What are contact thresholds?
Contract thresholds are a specific set of criteria that must be met in order for a public contracting authority to be subject to the provisions of the Procurement Act. Put simply, if a contract is expected to be above a set value, then certain notices must be published in order to comply with the Act. Below, we’ve listed the latest threshold figures:
Central government and NHS
Services & Supplies: £139,688
Non-central government authorities
Services & Supplies: £214,904
Non-central government authorities
Works: £5,372,609
Non-central government authorities
Utilities - Services & Supplies: £5,372,609
Utilities - Works: £5,372,609
Utilities - Light Touch: £884,720
Non-central government authorities
Concession - Works and Services: £5,372,609
Concession - Light Touch: £5,372,609
Non-central government authorities
Services & Supplies – Light Touch: £663,540
What if contracts are below these thresholds?
If a contract has an expected value that is lower than the threshold, this is known as a below threshold contract, and is subject to far fewer conditions. However, there are still certain notice requirements:
Below-Threshold Tender Notice: This notice must include a description of the goods, services, or works being procured, the criteria for selection, and the deadline for submitting tenders.
Contract Award Notice: Once a contract is awarded, a notice must be published to inform interested parties about the award. This notice should include details about the winning bidder, the value of the contract, and the reasons for the award decision.
Standstill Period Notice: Although not always mandatory for below-threshold contracts, it is good practice to observe a standstill period after the contract award notice is published. This period allows unsuccessful bidders to raise any concerns or challenges before the contract is finalised.
Does the Procurement Act require the publishing of KPIs?
Yes, the Act requires the publication of at least three supplier KPIs for goods and services above £5m. Contracting authorities must assess supplier performance against these KPIs at least every 12 months, and publish the information in the contract performance notice. Two other notices are needed: the contract details notice, which should include the relevant KPIs, and the contract termination notice, used for when the contract is terminated for poor performance.
The publishing of KPIs does not apply to concession contracts, light touch contracts, or frameworks (except for call out contracts under frameworks above £5m). It is also non-applicable when supplier performance cannot be appropriately measured, for example, in the case of one-off purchases.
What are pipeline notices?
These are notices designed to alert the market to current and future contract opportunities over a period of 18 months, and should be of particular benefit to small and medium-sized enterprises, who will be given enough time to plan for future work. Pipeline notices are a requirement for public organisations expecting to spend over £100m in the coming financial year.
For each procurement activity expected to exceed £2m, contracting authorities will need to publish a tender notice on the government’s central digital platform, and a transparency notice once the award has been made.
Tell me more about the central digital platform
The central digital platform is where public contracting authorities will need to publish all required information related to procurement, and where suppliers will be able to enter their information. An upgrade on the previous Find a Tender service, the platform will be released to coincide with the go-live date of the Procurement Act on February 24, 2025.
Enhancements to the previous service include:
- Straightforward registration and identification for procurement teams and suppliers
- Supplier business details are stored, and can be used for multiple bids
- Information can be shared easily between eSenders, buyers, and suppliers
- Greater visibility on public procurement opportunities, at no cost
- The ability to publish notices throughout the procurement lifecycle
Where can I learn more about the Procurement Act?
Our specially curated Procurement Act 2023 Hub contains a wealth of information and resources relating to the upcoming Act, including webinars, whitepapers, checklists, and more. You can also gain practical guidance through the government’s Transforming Public Procurement Knowledge Drops and learning modules (via registration with the Government Commercial College).