2018 Procurement Thresholds

The EU Procurement Thresholds 2018-2019 have been released. These are the value thresholds for contracts governed by the Public Contracts Regulations – contracts that require publication throughout the European Union by advertisement in the Official Journal of the European Union (OJEU) – and are in place from 1 January 2018.

If your business works with the MOD and/other public sector bodies, then it is essential that you are aware of the value thresholds going forward.

Find out more about European procurement law below.

European Procurement Law

The Public Contract Regulations 2015 transpose the EU Public Contracts Directive into law in England, Wales and Northern Ireland. This Directive sets out the law around all aspects of public procurement.

These Regulations are relevant to all businesses working with the public sector as the Treaty on the Functioning of the European Union applies to all procurement activity regardless of value.

This means that the main principles of the Treaty should still be applied to contracts that sit below the thresholds at which advertising in the Official Journal of the European Union is required. It also includes contracts that are exempt from application of the EU Procurement Directives.

What are the main principles?

  • Transparency
  • Equal treatment and non-discrimination
  • Proportionality
  • Mutual recognition

The Public Contracts Regulations

The European Public Contracts Directive is transposed into UK law by the Public Contracts Regulations 2015 and the Procurement (Scotland) Regulations 2015. It governs the procurement activities of public sector bodies including government departments, local authorities and NHS Trusts.

Public Contracts Regulations 2015

Public Contracts (Scotland) Regulations 2015

Supplies and Service Contracts

 

Works Contracts Social and other specific services

 

Central Government* £118,133|€144,000 £4,551,413|€5,548,000 £615,278|€750,000

Other public sector contracting authorities
£181,302|€221,000 £4,551,413|€5,548,000 £615,278|€750,000
Small Lots £65,630|€80,000 £820,370|€1,000,000 N/A

* and Entities listed in Schedule 1 PCR 2015 & PCR(S) 2015

The Defence & Security Public Contracts Regulations

The Defence & Security Regulations 2011 currently apply to entities operating in the fields of defence and security. The specialised nature of the market means that specific thresholds have been created for this sector.

Defence and Security Public Contracts Regulations (2011)

 

Supplies and Service Contracts Works Contracts
 

All sectors

 

£363,424|€443,000 £4,551,413|€5,548,000
 

Small Lots

 

£65,630|€80,000 £820,370|€1,000,000

 

Concession Contracts Regulations

The Concession Contracts Regulations 2016 and Concession Contracts Regulations (Scotland) 2016 govern contracts under which a contracting authority or utility outsources works or services to a company which has the right to commercially exploit the works or services to recoup its investment and make a return.

Concessions Contracts Regulations 2016

Concessions Contracts (Scotland) Regulations 2016

Service Contracts
Works Contracts

All sectors
£4,551,413|€5,548,000 £4,551,413|€5,548,000

The new thresholds apply to all contracting authorities, as defined by the Public Contracts Regulations 2015, including all central government departments, their Executive Agencies, Non-Departmental Public Bodies, Executive Agencies and the wider public sector.