Public Procurement 2020 – New Year, New Thresholds
The European Commission has published the finalised and agreed threshold values which shall apply to all contracts from 1st January 2020.
These revised thresholds shall remain fixed for the next two years. Since the UK is still a member of the EU, the thresholds have been published in their corresponding value in Pounds Sterling and in Euros, and will apply to contracts coming under public procurement legislation in the UK.
The revised thresholds show an increased value in all contracts, which is due to fluctuations in exchange rates over the previous two years. The European Commission’s revised threshold values, which shall take effect as of 1st January 2020 are as follows.
Public Contracts Regulations 2015
| Type of Contract | Previous Threshold | New Threshold |
|---|---|---|
| Central government authorities | ||
| Supplies | £118,133 | £122,976 |
| Services | £118, 133 | £122,976 |
| Works | £4,551,413 | £4,733,252 |
| Other public sector contracting authorites | ||
| Supplies | £181,302 | £189,330 |
| Services | £181,302 | £189,330 |
| Works | £4,551,413 | £4,733,252 |
| Light Touch Regime for Social and other specific services | £615,278 | £663,540 |
Utilities Contracts Regulations 2016
| Type of Contract | Previous Threshold | New Threshold |
|---|---|---|
| Supply and service contracts | £363,424 | £378,660 |
| Works contracts | £4,551,413 | £4,733,252 |
| Social and other specific services | £820,370 | £884,720 |
Concession Contracts Regulations 2016
| Type of Contract | Previous Threshold | New Threshold |
|---|---|---|
| Concession contracts (previous threshold) | £4,551,413 | £4,733,252 |
It will be important for all procuring entities in the UK, commencing award procedures after 1st January 2020 to be aware of these new thresholds in order to determine if their contracts are subject to the full scope of the EU procurement regime or not.
For further information on public procurement legal issues, please don’t hesitate to contact one of our sector specialists.
