Közbeszerzési Hatóság

5. §

Contracting authorities

5. §

1. For the purposes of this Act, the following entities are subject to the obligation to conduct procurement procedures:

  1. ministries,
  2. the central purchasing body designated by the Government,
  3. the State, all the budgetary authorities, public foundations, local governments, local and national self-governments of nationalities, associations of local governments and self-governments of nationalities, associations of local governments for the purpose of regional development, development councils of sub-regions;
  4. legal persons specified in Article 9(1)(h)-(i);
  5. entities having legal capacity, which are established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character or which pursue any of such activities, provided that one or more entities specified in points (a)-(e), the Parliament or the Government can exercise, either separately or together, a dominant influence over it or its operation is financed for the most part by one or more of those entities (bodies);

2.       In relation to procurements to be realised using subsidies, entities or persons not covered by paragraph 1 whose procurement is subsidised directly by one or more entities or persons subject to paragraph 1 to an extent exceeding 50% in case of procurements equalling or exceeding EU threshold, and to an extent exceeding 75% in case of procurements equalling or exceeding national threshold but not reaching EU threshold, shall conduct procurement procedures, provided that the subject-matter of the procurement is (This amendment entered into force on 1 January 2017.)

  1. works which comprise civil engineering activities as listed in Annex I,
  2. works which comprise building work for hospitals, facilities intended for sports, recreation and leisure, school and university buildings and buildings used for administrative purposes or
  3. a service linked to works under points (a) or (b).

3.       In addition to the provisions set out in paragraph 2, in relation to procurements to be realised using non-repayable subsidies, not including non-repayable subsidies combined with financial instruments, entities or persons not covered by paragraph 1 whose public works, public supply or public services contract is subsidised directly by at least HUF 40 million by one or more entities or persons subject to paragraph 1, shall conduct procurement procedures, except if the procurement is realised (This amendment entered into force on 15 June 2016.)

  1. using an investment subsidy set out in a single government decision,
  2. using single job creation subsidy,
  3. using education, furthermore vocational training centre establishment and development subsidy,
  4. using research-development and innovation aimed subsidy,
  5. using the subsidy of undertakings’ investment aimed at reindustrialisation or (This amendment entered into force on 1 January 2017.)
  6. using any subsidy applied for prior to 1 November 2015, which is funded by the European Union or from national resources (This amendment entered into force on 24 December 2015.)

4.         If an entity not covered by paragraph 1 and 2 conducts a procurement procedure under this Act on the basis of an obligation assumed by it voluntarily or in a contract, or on the basis of an obligation set out by a separate act of legislation, the entity in question shall be subject to the provisions set out herein.

5.         Paragraph 3 shall not be applied, if the Government has granted exemption from its application in a single government decision based on the proposal of the minister responsible for public procurement. Such exemption may be requested, if – considering the particularities of the procurement to be realised using subsidies - the application of the procurement procedure did not enhance the effective use of public funds and the procedure of the entity under paragraph 3 ensures the optimum use of the subsidy. By 31 May each year, the texts of all single government decisions taken on such exemptions during the previous year shall also be published by the Government, summarized in an informative notice in the Hungarian Official Gazette (Magyar Közlöny). (This paragraph entered into force on 1 January 2017.)