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OECD Public Governance ReviewsEnhancing the PublicProcurement PerformanceMeasurement Frameworkin HungaryASSESSING EFFICIENCY, COMPLIANCEAND STRATEGIC OBJECTIVES 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 TürkiyeThe 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),Enhancing the Public Procurement Performance Measurement Framework in Hungary: Assessing Efficiency,Compliance and Strategic Objectives, OECD Public Governance Reviews, OECD Publishing, Paris,https://doi.org/10.1787/afc1d91a-en.ISBN 978-92-64-32003-1 (print)ISBN 978-92-64-32742-9 (PDF)ISBN 978-92-64-39310-3 (HTML)ISBN 978-92-64-83635-8 (epub)OECD Public Governance ReviewsISSN 2219-0406 (print)ISSN 2219-0414 (online)Photo credits:Cover © photo.ua/Shutterstock.com.Corrigenda to OECD publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm.© OECD 2024The use of this work, whether digital or print, is governed by the Terms and Conditions to be found at https://www.oecd.org/termsandconditions. ENHANCING THE PUBLIC PROCUREMENT PERFORMANCE MEASUREMENT FRAMEWORK IN HUNGARY © OECD 2024ForewordPublic procurement is a key economic activity accounting for a significant share of GDP (16% of GDP inHungary and 12.9% of GDP in2021 in OECD countries).Aspublic procurement was considered as anadministrative taskfor many years, the need to measure its performance was not a top priority forgovernments.However, in the recent years, governments have been increasingly recognising the strategic role of publicprocurement for public service delivery and forobtaining broader outcomes. In addition, the pressure onpublic spending, as well as the need for more accountability, for monitoring the achievement of publicpolicies, and for better managing public procurement risks, all make the need for better measurement inthis area more urgent.Performance evaluation is usually conducted by defining key performance indicators (KPIs) that aremonitored over time. While the relevance of measuring performance is clearly recognised, practice oftenlags behind.Considering that “what countries measure is a signal of chat they value”, the OECD hasdeveloped in 2023 a comprehensive, ready-to-use performance measurement framework for consistentlyassessing procurement processes and supporting data-based policy and decision making in the publicprocurement fieldlaunched in 2023.Several OECD and non-OECD countries are already using the OECD public procurement performancemeasurement framework to establish their own frameworks. The Hungarian government committed, in itsRecovery and Resilience Plan and within the conditionality procedure for European Union funds, to set upa comprehensive measurement framework to regularly assess the performance of the public procurementsystem and to analyse the reasons behind low levels of competition in certain sectors. While thegovernment developed such a framework, it requested the support of the OECDin two main areas: i)assessing the public procurement measurement framework developedin November 2022 andprovidingkey recommendations for its improvement, and ii)improving the level of competition in the publicprocurement market. Therefore, this report is one of the outputs of a wider cooperation with the Hungariangovernment on publicprocurement.Assessing a public procurement measurement framework goes beyond simply assessing individual KPIs,it looks at key elements of the governance of a public procurement system from public procurementchallenges to the digitalisation of public procurement processes.The report was approved for publication by the Public Governance Committeeon21June2024andprepared for publication by the Secretariat. ENHANCING THE PUBLIC PROCUREMENT PERFORMANCE MEASUREMENT FRAMEWORK INHUNGARY © OECD 2024AcknowledgementsUnder the direction and oversight of Elsa Pilichowski, OECD Director for Public Governance, János Bertók,OECD Deputy Director for Public Governance, andPaulo Magina,ActingHead of the Infrastructure andPublic Procurement(IPP)Division, this review was co-ordinated and drafted by Kenza Khachani