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New procurement thresholds: how does this affect your business?

Thursday January 9th, 2014

Picture depicting business opportunties in new procurement thresholds

The European Commission announced the new procurement thresholds which took effect on the 1st January 2014 which, when converted to sterling, are marginally lower than they were in 2013.

The European public contracts directive applies to public authorities including, amongst others, NHS Authorities and Trusts, government departments and local authorities. The European utilities contracts directives, on the other hand, applies to certain utility companies operating in Transport, Water and Energy sectors.

The directives set out detailed procedures for the award of contracts whose value either equals or exceeds specific thresholds. The details of the thresholds are given bellow and are net of VAT.

 

Public Contracts Regulations 2006 – From 1 January 2014

 

SUPPLIES

SERVICES

WORKS

Entities listed in Schedule 1*

£111,676

(€134,000)

£111,676**

(€134,000)

£4,322,012***

(€5,186,000)

Other public sector contracting authorities

£172,514

(€207,000)

£172,514

(€207,000)

£4,322,012***

(€5,186,000)

Indicative Notices

£625,050

(€750,000)

£625,050

(€750,000)

£4,322,012

(€5,186,000)

Small lots

£66,672

(€80,000)

£66,672

(€80,000)

£833,400

(€1,000,000)

 

*Schedule 1 of the Public Contracts Regulations 2006 lists central government bodies subject to the World Trade Organisation’s (WTO) Government Procurement Agreement (GPA.)

These thresholds will also apply to any successor bodies

** With exceptions of the following services, which have a threshold of £172,514 (€207,000)

  • Research & Development Services (Category 8)
  • Part B (residual) services
  • Subsidised services contracts under regulation 34; and
  • The following Telecommunications services in Category 5

CPC 7524 – Television and Radio Broadcast Services

CPC 7525 – Interconnection services

CPC 7526 – Integrated telecommunications services

***Including subsidised works contracts under regulation 34.

Utilities Contracts Regulations 2006 – From 1 January 2014

 

SUPPLIES

SERVICES

WORKS

All sectors

£345,028

(€414,000)

£345,028

(€414,000)

£4,322,021

(€5,186,000)

Indicative Notices

£625,050)

(€750,000)

£625,050)

(€750,000)

£43,22,012)

(€5,186,000)

Small lots

£66,672)

(€80,000)

£66,672)

(€80,000)

£833,400)

(€1,000,000)

The Defence and Security Public Contracts Regulations 2006 – From 1 January 2014

SUPPLIES

SERVICES

WORKS

All sectors

£345,028

(€414,000)

£345,028

(€414,000)

£4,322,021

(€5,186,000)

Indicative Notices

£625,050)

(€750,000)

£625,050)

(€750,000)

£43,22,012)

(€5,186,000)

Small lots

£66,672)

(€80,000)

£66,672)

(€80,000)

£833,400)

(€1,000,000)

 

What effects will this have on your business?

The thresholds, which are revised every two years, apply to applications of procedures for the awarding of contracts under EU public procurement directives.

As the thresholds have reduced slightly it may open up increased opportunities for businesses and increase the number of tender contracts available. Keeping up to date with these thresholds and understanding the procurement landscape is essential when you are submitting contract bids. Here at Tracker, we’ll ensure your business is best placed for business growth by providing your business with the necessary relevant contract opportunities, the essential market insight and intelligence and the knowledge and skills required to win.

Knowing your thresholds and winning with Tracker

In order to get as much information as possible on the new thresholds and other essential news, market intelligence is key to staying up to date and one step ahead of your competitors.

Twin this with our tender alerts service and you’ll be well on your way to winning the biggest contracts all over the world.

Sign up for a FREE TRIAL today and find out how Tracker can help you win.

About the author

Nicola Smith is a Communications and Social Media Officer and regularly blogs on supplier related issues. You can find Nicola on Google+ and LinkedIn. You can also visit the Tracker LinkedIn page.

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