List of RED FLAGS indicators

Indicators are small programs that analyze each notice. If they found something risky, they attach flags to the notice. Below you can read the list of indicators currently used by Red Flags.

Contract notice

Accelerated procedure

The indicator tells if the contracting authority applies accelerated procedure (moreover, it implies a significant risk if there are no grounds mentioned for its use).

Contract-term implies risks

The indicator tells if the contracting authority wants to conclude a contract for an indefinite period or for longer than 4 years.

Contracting authority - database of K-Monitor

The contracting authority is listed in the database of K-Monitor.

Deadline for bids differs from date of opening

The indicator tells if the date of the opening of bids or requests to participate is not the same as the expiry of the deadline to submit bids or requests to participate in procurement procedures.

Economic and financial ability - lack of minimum criteria

The indicator tells if the publication of notice holds no prescription of minimum criteria with regard to economic and financial eligibility.

Economic and financial ability - requirement on capital

The indicator tells if the publication of notice holds a quantitative or minimum requirement of capital within the scope of economic and financial ability.

EU-funded contract as a reference

The indicator tells if the contracting authority, with regard to technical and professional capacity requires references "financed by EU-funds" (which might be an unduly restriction of competition).

Framework agreement - high estimated value

The indicator is only relevant in case of framework agreements and it tells if the estimated value exceeds 1.5 billion Forints in case of works or 1 billion Forints in case of acquisition of goods and services.

Framework agreement with a single bidder

The indicator is only relevant in case of procurement procedures for framework agreements and it tells if the contracting authority intends to conclude framework agreements with only one bidder.

Framework agreement with several bidders - number of participants is too low

The indicator is only relevant in case of procurement procedures for framework agreements and it tells if the contracting authority intends to conclude franework agreements with fewer bidders than the legal minimum (3).

High estimated value

The indicator tells if the estimated vaue of procurement exceeds 1.5 billion Forints in case of works or 1 billion Forints in case of acquisition of goods and services.

Inappropriate grounds for exclusion

The indicator tells if the legally required indication of the grounds for exclusion (or the indication thereof) is missing.

Lack of evaluation method

The indicator tells if the contracting authority does not indicate the evaluation method of bids among the the evaluation criteria.

Long term framework agreement

The indicator is only relevant in case of procurement procedures for framework agreements and it tells if the contracting authority intends to conclude framework agreements for a longer period of time than 4 years.

The indicator tells if the grounds for the use of negotiated procedure (launched by the publication of a contract notice) are not or wrongly stated.

Number of competitors - missing restricting criteria

The indicator tells if the contracting authority did not indicate the method of ranking if setting the range of the number of competitors.

Number of competitors is low

The indicator tells if the number of competitors determined by the contracting authority is lower than the legal minimum of bidders.

Past annual revenue statement required for too many years back

The indicator tells if the contracting authority demands past annual revenue statement from the part of the bidders for a longer time than the legal maximum (3 years).

Payment deadline as evaluation criterion

The indicator tells if the contracting authority - applying the principle of the economically most advantegous bid - lists payment deadline (and its duration) as an evaluation subcriterion.

Period of reference requirements deviating from the allowed

The indicator tells if the contracting auhority, within the scope of technical and professional capacity, restricts the past period of the required references unduly, by derogation from the period as defined by law (5-8 years in case of works, 3-6 years in case of acquisition of goods and services).

Rate of bid bond/estimated value is too high

The indicator tells if the bid bond required by the contracting authority exceeds a limit (2%) compared to the estimated value of procurement, as demanding a too high bid bond might restrict competition.

Reference requirements exceed estimated value.

The indicator tells if the contracting authority, with regard to technical and professional capacity, prescribes the certification of references of a higher total value than the estimated value of the procurement.

Renewal of the contract implies risks

The indicator tells if the potential number of renewals can be considered above average (3 ore more) or if that might result in a longer contract (4 or more years). Moreover, it can be of significant risk if there is no imformation available with regard to the possible renewals.

Required length of professional experience is too long

The indicator tells if the contracting authority, within the scope of technical and professional capacity, requires a professional experience of 5 or more years for the contracted experts.

Required revenue exceeds estimated value of the procurement

The indicator tells if the contracting authority requires bidders to warrant subject related revenue (as part of economic and financial ability) that exceeds the total estimated value of the procurement.

Requirement of a reference performed within one contract

The indicator tells if the contracting authority, when setting references, restricts the acceptance of past performances by only accepting references incorporated "within one contract" of a particular value and quantity.

Risk of cartel

The indicator tells if the subject of the procurement falls into an area carrying increased risk as defined by the Hungarian Competition Authority based on analysis of former agreements restricting competition.

Technical and professional capacity - lack of minimum criteria

The indicator tells if the published contract notice holds no prescription of minimum criteria with regard to technical and professional capacity.

Technical and professional capacity - restricting geographical requirements

The indicator tells if the contracting authority, with regard to technical and professional capacity, restricts the setting of eligibility criteria unduly by setting geographilcal requirements e.g. equipment, capacity within a distance, availability of an estate etc.

Timeframe to submit bids is too tight

The indicator tells if the expiry of the deadline for the submission of bids/requests to participate is shorter than the legal minimum, in accordance with the EU law (in case of an open proceudre, the expiry of the deadline for the submission of the bids is relevant).

Too few (or no) evaluation criteria

The indicator tells if the contracting authority does not define at least 2 evaluation criteria for the evaluation of bids.

Uncertain quantity

The indicator tells if the contracting authority allows a deviation of 50% or more with regard to the total quantity (to be acquired) or allows a deviation from the total quantity without charging a fee.

Contract award notice

Evaluation of bids with long term

The indicator tells if the actual duration of the evaluation of the bids (i.e. the period between the opening until the the sending of the notice on the results of the procedure) - extension included - exceeds the legal maximum.

Final contract value - deviation from estimated value

The indicator tells if the final total value of the contract is higher than the estimated value or if the final value is significantly (50%) lower than the estimate.

High final value

(Coming soon...)

Number of bids

The indicator tells a risk if the number of bids per procedure (part) is under 3, but also shows if 1 or 2 bids have been submitted.

(Partially) unsuccessful procedure - dubious grounds

The indicator tells if the procedure was unsuccessful and the contracting authority reasons with grounds (defined by law) qualified as risks - which means only invalid bids (requests to participate) have been submitted, the contracting authority itself has become unable to conclude a contract or the contracting authority has decided to declare the procedure invalid because a bidder (competitor) committed an act that harmed the fairness of the competition or the interest of other bidders.

(Partially) unsuccessful procedure - without any grounds

the indicator tells if the notice does not indicate the reason for its invalidness, even though the procedure has remained without results (there has been no winning bidder in at least one of the lots of the procurement).

Procedure without contract notice

The indicator tells if the contracting authority has applied or applies a procedure not launched by a contract notice.

Successful procedure - without entering into contract

the indicator tells if the procedure was successful (there is a winning bidder) but the parties have not concluded a contract.

Winner - database of K-Monitor

The winning bidder is listed in the database of K-Monitor.