The Hungarian competition authority, Gazdasági Versenyhivatal (GVH), has recently completed a rapid sectoral investigation focusing on public procurement in the mosquito control services market. The investigation found a notable reduction in the proportion of single-bid procurement procedures in this sector over recent years.

The GVH identified that the mosquito control market has unique characteristics and structural problems that may impede further decreases in single-bid procedures. The authority emphasized that a lack of competition allows bidders to set procurement prices freely, which can lead to inefficiencies in budget utilization and harm public interest.

In early 2023, the Hungarian government adopted an action plan aimed at increasing competition in public procurement, with a specific goal of significantly reducing the proportion of single-bid procedures. The GVH was tasked with conducting three sectoral investigations to uncover the reasons behind these single-bid procurements.

The rapid investigation process is designed to identify market problems that indicate distortions or limitations in competition, warranting urgent intervention. The GVH collected mandatory responses from numerous domestic mosquito control companies, local governments, and municipal associations during the investigation.

Findings revealed that the number of single-bid procedures and their total contract value in the mosquito control services category has significantly decreased. However, the investigation also highlighted that the market is limited by the specialized knowledge and equipment required for service provision, which restricts the number of capable bidders.

Additionally, local companies tend to offer the most competitive prices due to lower mobilization costs and local knowledge, often leading distant companies to refrain from bidding. The GVH suggested considering the initiation of training and equipment procurement support programs for domestic micro and small enterprises to promote the adoption of modern and environmentally friendly mosquito control technologies.

The investigation also pointed out that despite open procedures, the same consortium has consistently won national mosquito control program procurements, complicating the collection of multiple bids. This situation poses public health risks, as an invalid bid could disrupt service continuity.

To address these issues, the GVH recommends that companies not previously participating in these tenders consider consortium bidding similar to the current national provider. They also advised that any technical requirements perceived as barriers to new consortiums should be communicated during preliminary market consultations.

The GVH has made the draft report of the rapid sectoral investigation available for public consultation, allowing market participants to submit written comments until December 22, 2025. Following this period, the GVH will publish the final report along with a summary of the received comments.