Public Procurement Thresholds for 2020 & 2021

2020 & 2021 Public Procurement Thresholds

Procurement thresholds for public sector tenders are updated for 2020. Associate Consultant, Carl Rogers, is an expert on public procurement. In this post he explains the changes and the effects of Brexit.

Public Procurement Thresholds for 2020 & 2021

Timings

The new procurement thresholds affect new tenders from 1st January 2020 to 31st December 2021. They have been extended post-Brexit (see below) so the thresholds still apply for 2021.

Update: see the latest public sector thresholds.

What has changed

The actual thresholds have increased slightly. This might be due to the fluctuating exchange rates compared to the last threshold renewal. The new thresholds are net of VAT and are as follows:

The Public Contracts Regulations 2020/21

For full details, see the Government’s Procurement Policy Note 06/19: New Thresholds 2020.

See the latest public sector thresholds.

How to Find Public Sector Tenders

Read our guide on finding public sector tenders. It explains how to use TED, Contracts Finder and other public-sector procurement portals to find tenders.

Brexit

You may ask how these thresholds will be affected by Brexit? In theory, from 31st January 2020, they will not apply as the UK will no longer be subject to the EU procurement directives regime. However, the Government agreed an 11 month transition period ending 31st December 2020. It has transposed the EU procurement Directives (2014/24/EU) into UK law in the form of the Public Contracts Regulations 2015 and others. So, the rules and thresholds still apply.

Subsequently, the Government decided there will be no immediate changes to procurement policies for 2021. But from 1 January 2021 it will have the power to introduce new or temporary legislation. Any future move away from the EU Procurement directives may have an impact on the minimum timelines and processes for tenders. (e.g. advertising, response times etc.).

One change that will be made is the switch from publishing adverts on TED (OJEU) to placing them on the Find a Tender Service (FTS). Most e-tendering systems have already incorporated these changes into their workings. So, this is only something that public sector buyers must do.

Don’t forget Contracts Finder. The rules state that anything over £10k (central Government) or £25k local government needs to be published on contracts finder unless local rules or use of a framework allow for the market to be restricted. This requirement will remain after the UK leaves. The potential loophole of simply increasing local thresholds may be closed by the Government in time to come.

Read about Brexit in my other article.

If you need help with any aspects of tendering, contact us for an informal discussion about getting professional support.

Summary

Public sector procurement threshold levels have increased slightly for 2020 for high-value tenders.

For the moment, Brexit doesn’t look like it will have an immediate effect on tenders.

If you have any thoughts on public sector procurement, please add them in the comments box below.

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