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Improving CompetitivePractices in Hungary’s PublicProcurement REDUCING SINGLE-BIDS AND ENHANCING SUPPLIERPARTICIPATION Improving CompetitivePractices in Hungary’sPublic Procurement REDUCING SINGLE‑BIDS AND ENHANCINGSUPPLIER PARTICIPATION This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Note by the Republic of Türkiye The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no singleauthority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic ofNorthern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiyeshall preserve its position concerning the “Cyprus issue”. Note by all the European Union Member States of the OECD and the European UnionThe Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. Theinformation in this document relates to the area under the effective control of the Government of the Republic of Cyprus. Please cite this publication as: OECD (2024),Improving Competitive Practices in Hungary’s Public Procurement: Reducing Single-bids and Enhancing SupplierParticipation, OECD Public Governance Reviews, OECD Publishing, Paris, https://doi.org/10.1787/5d1c1ec1-en. ISBN 978-92-64-56504-3 (print)ISBN 978-92-64-98469-1 (PDF)ISBN 978-92-64-52412-5 (HTML)ISBN 978-92-64-45918-2 (epub) OECD Public Governance ReviewsISSN 2219-0406 (print)ISSN 2219-0414 (online) Photo credits:Cover © Real Sports Photos/Shutterstock.com. Attribution 4.0 International (CC BY 4.0)This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword Public procurement is a key economic activity accounting for a significant share of GDP, representing16.4% of GDP and 33.8% of government expenditure in Hungary. Public procurement has a significantimpact on the quality of services provided to citizens,and on the economic and social development ofcountries. Tosecure value for money in their public procurement processes, public buyersusuallyrelyupon open and competitive bidding processestoensureoptimal participation fromsuppliers. Nonetheless, Hungary,likemany other OECDMembers, isexperiencinglow participation of economicoperatorsin public procurement.For example, arecent report of theEuropean Court of Auditorsfoundthatthe level of competition for public procurement in the European Union’s Single Market decreasedsignificantlyfrom 2011-2021, and noteda lack of awareness that competition iscrucialfor value for money. Access to procurement opportunities is a key principle of a sound public procurement system. The 2015OECD Recommendation on Public Procurement highlights that ensuring broad access to the publicprocurement market is essentialforachievingvalue for moneyandfordrivinginnovation, quality, andefficiency,as it promotes competition and a level playing field.A healthy level of competition, in turn,provides benefits for both governments and businesses by stimulating economic productivity, innovation,integrity, and SME development. Studies that have quantified the cost savings from increased competitioninprocurement markets also conclude that rules and procedures that promote transparency andcompetition tend to reducecontractualprices substantially. A competitive environment has also shown toincrease the trust of citizens and the private sector in the public procurement system, and to reduce therisks of unwanted market practi