 161 (1) Review of a resolution of the Kzbeszerzsi Dntbizottsg, and to have the underlying contract dec lared ineffective - on the grounds referred to in Subsection (1) of Section 127 -, and the application of the legal consequences relating to ineffectiveness may be requested in a single court proceeding only. The action shall be brought against the Kzbeszerzsi Dntbizottsg and against the parties to the contract, the motion for review must be submitted to the Kzbeszerzsi Dntbizottsg within fifteen days of receipt of the decision. (2) In these actions other civil claims may not be enforced, and ineffectiveness of the contract on grounds other than what is contained in Subsection (1) of Section 127 may not be argued. (3) In these actions Chapter XX of the CPC shall apply subject to the exceptions set out in this Act. (4) The Kzbeszerzsi Dntbizottsg shall forward the motion for review - along with all documents of the case, the information referred to in Subsection (2) of Section 158 and the statement related to the contents of the motion to the court within five days of receipt. Section 162 (1) Any person who has been disqualified as a public procurement arbitrator by virtue of the reasons defined in Section 136 shall be excluded from hearing the case and shall be excluded as a judge. (2) The motion may be altered, or extended, within the time limit prescribed for legal action. The provisions of Subsection (2) of Section 335/A of the CPC shall apply in this case as well.

(3) Where a hearing is requested by either of the parties, the court shall declare any statements and arguments presented after the hearing without the express request of the court inadmissible in rendering its decision. Section 163 (1) The court may alter the resolutions of the Kzbeszerzsi Dntbizottsg - including the amount of any financial penalty - and may apply the sanctions described in Paragraph f) of Subsection (2) and Subsections (3) and (4) of Section 152. If the courts decision is for abolishing the contested resolution of the Kzbeszerzsi Dntbizottsg, it shall dismiss the case as pertaining to ineffe ctiveness. The court shall overturn a resolution adopted by the Kzbeszerzsi Dntbizottsg only in the case of infringement of any material provisions of the review procedure on the part of the Kzbeszerzsi Dntbizottsg with any impact as to the merit s of the case. (2) If the court declares a contract concluded following an award procedure partially ineffective, or if refuses to apply ineffectiveness specifically on the basis of Subsection (2) of Section 127, a financial penalty must be imposed taking into account all relevant circumstances - in the amount up to fifteen per cent of the value of the contract. If in the process of setting the legal consequences relating to ineffectiveness the court declares a contract effective for the period up to the adoption of a decision, a penalty must be imposed - taking into account all relevant circumstances in the amount up to ten per cent of the value of the contract. (3) The courts decision may not be appealed, except for any decision adopted pertaining to ineffectiveness of the contract, or if the court has decided to overturn the resolution of the Kzbeszerzsi Dntbizottsg. (4) The court shall, furthermore, impose a financial penalty according to Subsection (2) if it declares a contract concluded following a classified or defense contract award procedure, or upon the omission thereof, partially ineffective, or if refuses to apply ineffectiveness if the consequences thereof would seriously endanger the very existence of a wider defense or security program which is essential for the States security interests.

Civil Action for the Ineffectiveness of a Contract Due to Any Infringement of Regulations Governing Public Contracts
Section 164 (1) If the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) considers in its resolution adopted on the merits of the case the infringement referred to in Subsection (1) of Section 127, it shall file for legal action to have the contract declared ineffective and for the application of the legal consequences relating to ineffectiveness. At the same time the Kzbeszerzsi Dntbizottsg shall request the court to order the suspension of further performance of the contract, as an interim measure. In such actions the Kzbeszerzsi Dntbizottsg shall be exempt from all related court costs. (2) The Kzbeszerzsi Dntbizottsg shall file for legal action under Subsection (1) within thirty days upon passing the resolution on the merits of the case. An application for continuation may be submitted according to the CPC upon failure to meet this deadline. (3) With the exception of classified procurements and classified contract award procedures, defense procurements and defense contract award procedures, the Kzbeszerzsi Dntbizottsg shall publish a notice on the we bsite of the Kzbeszerzsi Hatsg (Procurement Authority) of the legal action filed according to Subsection (1). The notice shall contain the description of the case (indicating the related public procurement procedure, where applicable), reference to the resolution adopted on the merits of the case, the time of filing for legal action, and the names of the parties involved. (4) If - in an action under Subsection (1) - the court declares a contract concluded following an award procedure ineffective on the grounds specified in Paragraphs a)-c) of Subsection (1) of Section 127, the contract shall be considered ineffective from the date it was concluded, and the status having existed prior to the conclusion of the contract shall be restored.

(5) If the court declares a contract concluded following an award procedure partially ineffective, or if refuses to apply ineffectiveness specifically on the basis of Subsection (2) of Section 127, a penalty must be imposed - taking into account all relevant circumstances - in the amount up to fifteen per cent of the value of the contract. If in the process of setting the legal consequences relating to ineffectiveness the court declares a contract effective for the period up to the adoption of a decision, a penalty must be imposed - taking into account all relevant circumstances in the amount up to ten per cent of the value of the contract. (6) The actions brought under Subsection (1) hereof shall fall within the exclusive jurisdiction of the court of public administration and labor that has also heard the administrative action opened under Section 157 relating to the same case of infringement of regulations governing public contracts. If the decision of the Kzbeszerzsi Dntbizottsg establishing the infringement under Paragraphs a)-c) of Subsection (1) of Section 127 was submitted for judicial review, the civil action brought by the Kzbes zerzsi Dntbizottsg in the same case - if the administrative action is opened at a later time - shall be transferred to the court hearing the administrative action under Section 157. The administrative action and the civil action brought by the Kzbesze rzsi Dntbizottsg shall be consolidated. The Kzbeszerzsi Dntbizottsg shall forthwith notify the court hearing the civil action if having received a petition for the judicial review of its resolution establishing the infringement under Paragraphs a)-c) of Subsection (1) of Section 127. (7) In the consolidated action referred to in Subsection (6) the provisions of Chapter XX of the CPC shall apply subject to the exceptions set out in Subsection (2) of Section 161, Subsections (1)-(3) of Section 162 and Section 163. The court shall, furthermore, impose a financial penalty according to Subsection (5) if it declares a contract concluded following a classified or defense contract award procedure, or upon the omission thereof, partially ineffective, or if refuses to apply ineffectiveness if the consequences thereof would seriously endanger the very existence of a wider defense or security program which is essential for the States security interests.

Other Civil Actions Related to Public Contracts

Section 165 (1) Subject to the exceptions set out in Subsection (1) of Section 161 and Subsection (1) of Section 164, civil actions may be launched in connection with any infringement involving public procurements and contract award procedures only if the infringement is established by final ruling of t he Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board), or by the court following the review of a decision of the Kzbeszerzsi Dntbizottsg. (2) If a tenderers claim for damages is limited to recover from the contracting entity his expe nses incurred in connection with the preparation of his tender and with participation in the award procedure, it shall suffice to provide proof to the extent: a) that the contracting entity has breached any provision of the regulations on public procurements and contract award procedures; and b) that he was in real contention for the contract; and c) that the infringement had a direct impact on his chances for winning the contract.

Actions Taken by the European Commission

Section 166 (1) The European Commission may invoke the procedures referred to in Subsection (2) when it considers that a clear and manifest infringement of Community provisions in the field of procurement has been committed during a contract award procedure falling within the scope of Part Two.

(2) The European Commission shall notify the contracting entity concerned of the reasons which have led it to conclude that an infringement has been committed and request its correction by appropriate means before the conclusion of the contract. (3) The contracting entity shall send information on the alleged infringement to the Kzbeszerzsi Hatsg (Procurement Authority) in due time to permit the Kzbeszerzsi Hatsg to forward it to the European Commission within twenty-one days from the date of receipt of the request, or within thirty days if it relates to a public service contract. (4) The contracting entity shall, in particular, communicate: a) that the infringement has been remedied; or b) that the infringement has not been remedied; or c) a notice to the effect that the contract award procedure has been suspended, or that the Kzbeszerzsi Dntbizottsg has adopted the interim measures in the review procedure to suspend the contract award procedure. (5) In connection with Paragraph b) of Subsection (4) a reasoned submission as to why no correction has been made shall be provided. If the alleged infringement is already the subject of review the Kzbeszerzsi Hatsg shall forthwith notify the European Commission of its decision adopted in the review procedure. (6) In connection with Paragraph c) of Subsection (4) the Kzbeszerzsi Hatsg shall forthwith notify the European Commission of the result of the award procedure and of the review procedure, and as to whether or not the alleged infringement has been corrected.

PART SIX The Kzbeszerzsi Hatsg (Procurement Authority)

Section 167 (1) The Kzbeszerzsi Hatsg (hereinafter referred to as Authority) is created for the purpose of enforcement of the objectives set out in this Act, and reports only to Parliament. (2) The Authority is a central budgetary agency under the supervision of the Parliament. It is operated and managed independently and has overall jurisdiction concerning its scope of duties and responsibilities defined in this Act. The Authority is seated in Budapest. (3) The budget of the Authority shall be allocated as a separate chapter in the annual central budget. No funds shall be reallocated from the Authoritys chapter during a given fiscal year without the approval of Pa rliament.

Members and Officers of the Council Operating Under the Authority

Section 168 (1) The Kzbeszerzsi Hatsg shall operate a council (hereinafter referred to as Council). The Council shall consist of ten members. The Council shall have an equal number of members delegated on behalf of public interest objectives, contracting entities and tenderers. (2) Responsibility for the enforcement of the basic principles of this Act and public interest objectives in the Council lies with the persons delegated by the following organizations or persons: a) the president of the Gazdasgi Versenyhivatal (Hungarian Competition Authority); b) the minister vested with powers to oversee state property;

c) the minister in charge of economic policies. (3) The common interests of contracting entities of public procurement procedures shall be represented in the Council by the persons delegated by the following bodies or persons: a) one person delegated by the Nemzeti Fejlesztsi gynksg ( National Development Agency); b) one person delegated jointly by the national associations of municipal governments; c) one person delegated by the minister in charge of building and construction. (4) The common interests of tenderers in public procurement procedures shall be represented in the Council by three persons delegated by the national interest representation bodies of employers and the chambers of commerce. (5) The chairman of the Council shall have a seat in the Council even if not elected from among the members. The chairman of the Council, if elected from among the members, shall no longer represent the common objectives or interests of the party (parties) by which he was originally delegated, while such party (parties) shall be entitled to delegate a new member to the Council. The delegating party (parties) shall not be entitled to exercise the right provided in Paragraph b) of Subsection (6) and Subsection (7) of Section 170. (6) Each member of the Council shall report once a year to the delegating party (parties) regarding his activities performed for his vested objectives, for the common interests on the agenda, and for the implementation of the objectives of this Act, and regarding the related achievements in public procurement procedures. (7) The chairman, deputy chairman and members of the Council shall submit a declaration of personal wealth in accordance with the provisions on Members of Parliament, for the first time within thirty days of the time of their appointment. The provisions governing the registration, control and administration of the declarations of personal wealth of Members of Parliament shall apply to the registration, control and administration of the aforesaid declarations of personal wealth as well. Section 169 (1) The following may not be appointed to the Council: a) Members of Parliament; b) any person who has a criminal record. (2) Council members shall be appointed for a minimum term of two years. (3) The chairman of the Authority shall also function as the chairman of the Council. The deputy chairman of the Authority shall also function as the deputy chairman of the Council. The chairman and deputy chairman of the Authority and members of the Council shall be dismissed on the grounds of conflict of interest if they deliberately decline to file a compulsory declaration of personal wealth, or fail to file one in due time, or have knowingly disclosed false data or information in the declaration. (4) The rules for the appointment and removal of members, with the exception of those applicable to the cases described in Subsections (1)-(3), shall be determined by the appointing agencies so as to provide for the continuous operation of the Council. (5) Members shall perform their duties in person. Section 170 (1) The chairman of the Authority shall be appointed for a five-year term, elected by a two-thirds majority of the Council members present. The chairman may be re-elected once.

(2) The chairman of the Authority shall be subject to the provisions of Act on Public Service Officials subject to the exceptions set out in this Act. (3) The chairman of the Authority shall be entitled to receive the remuneration, and other benefits, prescribed for state secretaries for public administration. (4) The Council shall exercise employers rights in respect of the chairman of the Authority. The chairman shall be required to file a statement with the Council concerning any conflict of interest. (5) The Council shall elect a deputy chairman for the Authority for a term of five years by a two-thirds majority from among the members present. (6) The mandate of the chairman and deputy chairman of the Authority and of members of the Council shall terminate: a) at the end of the elected term; b) upon removal; c) upon resignation; d) upon the occurrence of the circumstances set out in Subsection (1) of Section 169; e) if deemed unworthy of public office, or have become permanently incapacitated; f) upon death; g) upon any conflict of interest. (7) The Council shall adopt a decision for removal in connection with Paragraphs e) and g) of Subsection (6) by two-thirds majority vote of the members attending, upon hearing the opinion of the organizations or persons which appointed the person in question. (8) If the Council fails to adopt a decision before the term of the chairman expires as to the appointment of a new chairman for the Authority, the term of the reigning chairman shall be extended by the end of the given calendar year. Section 171 (1) The chairman of the Authority shall: a) represent the Authority and the Council functioning within the Authority; b) attend the sessions of Parliament and its committees when invited, and shall present the Authoritys annual report; c) issue a memorandum concerning practical information on procurements and award procedures; d) summarily call a special voting session, between regular sessions, as per the rules laid down in the Authoritys organizational and operational regulations to resolve matters requiring urgent attention; e) exercise employers rights in respect of the first secretary of the Authority (hereinafter referred to as first secretary), employees of the Secretariat of the Authority, the chairman and deputy chairman of the Kzbeszerzsi Dntbizottsg (Public Procurement Arbitration Board) and public procurement arbitrators. (2) The deputy chairman shall be vested with full authority when substituting for the chairman of the Authority in his absence.

Powers and Responsibilities of the Authority

Section 172 (1) The Authority shall have powers to effectively participate in the development of public procurement policies representing public interest and the interests of contracting entities and tenderers, in formulating and presenting methods for legitimate public award procedures, hence to promote the transparency of public spending and to improve control of the appropriation of public funds. (2) The Council functioning within the Authority shall: a) monitor the enforcement of the provisions of this Act and initiate the drafting and amendment of legislation related to public procurement with the competent bodies; b) assess and evaluate draft legislation and comprehensive legislative concepts related to public procurement and to the Councils functions; c) determine the number of members of the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board); d) appoint and remove the chairman and deputy chairman of the Kzbeszerzsi Dntbizottsg, as well as public procurement arbitrators, and shall hear cases concerning the incompatibility of public procurement arbitrators; e) maintain, update and publish on its website: ea) the register of contracting entities governed by this Act, eb) the official register of qualified tenderers, determine the qualification criteria and the approved ways of evidencing qualification, ec) the register of official consultants for public contracts, ed) the list of tenderers banned from participating in public procurement procedures, also indicating the length of exclusion; f) maintain records on public procurements; g) prepare a summary statistical report each year and shall send it to the European Commission by 31 October of the year following the year to which it pertains. h) provide for the editing of the Kzbeszerzsi rtest (Public Procurement Newsletter) the Official Journal of the Kzbeszerzsi Hatsg (hereinafter referred to as Kzbeszerzsi rtest), provide for the control and publication of notices for contract award procedures and design contests, and publish other data and information on its website or in the Kzbeszerzsi rtest as specified in this Act; i) publish on its website - on the day of receipt - the particulars of petitions for invoking the proceedings of the Kzbeszerzsi Dntbizottsg - including the document filed for the opening of a review procedure by the chairman of the Kzbeszerzsi Dntbizottsg -, the judgments of the Kzbeszerzsi Dntbizottsg and its decision adopted in conclusion of a public procurement procedure, and in connection with the judicial review of a judgment, the courts decision (decisions); j) set up and operate, and publish on its website the public database of resolutions adopted in review proceedings with facilities to make available the decisions of the arbitration board and court rulings to the general public for retrieval, electronically, free of charge, complete with key word functions; k) draw up - following consultation with the minister vested with powers to oversee state property - guidelines for the application of legislation on public contracts relying on the conclusions of decisions adopted in review cases, and

concerning practical information on procurements and award procedures; and shall publish this guideline on its website and in the Kzbeszerzsi rtest; l) monitor the amendments and fulfillment of public contracts concluded following the award procedure; m) promote the advertising and publicity of public procurement information, the dissemination of electronic public procurement databases, and support electronic means of administration and communication facilities; n) partake - together with the minister vested with powers to oversee state property - in drawing up the conditions for the education of persons participating in public procurement procedures, and also in the arrangement, control and supervision of training relating to public contracts; o) maintain contact with public procurement organizations of other states and shall provide the information referred to in Article 45(4) of Directive 2004/18/EC; p) continuously update, maintain and publish on its official website the wage costs, and the related public dues, deemed customary in or established for the given sectors; q) adopt its own organizational and operational regulations and other internal regulations related to its operation, such as the procedural order for the implementation of review procedures in connection with tender notices, and furthermore, related to its budget proposal and annual budget report; r) perform the duties prescribed by law. (3) The Council shall file a report each year to Parliament on its activities relating to observations concerning the fairness and transparency of public award practices, and on the conclusions of review proceedings. The report shall contain information as to the number and value of public procurements, in respect of resident tenderers, in particular the status of micro, small and medium-sized enterprises. The report shall also be sent to the llami Szmvevszk (State Audit Office) for information purposes. (4) In the interest of maintaining the official register of qualified tenderers, the Authority shall be authorized to process the personal identification data of natural persons the applicant has indicated, including information relating to training, education and professional experience. (5) In the interest of maintaining the register of official consultants for public contracts, the Authority shall be authorized to process the personal identification data of official consultants for public contracts, including their contact address, education, information relating to legal capacity and criminal record, on the employer and the consultants experience in public award procedures, and an indication of the consultants entitlement to pursue the activities specified in Subsections (1) and (2) of Section 5 of Act XI of 1998 on Attorneys. (6) The Authority shall be able to process the data referred to in Subsection (5) for a period of one year from the time the official consultant for public contracts is removed from the register. Any official consultant for public contracts who fails to meet the requirements set out in specific other legislation for registration shall be removed from the register, or upon the occurrence of any of the grounds for exclusion specified in Subsection (7) or if the official consultant for public contracts was found guilty of an infringement committed in an official capacity, if the validity of registration has expired and an application for renewal had not submitted or it was refused by the authority, also if so requested by the official consultant for public contracts and upon the death of the person shown in register. (7) The following may not function as an official consultant for public contracts: a) any person who is deemed incompetent or of limited capacity; b) any person under the force of detrimental consequences attached to prior convictions; c) public procurement arbitrators; d) chairman and deputy chairman of the Kzbeszerzsi Hatsg.

(8) The application for registration shall have enclosed documents, or their certified copies, to verify the nonexistence of the grounds for exclusion specified in Subsection (7). Admission to the register, renewal of entries and updating the data registered therein shall be subject to an administrative service fee payable to the Authority in an amount established in specific other legislation. (9) Following consultation with the minister in charge of foreign policies, the Authority shall publish guidelines concerning the international agreements relating to public contracts, covering also the states with which Hungary has an agreement on double taxation. (10) The Authoritys resolutions and rulings adopted within its vested competence may not be appealed. As regards the proceedings under Subparagraph eb) of Subsection (2), however, the applicant or the qualified tenderer concerned, and in the case of the proceedings under Subparagraph ec) of Subsection (2), the applicant or the official consultant for public contract affected may bring the case to court within fifteen days of receipt of the decision requesting review of the resolution. The court of public administration and labor shall decide such requests in noncontentious proceedings within sixty days of receipt, and may alter the Authoritys resolution. The courts ruling shall be final; it may not be appealed and may not be subject to judicial review. The regulations of Chapter XX of the CPC shall apply to these court proceedings, unless otherwise provided for by this Act or by the non-contentious nature of the proceedings. (11) Publication of the resolutions of the Kzbeszerzsi Dntbizottsg, and the decisions rendered upon the judicial review of public procurement procedures shall be governed by the provisions of Chapter XII of Act CLXI of 2011 on the Structure and Administration of Courts (hereinafter referred to as Courts Act) subject to the exception that: a) the responsibility for publishing the court decisions rendered in public procurement procedures and resolutions adopted by the Kzbeszerzsi Dntbizottsg lies - by way of derogation from Subsection (1) of Section 163 of the Courts Act - with the Kzbeszerzsi Hatsg; b) the responsibility for making digital copies rendered anonymous under Subsection (3) of Section 163 of the Courts Act lies with the Kzbeszerzsi Dntbizottsg with respect to the resolutions of the Kzbeszerzsi Dntbizottsg; c) the application referred to in Subsection (4) of Section 166 of the Courts Act may be submitted to the chairman of the Kzbeszerzsi Hatsg; d) Subsections (2) and (5) of Section 163 of the Courts Act shall not apply; e) Subsection (3) of Section 163 and Subsection (1) of Section 164 of the Courts Act shall apply under the condition that the president of the court having adopted the decision shall communicate the decision to the president of the Orszgos Brsgi Hivatal (Judiciary Office of Hungary) for reasons of publication in the bibliography, and it shall be made available to the chairman of the Kzbeszerzsi Hatsg, together with the related resolutions referred to in Subsection (3) of Section 163 of the Courts Act.

The Council
Section 173 (1) The Council shall convene at least six times a year, or as frequently as deemed necessary. (2) The Council shall have a quorum upon having two-thirds of its members present. (3) The Council shall adopt its resolutions by simple majority, subject to the exceptions set out in this Act. (4) Any member of the Council who is a relative of a person who is involved in a case shall not take part in the preparation and passing of a Council decision on the matter referred to in Paragraph d) of Subsection (2) of Section 172.

(5) Any member or other personnel of the Council who has personal or financial ties to the parties involved in Council proceedings related to official consultants for public contracts and/or to qualified tenderers shall not take part in that proceeding, or in the preparation of such proceeding. (6) Any member of the Council shall report to the chairman if he is or has become subject to a conflict of interest pursuant to Subsections (4)-(5), and shall forthwith terminate his involvement in any pending procedure. Section 174 (1) The Authority may not engage in any business operations, may not accept any pecuniary contribution from any organization or person, and may not grant any pecuniary contribution to any organization or person. (2) All proceeds from administration service fees shall represent revenue to the Authority. The Authority shall allocate part of the proceeds from the examination of contract notices to cover the costs of the information technology infrastructure required to discharge its functions conferred in this Act. (3) The Authority shall use its revenues from the administrative service fees under Subsection (2) for covering the expenses arising in connection with discharging the duties conferred upon it by law. (4) In order to be able to monitor payments received and outstanding, the Authority shall keep separate records on administrative service fees, and on penalties and fines. The Authority shall be required to declare its revenues from penalties received during the current year, less any repayments made during the year, effective as on 31 December in due consideration of Subsection (1) of Section 339 and Paragraph q) of Subsection (2) of Section 339 of the CPC and the relevant provisions of this Act. As regards the records, handling and accounting of the fees, penalties and fines the provisions of the legislation governing the reporting and bookkeeping obligation of agencies funded by the central budget shall be observed. (5) For the purposes of the administrative service fees referred to in Subsection (2) the following provisions of Act XCIII of 1990 on Duties (hereinafter referred to as Duties Act) shall apply: a) Subsection (4) of Section 3 and Subsections (2)-(3) of Section 28 as pertaining to payment obligations; b) the first sentence of Subsection (1) of Section 31 and Subsections (2), (4), (5) and (7) of Section 31 as pertaining to determining the persons liable to payment obligations; c) Section 86 as pertaining to terms of limitation. Any reference made to duties in the Duties Act shall be interpreted as fees.

Organizational Structure of the Authority

Section 175 (1) The Secretariat of the Authority shall coordinate the activities of the Council and shall attend to the preparation and implementation of Council decisions, as well as the data collection, registration and administration activities required therefore. The first secretary shall act as the head of the Secretariat. (2) The first secretary and the employees of the Secretariat shall be in a public service legal relationship with the Authority, subject to the provisions of the Act on Public Service Officials. The first secretary shall be entitled to receive the remuneration and other benefits prescribed for deputy state secretaries. (3) Section 176

(1) Within the framework of the Authority, the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board) (hereinafter referred to as Arbitration Board) shall o perate in addition to the Council for the purpose of reviewing cases in connection with unlawful or disputed cases relating to public procurements and design contests. (2) Funding for the Arbitration Board shall be allocated from the Authoritys budget. (3) The Arbitration Board consists of a chairman and public procurement arbitrators in the amount determined by the Council, who are in a public service legal relationship with the Authority, and are appointed and removed by the Council. (4) The chairman and deputy chairman of the Arbitration Board are elected by the Council for a five-year term by two-thirds majority of the members present. The deputy chairman shall be elected by the Council from among the public procurement arbitrators on recommendation by the chairman of the Arbitration Board. The chairman and deputy chairman of the Arbitration Board may be re-elected. (5) The chairman candidate for the Arbitration Board shall have at least ten years of experience in public procurements and not less than three years of judicial practice, or at least ten years of experience in public procurements and not less than three years of service as a public procurement arbitrator, and a law degree as well. (6) The chairman of the Arbitration Board shall be subject to the provisions of the Act on Public Service Officials (hereinafter referred to as Public Officials Act) with due regard to the exceptions set out in this Act pertaining to the public service relationship of public procurement arbitrators. (7) The chairman of the Arbitration Board shall be entitled to receive the remuneration and other benefits prescribed for deputy state secretaries. The deputy chairman shall be entitled to the salary of senior department heads. (8) The Arbitration Board shall set up a college to handle the general or specific cases designated in its organizational and operational regulations. The college shall analyze the decisions of the Arbitration Board so as to foster the uniform administration of justice in review proceedings, and shall render an opinion in cases of dispute. Section 177 (1) The chairman of the Arbitration Board shall: a) direct the Arbitration Boards work; b) represent the Arbitration Board; c) draw up the Arbitration Boards organizational and operational regulation s and shall submit it to the Council for approval; d) monitor compliance with administrative time limits; e) upon submission of the petition invoking the Arbitration Boards proceedings, take measures without delay to have the description and subject matter of the proceeding published, including the names of the parties and the date of receipt of the petition, as well as the judgment of the Arbitration Board and its decision adopted in conclusion of a public procurement procedure, and in connection with the judicial review of a judgment, the courts decision (decisions); f) provide for making available the opinion of the college referred to in Subsection (8) of Section 176 to public procurement arbitrators. (2) The deputy chairman of the Arbitration Board shall be vested with full authority when substituting for the chairman in his absence. Section 178

(1) The chairman and deputy chairman of the Authority and members of the Council, the first secretary and the employees of the Secretariat and the public procurement arbitrators, and the persons who carried out such activities or held such offices shall handle all classified information and business secrets obtained in connection with performing their duties as strictly confidential information. (2) Upon the request of the chairman of the Authority or a public procurement arbitrator, all agencies shall provide information within fifteen days regarding matters related to public procurement.

Public Service Relationship of Public Procurement Arbitrators

Section 179 (1) The provisions of the Public Officials Act shall apply to the civil service relationship of public procurement arbitrators, subject to the exceptions set out in this Act. (2) Public procurement arbitrators must have a higher education diploma and at least three years of professional experience, and shall have a degree in public administration and/or a law degree. (3) The time limits specified in the Public Officials Act shall apply to the educational requirements described in Subsection (2) above. (4) Public procurement arbitrators may not engage in any gainful activities, with the exception of scientific, educational, artistic, lecturing and editorial activities and intellectual activities subject to copyright protection, and may not be a salaried member or an executive officer or supervisory board member of a business association requiring personal involvement. (5) The following may not be appointed as public procurement arbitrators: a) Members of Parliament, representatives of municipal governments, mayors, or officers of chambers; b) any person with an ownership share in excess of twenty-five per cent of the capital, or twenty-five million forints in a business association. (6) Public procurement arbitrators shall be ranked in accordance with the rules of promotion set out in the Public Officials Act; however, they shall be entitled to receive the remuneration of public officers ranked two grades higher. (7) Public procurement arbitrators of chief counselors and senior chief counselors classification are entitled to the salary of department heads and senior department heads, respectively. (8) The legal relationship of public procurement arbitrators may be terminated by dismissal above and beyond the provisions of the Public Officials Act, even if the Council has reduced the number of members of the Arbitration Board. (9) A public procurement arbitrator whose term has been completed shall be reclassified in accordance with the provisions of the Public Officials Act. (10) Public procurement arbitrators may not be instructed in respect of any public procurement related review proceeding or decision.

PART SEVEN Closing Provisions Entry into Force

Section 180

(1) This Act - subject to the exceptions set out in Subsection (2) - shall enter into force on 21 August 2011. (2) Sections 1-179, Subsection (3)-(6) of Section 180, Subsection (1) of Section 181 and Sections 182-183 of, and Schedules 1-4 to this Act shall enter into force on 1 January 2012. It shall apply to procurements and public contracts concluded following an award procedure, to design contests and to review procedures and pre-contractual remedies requested in connection with these or initiated ex officio commencing after the date of entry into force. Concerning the fulfillment of contracts no notice is required to be published, even in the case of contracts awarded upon public procurement procedures opened before 1 January 2012. (3) (4) In accordance with Part Six of this Act, the name of the Kzbeszerzsek Tancsa ( Public Procurement Council), as a budgetary authority, shall be changed to Kzbeszerzsi Hatsg ( Procurement Authority) effective as of 1 January 2012, during which time the budgetary authority shall remain to function continuously. (5) (6) (7)

Transitional Provisions
Section 181 (1) Act CXXIX of 2003 on Public Procurement shall be repealed on 1 January 2012, however, it shall remain to apply to procurements and public contracts concluded following an award procedure, to design contests and to review procedures and pre-contractual remedies requested in connection with these or initiated ex officio commencing before 1 January 2012. (2) In classified procurement procedures the contracting entity shall be given access to personal data relating to criminal offenses for the purpose of investigating grounds for exclusion. (3) The following provisions of this Act, as established by Act CCXVII of 2012 on Participating in the Scheme for Greenhouse Gas Emission Allowance Trading Within the Community and in the Implementation of the Decision on Effort Sharing (hereinafter referred to as GGA), specifically: a) Paragraph e) of Subsection (1) of Section 6 as established by Subsection (1) of Section 129 of the GGA, b) Subsection (5) of Section 114 as established by Subsection (2) of Section 129 of the GGA, shall apply to procurement procedures opened after the date of the GGA entering into force. (4) Point 23 of Section 4, Subsection (1) of Section 29, Subsections (3) and (4) of Section 40, and Paragraph a) of Subsection (3) and Subsection (10) of Section 125 of this Act, as established by Act CCVIII of 2012 on the Amendment of Regulations in Support of and Underlying the Act on the Central Budget, and for other Purposes, shall apply to procurement procedures opened after 1 January 2013. Any reference made to sheltered employer in legislation adopted pursuant to this Act shall be understood as sheltered employment. (4) Paragraph l) of Section 129 of this Act, as established by Subsection (3) of Section 129 of the GGA, shall apply to procurement procedures opened after 1 January 2013.

Authorizations
Section 182 (1) The Government is hereby authorized to decree:

1. the means of proof required in public procurement procedures concerning suitability and grounds for exclusion, the types of documents that may be requested to that effect, and the detailed regulations for the verification of suitability and grounds for exclusion by the contracting entity, and the definition and contents of technical specifications; 2. the provisions relating to qualified tenderers, the conditions and means of verification for admission to the register of qualified tenderers, the rules for maintaining the register, the requirements relating to grounds for exclusion and suitability attested by the certificate of registry, and the requirements attested by certificates of the like issued by the competent bodies of other Member States of the European Union; 3. the detailed regulations concerning the sanctions to be imposed by the Kzbeszerzsi Dntbizottsg ( Public Procurement Arbitration Board), and the amount of financial penalty that may be imposed by and the amount and the mode of payment of the administrative service fee to be charged for proceedings of the Kzbeszerzsi Dntbizottsg, including the modes of payment and rules for covering such fee; 4. the regulations governing design contests; 5. the special regulations relating to public contracts under Chapter XIV, and the rules relating to the procedure under Subsection (8) of Section 118; 6. as regards the budgetary authorities, public foundations it controls or oversees and also State-owned economic operators, the detailed rules of centralized procurements, and the amount of charges payable to central purchasing entities authorized to conduct centralized procurement procedures intended to cover the costs of implementation only; 7. the detailed rules for the centralized procurements of communities governed by a common office; 8. the detailed rules of centralized procurements which are financed by the Egszsgbiztostsi Alap ( Health Insurance Fund) relating to health-care services, and the amount of charges payable to central purchasing entities authorized to conduct centralized procurement procedures intended to cover the costs of implementation only; 9. the detailed rules for procedural actions that may be performed by way of electronic means, including electronic auctions, and the detailed rules of procurements accomplished by electronic means; 10. the detailed provisions concerning public works contracts and for the performance of public works contracts, and the detailed rules covering the execution of public works contracts, and the terms and condition of payment of the price contracted, in derogation from this Act; 11. the special regulations for the procurement of pharmaceuticals and medical devices, reflecting the necessary derogations from this Act due to the unique nature of these procedures; 12. the special regulations governing public contracts affecting classified information, or which are related to fundamental national security or defense concerns and requiring special security measures; 13. the special regulations governing public contracts in the field of national defense, to purchases of goods and services, and public works contracts made expressly for military and law enforcement purposes serving fundamental defense interests; 14. the detailed provisions for procurements implemented as part of the NATO Security Development Program and other jointly financed, NATO supported programs; 15. the regulations concerning the dynamic purchasing system; 16. the detailed regulations relating to public procurements reserved for sheltered employment and for bodies authorized to operate social employment programs, and the cases where social considerations must be enforced in public award procedures and the means to enforce them;

17. the special regulations relating to public contracts when purchasing road transport vehicles, establishing and taking into account energy and environmental impacts covering the vehicles lifetime, and the detailed regulations for the related obligation of notification; 18. the special regulations governing public contracts to be awarded by budgetary agencies under its control and supervision, or by economic operators in which all or a majority of the capital is publicly owned and whose assets are managed by the State, or by the Governments public foundations relating to the autho rization of the opening of tender procedures and to the central oversight of such award procedures, the special provisions concerning the verification of performance of the public procurement contracts of these bodies and the authorization of the amendment of such contracts, furthermore, the authorization for the conclusion and amendment of contracts by these bodies for procurements made by means other than public award procedures; 19. the mandatory procedural rules in accordance with Section 123 relating to public supply contracts and public service contracts below the EU thresholds to be considered binding upon the budgetary authorities, public foundations the Government supervises and controls and also upon State-owned economic operators; 20. the detailed rules that may be prescribed relating to sustainability, environmental and energy efficiency requirements covering all stages of public procurement procedures, and the cases where such sustainability, environmental and energy efficiency requirements must be enforced in public award procedures which are considered binding upon the budgetary authorities, public foundations the Government supervises and controls and also upon State-owned economic operators, and the means to enforce them. (2) The minister vested with powers to oversee state property is hereby authorized to decree: a) the detailed regulations governing the conveyance, dispatch and publication of tender notices and procurement programs, the system of control of tender notices, the amount and payment terms of fees, the rules relating to the annual statistical report of public procurements, and the rules for publication in the Kzbeszerzsi rtest ( Public Procurement Newsletter) or on the website of the Kzbeszerzsi Hatsg (Procurement Authority); b) the models for notices, valuation reports and annual statistical reports, and the content elements of notices; c) the provisions governing the activities of official consultants for public contract, the rules on the qualification requirements for official consultants for public contracts, such as the length of experience in procurements and the way of verifying it, and the rules concerning the register of official consultants for public contract, including maintenance and admission, and the amount of the administrative service fee charged for admission to the register, for the renewal of entries, and for updating the data registered therein; d) the rules on the qualification requirements for official consultants for public contracts, such as liability insurance coverage, in agreement with the minister in charge of public finances; e) the type of data to be disclosed in connection with the central control and authorization of public award procedures, and the detailed regulations concerning the registration and processing of data relating to purchasing strategies and procurement programs, their amendments, and to contracts concluded and/or amended in connection with procurements made by means other than public award procedures. (3) The councils of municipal governments are hereby authorized to decree the detailed rules of locally centralized procurements, the bodies of local authorities which are required to proceed according to the centralized local procurement procedures, and the amount of charges payable to central purchasing entities authorized to conduct centralized procurement procedures locally, intended to cover the costs of implementation only. (4) The minister of the interior is hereby authorized to decree, in agreement with the minister vested with powers to oversee state property, the specific provisions in derogation from this Act on the procurements below the EU threshold of supplies of goods and services by public employers for the purpose of public benefit employment.

Compliance with the Acquis

Section 183

This Act serves the purpose of conformity with the following legislation of the Communities: a) Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts; b) Council Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors; c) Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors; d) Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts; e) Commission Directive 2005/51/EC of 7 September 2005 amending Annex XX to Directive 2004/17/EC and Annex VIII to Directive 2004/18/EC of the European Parliament and the Council on public procurement; f) Commission Regulation (EC) No. 1422/2007 of 4 December 2007 amending Directives 2004/17/EC and 2004/18/EC of the European Parliament and of the Council in respect of their application thresholds for the procedures for the award of contracts; g) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts; h) Commission Regulation (EC) No. 213/2008 of 28 November 2007 amending Regulation (EC) No. 2195/2002 of the European Parliament and of the Council on the Common Procurement Vocabulary (CPV) and Directives 2004/17/EC and 2004/18/EC of the European Parliament and of the Council on public procurement procedures, as regards the revision of the CPV; i) Directive 2009/33/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of clean and energy-efficient road transport vehicles, together with the government decree adopted under authorization granted by Point 17 of Subsection (1) of Section 182 of this Act, for the implementation of this Act, and Act XXXIII of 2004 on Regular Public Transport Services Provided by Bus; j) Article 7(1)b) of Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 providing for minimum standards on sanctions and measures against employers of illegally staying third-country nationals; k) Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC, together with the government decree adopted under authorization granted by Points 12 and 13 of Subsection (1) of Section 182 of this Act, for the implementation of this Act.

Schedule No. 1 to Act CVIII of 2011 List of the activities referred to in Paragraph a) of Subsection (3) of Section 7
NACE SECTION F Group Class Division 45 CONSTRUCTION Subject Construction Notes This division includes: 45000000 CPV code

construction of new buildings and works, restoring and common repairs 45.1 45.11 Site preparation Demolition and wrecking This class includes: of buildings; earth moving - demolition of buildings and other structures - clearing of building sites - earth moving: excavation, landfill, leveling and grading of construction sites, trench digging, rock removal, blasting, etc. - site preparation for mining: = overburden removal and other development and preparation of mineral properties and sites This class also includes: - building site drainage - drainage of agricultural or forestry land Test drilling and boring This class includes: - test drilling, test boring and core sampling for construction, geophysical, geological or similar purposes This class excludes: - drilling of production oil or gas wells, see 11.20 - water well drilling, see 45.25 - shaft sinking, see 45.25 - oil and gas field exploration, geophysical, geological and seismic surveying, see 74.20 Building of complete constructions or parts thereof; civil engineering General construction of This class includes: buildings and civil - construction of all types of engineering works buildings - civil engineering works: = bridges - including those for elevated highways, - viaducts, tunnels and subways = long-distance pipelines, communication and power lines = urban pipelines, urban communication and power lines, - ancillary urban works - assembly and erection of prefabricated constructions on the site This class excludes: - service activities incidental to oil and gas extraction, see 11.20 - erection of complete 45100000 45110000

45.12

45120000

45.2

45200000

45.21

45210000 excluding: - 45213316 - 45220000 - 45231000 45232000

45.22

45.23

45.24

45.25

prefabricated constructions from self-manufactured parts not of concrete, see divisions 20, 26 and 28 - construction work, other than buildings, for stadiums, swimming pools, gymnasiums, tennis courts, golf courses and other sports installations, see 45.23 - building installation, see 45.3 building completion, see 45.4 - architectural and engineering activities, see 74.20 - project management for construction, see 74.20 Erection of roof covering This class includes: and frames - erection of roofs - roof covering - waterproofing Construction of This class includes: highways, roads, airfields - construction of highways, and sport facilities streets, roads, other vehicular and pedestrian ways - construction of railways - construction of airfield runways - construction work, other than buildings, for stadiums, swimming pools, gymnasiums, tennis courts, golf courses and other sports installations - painting of markings on road surfaces and car parks This class excludes: - preliminary earth moving, see 45.11 Construction of water This class includes construction projects of: - waterways, harbor and river works, pleasure ports (marinas), locks, etc. - dams and dykes - dredging - subsurface work Other construction work This class includes: involving special trades - construction activities specializing in one aspect common to different kinds of structures, requiring specialized skill or equipment: = construction of foundations, including pile driving = water well drilling and construction, shaft sinking shaft sinking = erection of non-self-

45261000

45212212 and DA03 45230000 excluding: - 45231000 - 45232000 - 45234115

45240000

45250000 45262000

manufactured steel elements = steel bending = bricklaying and stone setting = scaffolds and work platform erecting and dismantling, including renting of scaffolds and work platforms = erection of chimneys and industrial ovens This class excludes: - renting of scaffolds without erection and dismantling, see 71.32 45.3 45.31 Building installation Installation of electrical wiring and fittings This class includes: - installation in buildings or other construction projects of: = electrical wiring and fittings = telecommunications systems = electrical heating systems = residential antennas and aerials = fire alarms = burglar alarm systems = lifts and escalators = lightning conductors, etc. Insulation work activities This class includes: - installation in buildings or other construction projects of thermal, sound or vibration insulation This class excludes: - waterproofing, see 45.22 Plumbing This class includes: - installation in buildings or other construction projects of: = plumbing and sanitary equipment, gas fittings = heating, ventilation, refrigeration or air-conditioning equipment and ducts = sprinkler systems This class excludes: - installation of electrical heating systems, see 45.31 Other construction This class includes: installation - installation of illumination and signaling systems for roads, railways, airports and harbors - installation in buildings or other construction projects of fittings and fixtures not elsewhere classified Finish works Plastering This class includes: - application in buildings or other construction projects of interior 45300000 45213316 45310000 except: - 45316000

45.32

45320000

45.33

45330000

45.34

45234115 45316000 45340000

45.4 45.41

45400000 45410000

45.42

Joinery installation

45.43

Floor and wall covering

45.44

Painting and glazing

45.45

Other finish works

and exterior plaster or stucco, including related lathing materials This class includes: - installation of not selfmanufactured doors, windows, door and window frames, fitted kitchens, staircases, shop fittings and the like, of wood or other materials - interior completion such as ceilings, wooden wall coverings, movable partitions, etc. This class excludes: - laying of parquet and other wood floor coverings see 45.43 This class includes: - laying, tiling, hanging or fitting in buildings or other construction projects of: = ceramic, concrete or cut stone wall or floor tiles = parquet and other wood floor coverings = carpets and linoleum floor coverings, including of rubber or plastic = terrazzo, marble, granite or slate floor or wall coverings = wallpaper This class includes: - interior and exterior painting of buildings - painting of civil engineering structures - installation of glass, mirrors, etc. This class excludes: - installation of windows, see 45.42 This class includes: - installation of private swimming pools - steam cleaning, sand blasting and similar activities for building exteriors - other building completion and finishing work n.e.c This class excludes: - interior cleaning of buildings and other structures, see 74.70

45420000

45430000

45440000

45212212 and DA04 45450000

45.5

45.50

Renting of construction or demolition equipment with operator Renting of construction or demolition equipment

45500000

This class excludes: - renting of construction or

45500000

with operator

demolition machinery and equipment without operators, see 71.32

Schedule No. 2 to Act CVIII of 2011 List if products used in the field of defense
Chapter 25: Chapter 26: Chapter 27: Salt; sulfur; earths and stone; plastering materials, lime and cement Metallic ores, slag and ash Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes excluding: ex 2710: special engine fuels Inorganic chemicals; organic and inorganic compounds of precious metals, of rare-earth metals, of radioactive elements and of isotopes excluding: ex 2809: explosives ex 2813: explosives ex 2814: tear gas ex 2828: explosives ex 2832: explosives ex 2839: explosives ex 2850: toxic products ex 2851: toxic products ex 2854: explosives Organic chemicals excluding: ex 2903: explosives ex 2904: explosives ex 2907: explosives ex 2908: explosives ex 2911: explosives ex 2912: explosives ex 2913: toxic products ex 2914: toxic products ex 2915: toxic products ex 2921: toxic products ex 2922: toxic products ex 2923: toxic products ex 2926: explosives ex 2927: toxic products ex 2929: explosives Pharmaceutical products Fertilizers Tanning and dyeing extracts; tannings and their derivatives; dyes, colors, paints and varnishes; putty, fillers and stoppings; inks Essential oils and resinoids; parfumery, cosmetic or toilet preparations Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing and scouring preparations, candles and similar articles, modeling pastes and dental waxes Albuminoidal substances; glues; enzymes Photographic and cinematographic goods Miscellaneous chemical products excluding:

Chapter 28:

Chapter 29:

Chapter 30: Chapter 31: Chapter 32: Chapter 33: Chapter 34:

Chapter 35: Chapter 37: Chapter 38:

Chapter 39:

Chapter 40:

Chapter 41: Chapter 42: Chapter 43: Chapter 44: Chapter 45: Chapter 46: Chapter 47: Chapter 48: Chapter 49: Chapter 65: Chapter 66: Chapter 67: Chapter 68: Chapter 69: Chapter 70: Chapter 71: Chapter 73: Chapter 74: Chapter 75: Chapter 76: Chapter 77: Chapter 78: Chapter 79: Chapter 80: Chapter 81: Chapter 82:

Chapter 83: Chapter 84:

Chapter 85:

Chapter 86:

ex 3819: toxic products Artificial resins and plastic materials, celluloses esters and ethers; articles thereof excluding: ex 3903: explosives Rubber, synthetic rubber, factice, and articles thereof excluding: ex 4011: bulletproof tires Raw hides and skins (other than furskins) and leather Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut) Furskins and artificial fur; manufactures thereof Wood and articles of wood; wood charcoal Cork and articles of cork Manufactures of straw of esparto and of other plaiting materials; basketware and wickerwork Paper-making material Paper and paperboard; articles of paper pulp, of paper or of paperboard Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans Headgear and parts thereof Umbrellas, sunshades, walking-sticks, whips, riding-crops and parts thereof Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair Articles of stone, of plaster, of cement, of asbestos, of mica and of similar materials Ceramic products Glass and glassware Pearls, precious and semi-precious stones, precious metals, rolled precious metals, and articles thereof; imitation jewelry Iron and steel and articles thereof Copper and articles thereof Nickel and articles thereof Aluminum and articles thereof Magnesium and beryllium and articles thereof Lead and articles thereof Zinc and articles thereof Tin and articles thereof Other base metals employed in metallurgy and articles thereof Tools, implements, cutlery, spoons and forks, of base metal; parts thereof excluding: ex 8205: tools ex 8207: tools, parts Miscellaneous articles of base metal Boilers, machinery and mechanical appliances; parts thereof excluding: ex 8406: engines ex 8408: other engines ex 8445: machinery ex 8453: automatic data processing machines ex 8455: parts of machinery under heading 84.53 ex 8459: nuclear reactors Electrical machinery and equipment; parts thereof excluding: ex 8513: telecommunication equipment ex 8515: transmission apparatus Railway and tramway locomotives, rolling-stock and parts thereof; railway and tramway tracks fixtures and fittings; traffic signaling equipment of all kinds (not electrically

Chapter 87:

Chapter 89:

Chapter 90:

Chapter 91: Chapter 92: Chapter 94:

Chapter 95: Chapter 96: Chapter 98:

powered) excluding: ex 8602: armored locomotives, electric ex 8603: other armored locomotives ex 8605: armored wagons ex 8606: repair wagons ex 8607: wagons Vehicles, other than railway or tramway rolling-stock, and parts thereof excluding: 8708: tanks and other armored vehicles ex 8701: tractors ex 8702: military vehicles ex 8703: breakdown trucks ex 8709: motorcycles ex 8714: trailers Ships, boats and floating structures excluding: ex 8901 A: warships Optical, photographic, cinematographic, measuring, checking, precision, medical and surgical instruments and apparatus; parts thereof excluding: ex 9005: binoculars ex 9013: miscellaneous instruments, lasers ex 9014: telemeters ex 9028: electrical and electronic measurement instruments ex 9011: microscopes ex 9017: medical instruments ex 9018: mechano-therapy appliances ex 9019: orthopedic appliances ex 9020: X-ray apparatus Clocks and watches and parts thereof Musical instruments; sound recorders or reproducers; television image and sound recorders or reproducers; parts and accessories of such articles Furniture and parts thereof; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings excluding: ex 9401: aircraft seats Articles and manufactures of carving or molding material Brooms, brushes, powder-puffs and sieves Miscellaneous manufactured articles

Schedule No. 3 to Act CVIII of 2011 Services

Subject Categor y No. 1 Maintenance and repair services 6112, 6122, 633, 886 from 50100000-6 to 50884000-5 (except from 50310000-1 to 50324200-4 and 50116510-9, 50190000-3, 50229000-6, 50243000-0) and from 51000000-9 to 51900000-1 from 60100000-9 to 60183000-4 CPC Reference No. CPV Reference No.

Land transport services, including

712 (except 71235),

armored car services, and courier services, except transport of mail 3 Air transport services of passengers and freight, except transport of mail

7512, 87304

73 (except 7321)

Transport of mail by land and by air

71235, 7321

Telecommunications services

752

Financial services: a) Insurance services b) Banking and investment services Computer and related services

ex 81, 812, 814

(except 60160000-7, 60161000-4, 60220000-6), from 64120000-3 to 64121200-2 from 60410000-5 to 60424120-3 (except 60411000-2, 60421000-5) and 60500000-3, from 60440000-4 to 60445000-9 60160000-7, 60161000-4, 60411000-2 60421000-5 from 64200000-8 to 64228200-2, from 72318000-7 and 72700000-7 to 72720000-3 from 66100000-1 to 66720000-3

84

Research and development services

85

9 10 11

Accounting, auditing and bookkeeping services Market research and public opinion polling services Management consulting services and related services

862 864 865, 866

from 50310000-1 to 50324200-4, from 72000000-5 to 72920000-5 (except 72318000-7 and from 72700000-7 to 72720000-3), 79342410-4 from 73000000-2 to 73436000-7 (except 73200000-4, 73210000-7, 73220000-0 from 79210000-9 to 79223000-3 from 79300000-7 to 79330000-6 and 79342310-9, 79342311-6 from 73200000-4 to 73220000-0 from 79400000-8 to 79421200-3 and 79342000-3, 79342100-4, 79342300-6, 79342320-2, 79342321-9, 79910000-6, 79991000-7, 98362000-8 from 71000000-8 to 71900000-7 (except 71550000-8) and 79994000-8

12

13 14 15 16

Architectural services; engineering services and integrated engineering services; urban planning and landscape engineering services; related scientific and technical consulting services; technical testing and analysis services Advertising services

867

from 79341000-6 to 79342200-5 (except 79342000-3 and 79342100-4 Building-cleaning services and 874, from 82201 to 82206 from 70300000-4 to 70340000-6, and property management services from 90900000-6 to 90924000-0 Publishing and printing services on 88442 from 79800000-2 to 79824000-6 a fee or contract basis from 79970000-6 to 79980000-7 Sewage and refuse disposal services; 94 from 90400000-1 to 90743200-9 sanitation and similar services (except 90712200-3 from 90910000-9 to 90920000-2 and 50190000-3, 50229000-6, 50243000-0

871

Schedule No. 4 to Act CVIII of 2011 Services

Subject Categor y No. 17 18 19 20 Hotel and restaurant services Railway transport services Water transport services Supporting and auxiliary transport services 64

CPC Reference No.

CPV Reference No.

711 72 74

21 22

Legal services Personnel placement and supply services

861 872

23 24

Investigation and security services, except armored car services Education and vocational education services Health and social services

873 (except 87304) 92

from 55100000-1 to 55524000-9 and from 98340000-8 to 98341100-6 from 60200000-0 to 60220000-6 from 60600000-4 to 60653000-0 and from 63727000-1 to 63727200-3 from 63000000-9 to 63734000-3 (except 63711200-8, 63712700-0, 63712710-3 and from 63727000-1 to 63727200-3) and 98361000-1 from 79100000-5 to 79140000-7 from 79600000-0 to 79635000-4 (except 79611000-0, 79632000-3, 79633000-0) and from 98500000-8 to 98514000-9 from 79700000-1 to 79723000-8 from 80100000-5 to 80660000-8 (except 80533000-9, 80533100-0, 80533200-1) 79611000-0 and from 85000000-9 to 85323000-9 (except 85321000-5 and 85322000-2) from 79995000-5 to 79995200-7 and from 92000000-1 to 92700000-8 (except 92230000-2, 92231000-9, 92232000-6)

25

93

26

Recreational, cultural and sporting services

96

27

Other services