Decision No D.761/10/2024 by the Public Procurement Arbitration Board

Based on the ex officio initiative submitted by the Integrity Authority against the public procurement procedure titled “Procurement of road maintenance machines in the municipalities of Somlószőlős, Doba and Borszörcsök”, conducted by the Municipalities of Somlószőlős, Doba and Borszörcsök, the Public Procurement Arbitration Board (hereinafter: PPAB) found that both the contracting authorities and the two tenderers involved in the procedure, acting as Respondents, had committed infringements and imposed fines on them.

The PPAB found that both the contracting authorities and the tenderers involved in the procedure had materially breached fair competition requirements; and as a result, the contracting authority should have declared both tenders invalid and the public procurement procedure unsuccessful.

The contracting parties unlawfully modified the public procurement contract, without meeting contract modification requirements under Section 141(4)(c) of the of the Act CXLIII of 2015 on public procurement (hereinafter: PPA).  The joint contracting authorities failed to comply with their obligation to monitor and document contract performance, as set out in Section 142(1) of the PPA. 

Both the joint contracting authorities and the two respondents have requested judicial review of Decision No D. 761/10/2024 of the PPAB

In its final judgment, the Budapest Metropolitan Court dismissed the claim brought by the contracting authority and the two respondents, ruling that the PPAB had determined lawfully and on solid grounds that the parties committed infringements and had validly imposed fines on them as a result.