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New Public Procurement Thresholds for 1 January 2014 published

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18/12/2013

The European Commission has published the revised euro thresholds for the application of the procedures for the award of contracts under the EU public procurement directives (Directive 2004/17 (utilities), Directive 2004/18 (public sector contracts) and Directive 2009/81 (defence and security contracts)), which are to apply from 1 January 2014. We note that although EU thresholds have been revised upwards, the £sterling thresholds are slightly lower than the current thresholds due to fluctuations in exchange rates over the previous two years.

The thresholds for the application of the EU public procurement directives are revised every two years to ensure that they remain consistent with those that are used for the WTO Government Procurement Agreement, whose requirements are incorporated into the directives.

For the UK the thresholds in the Public Contracts Regulations 2006, Utilities Contracts Regulations 2006 and the Defence and Security Public Contracts Regulations 2011 will be amended as follows.

Public Contract Regulations

Current threshold

Revised EU threshold

Applicable from

1 January 2014

Revised UK threshold Applicable from

1 January 2014

Supply and service contracts/design contests awarded by central government bodies subject to the WTO GPA

EUR 130,000/ £113,057

EUR 134,000

£111,676

Supply and service contracts/design contests awarded by other contracting authorities

EUR 200,000/ £173,934

EUR 207,000

£172,514

Works contracts, subsidised works contracts and works concession contracts

EUR 5,000,000/ £4,348,350

EUR 5,186,000

£4,322,012

 

Utilities Contracts Regulations

Current threshold

Revised EU threshold Applicable from

1 January 2014

Revised UK threshold Applicable from

1 January 2014

Supply and service contracts/design contests

 

EUR 400,000/ £347,868

EUR 414,000

£345,028

Works contracts

 

EUR 5,000,000/£4,348,350

EUR 5,186,000

£4,322,012

 

Defence and Security Public Contracts Regulations

Current threshold

Revised EU threshold Applicable from

1 January 2014

Revised UK threshold Applicable from

1 January 2014

Supply and service contracts

 

EUR 400,000/ £347,868

EUR 414,000

£345,028

Works contracts

 

EUR 5,000,000/ £4,348,350

EUR 5,186,000

£4,322,012

 

Small Lots

Current threshold

Revised EU threshold

Applicable from

1 January 2014

Revised UK threshold Applicable from

1 January 2014

Supply and service contracts

EUR 80,000/ £69,574

No change

£66,672

Works contracts

EUR 1,000,000/ £869,670

No change

£833,400