* 2018/19 Public Procurement Thresholds Update Available here *
When procuring goods or services over the financial threshold a public authority must do so under the Public Contracts Regulations 2015 in England, Wales and Northern Ireland and the Public Contracts (Scotland) Regulations 2015 in Scotland.
The current thresholds are as follows:
Public contracts
| Supply, Services and Design Contracts | Works Contracts | Social and other specific services | |
| Central Government | £106,047
€135,000 |
£4,104,394
€5,225,000 |
£589,148 €750,000 |
| Other contracting authorities | £164,176
€209,000 |
£4,104,394
€5,225,000 |
£589,148 €750,000 |
| Small lots | £62,842
€84,000 |
£785,530
€1,000,000 |
n/a |
Social and other specific services are subject to the new ‘light touch regime’ as described in a previous blog.
Utility contracts
| Supply, Services and Design Contracts | Works Contracts | Social and other specific services | |
| Utility authorities |
£328,352 €418,000 |
£4,104,394
€5,225,000 |
£785,530 €1,000,000 |
Defence and security contracts
| Supply, Services and Design Contracts | Works Contracts | Social and other specific services | |
| Defence and Security authorities | £328,352
€418,000 |
£4,104,394
€5,225,000 |
n/a
|
Concession contracts
For the first time Concession Contracts are covered in EU Law under a separate directive and therefore separate regulations in the UK.
The EU Directive is found here: http://eur-lex.europa.eu/legal-content/GA/TXT/?uri=celex:32014L0023
The UK regulations here: http://www.legislation.gov.uk/uksi/2016/273/contents/made
The UK Directive gives instruction on how the value of a concession contract should be calculated: http://www.legislation.gov.uk/uksi/2016/273/regulation/9/made
The thresholds for publication in the OJEU refers to Article 8 (1) of the EU Directive which is:
- This Directive shall apply to concessions the value of which is equal to or greater than EUR 5 186 000.
The Sterling equivalent is £4,104,394.
Calculating estimated value
The calculation of the estimated value of a procurement exercise shall be based on the total amount payable, net of VAT, as estimated by the contracting authority, including any form of option and any renewals of the contracts as explicitly set out in the procurement documents.
Contracts subsidised by public funds
All applicable contracts which are subsidised by 50% or more of public funds must be advertised in the OJEU. From time to time a public body may part fund a project and request that the recipient of funding must advertise the procurement in line with public contracts regulations even if their contribution is less than 50% of the overall value. As such any recipient of public funding on a project should verify with the funding body what is expected of them in procuring for the project.
What are small lots?
See this blog.
How do I know if a contract is classed as works?
Many contractual requirements are a mixture of works and services. Whichever element is the highest in value should be taken as the contract nature when determining what threshold to apply. If you are unsure whether a specific element is classed as works or services then you can refer to Schedule 2 of the regulations which lists all activities which constitute works by CPV code:
http://www.legislation.gov.uk/uksi/2015/102/schedule/2/made
If the CPV code which fits your requirement is not in that list then it is not classed as a Works contract.
Questions? Leave a comment below.
