New thresholds have been applied to public procurement as of the 1st of January 2018.
The European Commission has announced new financial thresholds which will be applied to public procurement. The changes were applied on the 1st of January 2018 and will be in effect until the end of 2019.
Public authorities who procure goods or services which exceed the financial threshold must do so under the Public Contracts Regulations 2015 in England, Wales and Northern Ireland and the Public Contracts (Scotland) Regulations 2015; these regulations replaced the European public contracts directive (2014/24/EU).
Organisations which wish to procure services must advertise their requirements via the new thresholds in the Official Journal of the European Union (OJEU), as opposed to just putting it out to tender nationally.
The estimated value of the procurement will be calculated on the total amount payable, net of VAT which is estimated by the contracting authority. This includes any renewals of contracts and options included in the agreement as outlined in the procurement documentation.
There has been a slight increase between the 2016/2017 thresholds and the 2017/2018 thresholds for both Pound Sterling and the Euro. However, the change is minimal and it is unlikely to have a big impact for buyers and suppliers.
Threshold for Supply, Services and Design Contracts
| Central Government | Other Contracting Authorities | Small Lots |
| £118,133 | £181,302 | £65,630 |
Apollo Energy have established an Energy Framework Agreement to manage the tender process for public sector organisations, adhering to EU procurement laws, and our consultants can arrange this on your behalf. To find out more call us on 01257 239 500 or email us at the following address – [email protected].