Thresholds
EC Public Sector and Utilities Contract Values Thresholds
The EC procurement rules apply to public authorities (including, among others, government departments, local authorities and NHS authorities and trusts) and certain utility companies operating in the energy, water, transport and telecomms sectors. The rules set out detailed procedures for the award of contracts whose value equals or exceeds specific thresholds. Details of the thresholds applying from 1 January 2012 to 31 December 2013 are given below. The thresholds are net of VAT.
PUBLIC CONTRACTS REGULATIONS 2006 – FROM 1 JANUARY 2012
| SUPPLIES | SERVICES | WORKS | |
| Entities listed in Schedule 1 | £113,057 (€130,000) |
£113,0572 (€130,000) |
£4,348,3503 (€5,000,000) |
| Other public sector contracting authorities | £173,934 (€200,000) |
£173,934 (€200,000) |
£4,348,350 (€5,000,000) |
| Prior Information Notices | £652,253 (€750,000) |
£652,253 (€750,000) |
£4,348,350 (€5,000,000) |
| Small Lots | £69,574 (€80,000) |
£69,574 (€80,000) |
£869,670 (€1,000,000) |
1 Schedule 1 of the Public Contracts Regulations 2006 lists central government bodies subject to the WTO GPA. These thresholds will also apply to any successor bodies.
2 With the exception of the following services, which have a threshold of £173,934 (€200,000)
- Part B (residual) services
- Research & Development services (Category 8)
- The following Telecommunications services in Category 5
- CPC 7524 - Television and radio broadcast services
- CPC 7525 - Interconnection services
- CPC 7526 - Integrated telecommunications services
- Subsidised services contracts under Regulation 34.
UTILITIES CONTRACTS REGULATIONS 2006 – FROM 1 JANUARY 2012
| SUPPLIES | SERVICES | WORKS | |
| All Sectors | £347,868 (€400,000) |
£347,868 (€400,000) |
£4,348,350 (€5,000,000) |
| Prior Information Notices | £652,253 (€750,000) |
£652,253 (€750,000) |
£4,348,350 (€5,000,000) |
| Small Lots | £69,574 (€80,000) |
£69,574 (€80,000) |
£869,670 (€1,000,000) |
Advertising the MOD's tender and contract opportunities
The MOD already leads the way in the transparency of its tender and contract opportunities and procedures. The MOD lowered the threshold for the advertisement of its tender and contract opportunities from 1 April 2011. In line with one of the key themes of the Defence Industrial Strategy (DIS), this was one of a range of initiatives aimed at making the MOD easier for SMEs to do business with. The MOD is committed to encouraging SME entry into a broader range of defence opportunities, and this change has been welcomed by the defence trade associations. All competitive contract opportunities for goods, services and works valued at greater than £10,000 must be advertised both before and after contract award on MOD DCO, unless the requirement meets the approved grounds for exclusion from MOD DCO (see 'Exemptions' below). All non-competitive contract opportunities with a value of over £40,000 are also required to be advertised on MOD DCO. The MOD's requirements for goods, services and works valued at £113,057 or above must also be advertised within the MOD DCB publication.
The advertising regimes and thresholds are as set out below:
£10,000 to £113,057 – All requirements for goods, services or works valued at equal to or less than £113,057 that are not exempt from being advertised in MOD DCO, can be advertised, at the discretion of MOD acquisition staff, on MOD DCO and on the Contracts Finder portal, the exception being requirements met by call-offs under an existing framework agreement.
£113,057 or above – All requirements for goods, services or works valued at equal to or greater than £113,057 will be advertised on MOD DCO and within MOD DCB unless the requirement meets the approved grounds for exclusion from MOD DCO and MOD DCB. Where EU Public Procurement Regulations apply, the requirement must be advertised in the Official Journal of the European Union (OJEU) as well as in MOD DCO/DCB.
Warlike Exempt: £869,716 or above – 'Warlike' requirements subject to Article 346 (previously Article 296) exemption of the EC Treaty valued at equal to or greater than £869,716 shall be advertised on MOD DCO, within MOD DCB and on the European Defence Agency (EDA)'s Electronic Bulletin Board (EBB) unless the requirement meets the approved grounds for exclusion from MOD DCO, MOD DCB or the EDA EBB.
MOD DCB is published fortnightly whereas MOD DCO is updated daily. Tender and contract notices are advertised in the Possible Future Purchases/Contract Notices, Tenders Invited, Contracts Awarded and Sub- Contract Opportunities sections of each. The Sub-Contract Opportunities section provides details of the MOD's Prime Contractors' requirements, while the Tenders Invited section includes the names and addresses of the companies that have been invited to tender for various Prime Contract requirements and which may be seeking sub-contractors for elements of their bids.
Subscriptions to MOD DCB are available from the publisher, BiP Solutions Ltd.The MOD DCO website is free to access upon registration. Further information regarding MOD DCO and MOD DCB can be found at www.contracts.mod.uk
