After joining the European Union (EU), Hungary began remaking its procurement system to reflect EU procurement rules, creating a more harmonized system of public procurement. The new public procurement law was adopted in 2015 and it entered into force on November 1st of the same year.
The primary legal text regulating the sphere is the Act CXLIII of 2015 on Public Procurement (PPL), which defines national rules on public procurement procedures and concessions as well as implements the EU Directives 2014/23/EU, 2014/24/EU and 2014/25/EU . In addition to the main legislative act, the PPL is supplemented by several governmental and ministerial decrees, the aims of which are to regulate matters like centralized procurements, order of publication and standard forms. Particularity of the PPL of Hungary is that it has multiple exemptions for simplified procedures below EU thresholds. For instance, procurement of groceries, sport and cultural services are exempt from the PPL in case it is below the EU threshold.
Hungary has two bodies responsible for management and coordination of the public procurement system, the Procurement Management Office (PMO) and the autonomous Public Procurement Authority (KH). The PMO has primary responsibility for drafting legislation related to public procurement, but at the same time, it provides support and guidance to contracting authorities so that they comply with the law. The KH acts more as an analytical resource center of the public procurement system. It publishes operational and statistical information via annual reports, as well as the official Public Procurement Bulletin and the central register of award procedures. Based on its analytical products, it also issues non-binding guidance documents, organizes trainings and seminars for practitioners.
Public Procurement Legislation available at the following – link.
Public Procurement Portal of Hungary– link.