THE PUBLIC PROCUREMENT ARBITRATION BOARD’S LEGAL REMEDY PROCEDURES

Legal remedy procedures initiated for the violation of legislation applicable to public procurements, public procurement procedures, works or service concessions, and concession award procedures.

Kulcsszavak: Legal remedy, Public procurement, Disregard Concession, Design contest, Arbitration board

The Arbitration Board shall proceed upon application or ex officio. The application for initiating the procedure and the document initiating ex officio procedures need to be submitted in writing to the Public Procurement Arbitration Board.

In legal remedy procedures the only available form of communication is electronic communication.

Electronic communication shall take place via the use of electronic forms. The electronic ‘Form for submitting applications/motions for legal remedy to the Public Procurement Arbitration Board’ is to be used for submitting an application for legal remedy or launching procedures ex officio and the electronic ‘Form for submitting other documents to the Public Procurement Arbitration Board’ is for submitting other documents (e.g. additional information, comments, attaching new letters of authorisation). The electronic forms can only be completed with the use of the general form-filling program (ÁNYK – available for installation from the www.nav.gov.hu website), after which the forms and the necessary attachments can be submitted to the Arbitration Board from the portal account of a responsible accredited public procurement consultant, chamber legal adviser, or person providing legal representation. During the course of electronic communication, the Arbitration Board sends the decisions it makes (orders and resolutions) and other documents to the portal account last used by the client (or the client’s representative) to submit documents.

The document initiating the procedure at the Arbitration Board (the application for legal remedy or for launching an ex officio procedure) shall include:

  1. the name and seat (residence) of the applicant or initiator and its representative (lawyer, responsible accredited public procurement consultant, legal adviser) and the facts supporting the eligibility of the applicant or initiator;
  2. the name and seat of the contracting authority of the procurement procedure concerned in the application, the subject-matter of the procurement and, in the case of division of the contract into lots, the lot concerned by the remedy, or, in the case of a purchase carried out without the conduct of a procurement procedure, the name and seat of the purchaser and the subject-matter of the purchase;
  3. the date when the infringement occurred and the date when the applicant or initiator learned thereof, in such a way that allows clear identification of each element of the application;
  4. the infringed provision of law and the evidence supporting the infringement in such a way that allows clear identification as regards each element of the application;
  5. the motion for the decision of the Public Procurement Arbitration Board and the reasons for such a decision, in a manner that allows clear identification with regards to each element of the application;
  6. the motion for ordering an interim measure and the reasons therefor;
  7. the name and seat (residence) known to the applicant or initiator of any entities possibly interested in the public procurement case;
  8. the conduct of any preliminary dispute settlement, its results, and the answer of the contracting authority, which shall be attached to the application.

In addition to the application, an editable version of the same application also has to be submitted to the Public Procurement Arbitration Board.

If the application or motion for legal remedy submitted by the applicant does not meet the above requirements, the Arbitration Board shall call upon the applicant to supply additional information. The time limit for submitting additional information is 5 days. If the applicant or the initiator fails to comply with the request for additional information, the Arbitration Board may reject the application or motion.

After the receipt of an application or motion that meets the above requirements, the legal remedy procedure is initiated and the contracting authority or purchaser in the public procurement procedure or procurement in question shall be required to make available the documents drawn up in connection with the procurement.

If any unlawful amendment or performance of the public procurement contract is identified, or if a public procurement procedure had not been held, the Arbitration Board shall make a decision within sixty days.

Otherwise, the Arbitration Board shall make its decision within fifteen days or, if hearings are held, twenty-five days from the initiation of the procedure.

The administrative deadline may be extended by ten days on one occasion.

Form for submitting applications/motions for legal remedy to the Public Procurement Arbitration Board

Form for submitting other documents to the Public Procurement Arbitration Board

Form for submitting applications for legal remedy against Public Procurement Arbitration Board decisions (administrative lawsui

The procedure of the Public Procurement Arbitration Board initiated with an application shall be subject to the payment of an administrative service fee, the amount of which shall be set as specified below:

In the case of concession award procedures, design contests, and public procurement procedures where the estimated value is at least equal to the EU thresholds, the basis of the administrative service fee is 0.5% of the estimated value of the procurement or, in the case the contract is divided into lots, the estimated value of the lot affected by the legal remedy, but shall be equal to at least HUF 200 000 and no more than HUF 25 000 000.

In the case of concession award procedures, design contests, and public procurement procedures where the value is less than the EU thresholds, the basis is 0.5% of the estimated value of the procurement or, in the case the contract is divided into lots the estimated value of the lot affected by the legal remedy, but shall be equal to at least HUF 200 000 but no more than HUF 6 000 000.

The rate of the administrative service fee depends on the number of elements in the application, as specified below:

1-3 elements in the application: the fee is equal to the amount specified above;

4-6 elements in the application: the fee is equal to 125% of the amount specified above;

7-10 elements in the application: the fee is equal to 150% of the amount specified above;

11-15 elements in the application: the fee is equal to 175% of the amount specified above;

16 elements or more in the application: the fee is equal to double the amount specified above.

The document verifying that the fee has been paid shall be attached to the application.

Bank account no.:

Hungarian State Treasury (National Bank of Hungary)

10032000-01720361-00000000

Public Procurement Arbitration Board

Budapest-Capital Regional Court

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Act CXLIII of 2015 (Public Procurement Act)

Act CL of 2016 (Public Administration Procedures Act)

Decree No 45/2015 of 2 November 2015 of the Minister heading the Prime Minister’s Office (on the administrative service fee payable for Public Procurement Arbitration Board procedures)

ME KFF HÁT