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Line Olsen

New Public Procurement thresholds 2020/2021

New Thresholds

The European Commission published the updated procurement thresholds for 2020/2021 on the 31st of October 2019.

There is still much uncertainty about what will happen next with a confirmed Brexit delay until 31st of January. Much will depend of the results of the upcoming election on the 12th of December 2019.

For now, United Kingdom remains a part of European Union and the new thresholds will therefore apply from 1st of January 2020.

Regulation

The Regulations set out detailed procedures for the award of contracts whose value equals or exceeds the procurement thresholds. Details of the Regulations are given below.

England, Wales and Northern IrelandScotland
The Public Contracts Regulations 2015The Public Contracts (Scotland) Regulations 2015
The Utilities Contracts Regulations 2016The Utilities Contracts (Scotland) Regulations 2016
The Concession Contracts Regulations 2016The Concession Contracts (Scotland) Regulations 2016
The Defence and Security Public Contracts Regulations 2011

Social and other specific services are subject to the ‘light touch regime’ as described in a previous blog.

Public Contracts

Thresholds are exclusive of VAT.

 Supply, Services and Design ContractsWorks ContractsSocial and other specific services
Central Government

£122,976

€139,000

£4,733,252

€5,350,000

£663,540

€750,000

Other Contracting Authorities

£189,330

€214,000

£4,733,252

€5,350,000

£663,540

€750,000

Small Lots

£70,778

€80,000

£884,720

€1,000,000

n/a

Small lot is a contract, or part of a contract, that is exempt from the public procurement rules. You can read more about it here.

Utility Contracts

Thresholds are exclusive of VAT.

 Supply, Services and Design ContractsWorks ContractsSocial and other specific services
Utility Authorities

£378,660

€428,000

£4,733,252

€5,350,000

£884,720

€1,000,000

Concession Contracts

Thresholds are exclusive of VAT.

 Concession Contracts
Authorities

£4,733,252

€5,350,000

Defence and Security Contracts

Thresholds are exclusive of VAT.

 Supply, Services and Design ContractsWorks ContractsSocial and other specific services
Defence and Security Authorities

£378,660

€428,000

£4,733,252

€5,350,000

n/a

 

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Excluding suppliers based on poor past performance

All of the UK has now transposed the new EUunacceptable Public Sector Directive 2014. One of the existing provisions is that buyers now have a discretionary right to exclude suppliers based on poor past performance.

We have all heard the stories. A supplier winning a contract because they make all the right promises, but when the contract starts, they just don’t meet the standards expected. The buyer is not happy. They are stuck in a contract that most likely ends up costing them more. In addition, the suppliers that didn’t win are demoralized. What is the point of bidding when other suppliers just lie and win? Therefore, this is a welcome provision by many, a hope of getting rid of the unscrupulous operators in the market.

But is it that easy? As a buyer, and you have had a bad experience with this one supplier who is bidding on your contract – or you have heard about their poor performance from someone else – can you decide to exclude them just like that?

Continue reading “Excluding suppliers based on poor past performance”

Procurement terminology: what are ‘small’ lots?

In public procurement, lots, and in particular ‘small lots’ small lotare often an area of much confusion. What is a small lot and what does the small lot threshold mean?

Hopefully this SMALL blog entry will answer a LOT of your questions.

Continue reading “Procurement terminology: what are ‘small’ lots?”

Will we see an increase in SMEs winning contracts in Ireland?

The Irish Public Sector spends €8.5 billion on goods and services annually.  Is your company getting a slice of this cake? Have you considered how to get into this market?

Did you know that if you are among the 99.7% of active enterprises in Ireland defined as an SME, statistically speaking, you have a higher chance of winning a contract than SMEs in the rest of EU? Where the European Commission reports that SMEs win 45% of the aggregated value of contracts, the Office of Government Procurement has previously reported that SMEs win an estimated 66% of contracts in Ireland.

Continue reading “Will we see an increase in SMEs winning contracts in Ireland?”

New standard forms for OJEU notices. Simplification or burden?

The EU published the new standard forms for OJEU notices on 12th November 2015. In England and Wales, where The Public Contracts Regulations 2015 came into force in February 2015, the new standard forms for public sector came into force on 3rd of December 2015. It will be some time before all contracting authorities are using the new forms but a few are trickling in and you might have seen some of these on Tenders Direct already.

The new forms reflect the simplified rules and procedures of the new EU Directives. In this blog I will highlight some of the biggest changes we will see with the new forms and flag up some of the pros and cons they present to both buyers and suppliers.

Continue reading “New standard forms for OJEU notices. Simplification or burden?”

Self reporting requirements entering into force from 1st September 2015

In April I posted a blog about the ban on PQQs and restrictions that have been put in place for the use of supplier questionnaires. This made it clear that when a contracting authority is deviating from the rules and the guidance issued, they would be expected to self report to the Crown Commercial Service.

These self reporting requirements are now coming into force on 1st of September 2015, so as a reminder this blog will highlight what are considered to be deviations and how you can report this.

Continue reading “Self reporting requirements entering into force from 1st September 2015”

SME access by splitting contracts into lots

In 2014 the European Union adopted new procurement Directives for Public sector, Utility sector and Concessions contracts.  With the reform of the Directives they hope to achieve better access to public contracts for SMEs. One of the measures set into place to do this is the rule encouraging contracting authorities to split contracts into lots. The Public Contracts Regulations 2015 transposed the 2014 Public Sector Directive in February 2015, and with it the “Split your lots” rule. With this blog I hope to make it a bit more clear what a contracting authority is required to do.

Continue reading “SME access by splitting contracts into lots”

The ban on PQQs and restrictions for use of supplier questionnaires

What many have failed to realise is that with the Public Sector Directive 2015 the Cabinet Office has introduced strong restrictions on Public Sector Buyers when it comes to prequalification of suppliers and the use of supplier questionnaires.

The use of prequalification procedures has been banned for some procurements and the use of standard supplier questionnaires introduced for others. Contracting authorities that fail to follow these restrictions are also expected to self-report. There is no doubt that these changes will have a big impact on the public sector going forward, and suppliers will be affected as well.

So why has this been introduced?

Continue reading “The ban on PQQs and restrictions for use of supplier questionnaires”

Contracts Finder – Friend or foe?

  • What is Contracts Finder?
  • Why do Contracting Authorities in England have to publish on Contracts Finder?
  • How do you publish to Contracts Finder?

Have you asked yourself any of these questions? This short blog will provide the answers.

About Contracts Finder:

Contracts Finder was first launched in 2011 by the Prime Minister as an online tool displaying the details of public contract opportunities and contracts above £10,000. The launch was a step by the government towards creating a more transparent system that removes obstacles and provides better access to contract opportunities for small businesses.

With the Public Contracts Regulations 2015 coming into force in the UK on the 26th of February, a BETA version of the new Contracts Finder was launched. It is intended that the new Contracts Finder along with the reforms recommended by the Lord Young’s report, introduced within part four of the Public Contracts Regulations 2015 is the governments next step in providing smaller businesses (SME’s) and voluntary or charitable organisations (VCSEs) with easier access to public contract opportunities and improve transparency. Continue reading “Contracts Finder – Friend or foe?”

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