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Procurement Arbitration Board fines HungaroControl HUF 2m

The Procurement Arbitration Board announced Tuesday it has fined state-owned air traffic control company HungaroControl HUF 2 million (€7,223) because it signed a liability-insurance contract without announcing a procurement process.

HungaroControl's liability insurance contract ended March 31. HungaroControl received two valid bids in the first round of a tender it invited in February, one worth $1.419 million, excluding VAT, from the Hungarian unit of Union Vienna Insurance group, and another worth net $2.225 million from Allianz Hungária and the Hungarian branch of Chartis Europe.

The joint bidders reduced their bid to $1.4 million, excluding VAT, during the negotiations while Union was excluded from the bidding as it failed to complement as asked its own bid. Thus the joint tender remained the only bid. Public procurement regulations, however, do not allow a company to sign a contract with a single remaining bidder, therefore the tender was declared unsuccessful.

HungaroControl, pressed by time, launched a private procurement in the middle of March, inviting Allianz Hungaria and the Chartis Europe to bid, and accepted the net $1.4 million bid submitted. (MTI-Econews)