Procurement / By / December 17, 2020 / 4 minutes of reading
European council circular table

New OJEU Procurement Thresholds for 2020

December 17, 2020
Procurement

The Government has recently updated the procurement thresholds for public sector procurement processes for 2020. We outline what this means for you and your business.

 

When does this take place?

The updated thresholds for public procurement will affect new procurement processes from 1st January 2020 to 31st December 2020

 

Does Brexit affect this?

Yes and no. From 31st January 2020, the UK will cease to be subject to the EU procurement directives regime. However, at present, the Government has agreed on an 11 month transition period ending 31st December 2020. If this transition period holds until that time, these new EU thresholds will continue to be applied until 2021.

Moreover, the UK Government has already applied the EU Directive (2014/24/EU) around public procurement into UK law. For instance there is the Public Contracts Regulations 2015.

 

What are ‘Procurement Thresholds’?

These thresholds apply to transparent publishing in public purchasing. Tenders and contracts that fall above the new thresholds must be published in the Official Journal of the European Union (OJEU). This is a European wide publication that ensure competition nationally and between European states.

Public sector buyers are bound by these thresholds and need to be aware of them. Government departments, local authorities, NHS trusts, utilities, housing associations and other public and quasi-public bodies. The thresholds cover tenders and contracts let under the following laws:

 

What are the new procurement thresholds?

New Thresholds for 2020
The Public Contracts Regulations 2015
Supplies & Services (not subsidised services contracts)
Central Government bodies (large lots) £122,976
Others (large lots) £189,330
Supplies and services (small lots; all sectors) £70,778
Works (large lots, all bodies) £4,733,252
Works (small lots, all bodies) £884,720
Subsidised services contracts
Subsidised services contracts (all bodies) £189,330
Light touch regime for services (all bodies) £663,540
The Utilities Contracts Regulations 2016
Supplies and Services* (large lots; all sectors) £378,660
Supplies and Services* (small lots; all sectors) £70,778
Works+ (large lots; all sectors) £4,733,252
Works (small lots; all sectors) £884,720
*Unless exempt, subject to light-touch regime, subsidied, research and development services
+Unless subsidised works contract
The Concession Contracts Regulations 2016
Concession contracts £4,733,252
The Defence and Security Public Contracts Regulations 2011
Supplies and Services (large lots; all sectors) £378,660
Supplies and Services (small lots; all sectors) £70,778
Works (large lots; all sectors) £4,733,252
Works (small lots; all sectors) £884,720

 

These new thresholds are net of VAT. With these new figures, the thresholds have slightly risen, possibly owing to differing exchange rates compared to the last threshold renewal.

The source for this is covered in the Government’s Procurement Policy Note 06/19: New Thresholds 2020 and can be found here.

 

The importance of OJEU thresholds

OJEU rules mandate that contract values are calculated based on their whole-life cost. This entails calculating the maximum potential contract value and using that. Where no contract can be put in place, an estimation of value needs to be calculated and used and multiplied by the maximum contract length. This maximum contract length includes any and all possible extensions. The methodology used to calculate ought to be based on past purchases or spend over time in order to properly justify the contract value.

This is in part because contract values calculated on an annual basis can be exploited and used to shield fraud. For example let’s take a larger, £250,000 contract within OJEU threshold. This can be broken down into an annual spend of £50,000 thus putting it below OJEU thresholds for publication. Without the transparency of publication, purchasing managers could and did put out tenders fraudulently.

 

The cost of getting procurement wrong

An incorrect contract value can have a number of implications. First it might force a re-tendering of the contract early because the stated value has already been reached. The time and costs of re-tendering and can put additional strain on public authorities already stretched by other factors.

It can also affect supplier relations with that public sector body and can create negative publicity. In fact, a supplier can challenge the contract on the basis of procedure. This include suppliers outside of the bid and award process. They only need to show that, had they known the value was actually higher, they would have put in a bid.

Proper data publishing with correct contract values, underpinned by transparent methodology is the best defence against this.

 

Where do I find tenders and contracts?

From https://openopps.com. We publish 150,000 tenders from around the world each month. We have local and national tenders, including those not covered by OJEU and Contracts Finder thresholds. Contracts Finder states that any procurement process over £10,000 for central government or £25,000 for local government needs to be published on contracts finder.

 

 

September 29, 2022

£900k Government Fund To Help Charities Win Public Contracts.

The Department for Digital, Culture, Media & Sport (DCMS) is running a Voluntary, Community and Social Enterprise (VCSE) Contract Readiness Fund grant...
Read more...
September 27, 2022

New EU Procurement Instrument Now Law.

About a year ago, we wrote an article on the new procurement instrument approved by the European Union. In recent weeks this...
Read more...
September 20, 2022

Blacklisting Gets Tested.

Back in June we wrote about blacklisting of suppliers and the Government’s intention to prevent poorly performing suppliers from bidding for government...
Read more...
September 8, 2022

UK Risks Its Place On Anti-Corruption Body

The UK has been placed ‘under review’ by the 77-country-strong Open Government Partnership (OGP) due to its failure to meet mandatory criteria...
Read more...
September 8, 2022

Thurrock Exposes Transparency Blind Spot

An investigation by The Bureau of Investigative Journalism (TBIJ) into investments by Thurrock Borough Council has led to the resignation of the...
Read more...
September 6, 2022

New Zealand Government Reviewing Procurement System.

It’s always encouraging when we see governments around the world looking to improve their procurement transparency and efficiency. The New Zealand Government...
Read more...
September 1, 2022

Collecting Data For Sustainable Procurement In Construction

Over the last few weeks we have been looking at setting a sustainable procurement framework in the construction industry, and what kind...
Read more...
August 30, 2022

Selecting Data For Sustainable Procurement In Construction

It is estimated that around 40-50% of natural resources are transformed into construction material, and that as much as 30% of all...
Read more...
August 25, 2022

Setting A Sustainable Procurement Framework For Construction

When procuring construction projects, it can be useful to underpin sustainability criteria on existing policy and regulation. When assessing the enabling framework,...
Read more...
August 18, 2022

Big Net Zero Contract Win For Small Cornish Business

A small Cornish company has purportedly won a £70bn contract to help deliver the country's transition to Net Zero. The Penzance based...
Read more...
August 16, 2022

Supporting Sustainable Procurement In ICT

One of the key challenges of sustainably procuring ICT lies in the lack of transparency in supply chains. To overcome this challenge,...
Read more...
August 11, 2022

Why Is Sustainable Procurement Important For The ICT Sector?

The extraction of raw materials, manufacturing, transportation, use, and disposal of ICT products is associated with a number of environmental, social, and...
Read more...
August 10, 2022

Shifts Towards Sustainable Sourcing

A while ago,  we shared an article on findings by the Boston Consulting Group and the World Economic Forum that showed procurement is responsible...
Read more...
August 9, 2022

Supporting Sustainable Procurement In The Construction Industry

Construction projects are usually long and complex, involving the participation of different stakeholders throughout the different project stages. There are certain factors...
Read more...
August 4, 2022

Why Is Open SPP Important In The Construction Sector?

The construction industry is estimated to account for 6% of global GDP, with Africa's construction market valued at around USD 5.4 billion...
Read more...

Newsletter

Compelling research, insights and data directly into your inbox.

Recent media stories

Drugs gang boss ran children’s home
The Times
May 30, 2022
CIPFA Speaks
CIPFA
August 3, 2021
The Hidden Procurement Challenges Behind The Global Vaccine Rollout
Supply Managment
August 4, 2021

Search

Recent articles

138 thoughts on “New OJEU Procurement Thresholds for 2020”

  1. Pingback: cialis canadian pharmacy

  2. Pingback: canada pharmacies online prescriptions

  3. Pingback: kasheras.livejournal.com283.html

  4. Pingback: https://kwxcva.estranky.cz/clanky/cialis-20-mg.html

  5. Pingback: tadalafil20mg.proweb.cz

  6. Pingback: buy generic cialis

  7. Pingback: buy cheap cialis no prescription

  8. Pingback: buycialisonline.teachable.com

  9. Pingback: https://kalwer.micro.blog/

  10. Pingback: my.desktopnexus.comBuycialisjournalcialis-without-a-doctor-prescription-38780

  11. Pingback: https://www.divephotoguide.com/user/buycialisonline

  12. Pingback: tadalafil20mg.webflow.io

  13. Pingback: https://kswbnh.nethouse.ru/

  14. Pingback: buy cialis online without a prescription

  15. Pingback: linktr.eebuycialisonline

  16. Pingback: telegra.phCialis-20mg-08-13

  17. Pingback: buy cialis usa

  18. Pingback: kwenzx.nethouse.ru

  19. Pingback: dwerks.nethouse.ru

  20. Pingback: canadian pharmacy meds

  21. Pingback: canada drugs

  22. Pingback: discount canadian pharmacies

  23. Pingback: online canadian pharmacies

  24. Pingback: telegra.phRecommended-canadian-pharmacies-08-12

  25. Pingback: https://graph.org/Safe-canadian-online-pharmacies-08-12

  26. Pingback: linktr.eecanadianpharmacies

  27. Pingback: https://buyviagraonlinee.mystrikingly.com/

  28. Pingback: buy viagra online cheap

  29. Pingback: buyviagraonline.flazio.com

  30. Pingback: https://buyviagraonline.fo.team/

  31. Pingback: noyano.wixsite.combuyviagraonline

  32. Pingback: buy viagra pills

  33. Pingback: buyviagraonl.livejournal.com386.html

  34. Pingback: buyviagraonline.nethouse.ru

  35. Pingback: buyviagraonline.estranky.czclankycan-i-buy-viagra-without-prescription.html

  36. Pingback: https://buyviagraonline.proweb.cz/

  37. Pingback: buyviagraonline.zombeek.cz

  38. Pingback: buy viagra pills online

  39. Pingback: buy viagra delhi

  40. Pingback: https://buyviagraonline.teachable.com/

  41. Pingback: buy cheap viagra on line

  42. Pingback: buy viagra cheap

  43. Pingback: buyviagraonline.micro.blog

  44. Pingback: buy cheap viagra no prescription

  45. Pingback: https://www.divephotoguide.com/user/buyviagraonline

  46. Pingback: buy viagra online best price

  47. Pingback: buy viagra pills online

  48. Pingback: buy viagra

  49. Pingback: buy viagra us pharmacy

  50. Pingback: buy generic viagra pills

  51. Pingback: canadianpharmaceuticalsonline.home.blog

  52. Pingback: https://onlineviagra.mystrikingly.com/

  53. Pingback: reallygoodemails.comonlineviagra

  54. Pingback: viagraonline.estranky.skclankyviagra-without-prescription.html

  55. Pingback: buy generic viagra pills

  56. Pingback: buy viagra online

  57. Pingback: buy viagra cheap

  58. Pingback: buy viagra delhi

  59. Pingback: buy viagra with no prescription

  60. Pingback: https://www.kadenze.com/users/canadian-pharmaceuticals-for-usa-sales

  61. Pingback: canadian pharmacy world

  62. Pingback: disqus.comhomeforumcanadian-pharmaceuticals-online

  63. Pingback: canada pharmacies

  64. Pingback: dailygram.comindex.phpblog1155353we-know-quite-a-bit-about-covid-19

  65. Pingback: canadian pharmacy king

  66. Pingback: canadian pharmacies that ship to us

  67. Pingback: https://www.seje.gov.mz/question/canadian-pharmacies-shipping-to-usa/

  68. Pingback: canadian pharmacies

  69. Pingback: challonge.comencanadianpharmaceuticalsonlinetousa

  70. Pingback: pinshape.comusers2441403-canadian-pharmaceuticals-online

  71. Pingback: online canadian pharmacy

  72. Pingback: reallygoodemails.comcanadianpharmaceuticalsonline

  73. Pingback: pinshape.com/users/2441621-canadian-pharmaceutical-companies

  74. Pingback: https://pinshape.com/users/2441621-canadian-pharmaceutical-companies

  75. Pingback: canadian drugs

  76. Pingback: https://pinshape.com/users/2445987-order-stromectol-over-the-counter

  77. Pingback: how much does stromectol cost

  78. Pingback: stromectol generic

  79. Pingback: https://500px.com/p/orderstromectoloverthecounter

  80. Pingback: https://www.seje.gov.mz/question/order-stromectol-over-the-counter-6/

  81. Pingback: https://canadajobscenter.com/author/buystromectol/

  82. Pingback: https://canadajobscenter.com/author/canadianpharmaceuticalsonline/

  83. Pingback: https://aoc.stamford.edu/profile/canadianpharmaceuticalsonline/

  84. Pingback: https://canadianpharmaceuticalsonline.bandcamp.com/releases

  85. Pingback: https://ktqt.ftu.edu.vn/en/question list/canadian-pharmaceuticals-for-usa-sales/

  86. Pingback: online canadian pharmacy

  87. Pingback: buying stromectol

  88. Pingback: https://ktqt.ftu.edu.vn/en/question list/order-stromectol-over-the-counter-10/

  89. Pingback: https://orderstromectoloverthecounter.bandcamp.com/releases

  90. Pingback: buy stromectol

  91. Pingback: www.repairanswers.netquestionorder-stromectol-over-the-counter-2

  92. Pingback: https://www.repairanswers.net/question/stromectol-order-online/

  93. Pingback: https://canadajobscenter.com/author/arpreparof1989/

  94. Pingback: stromectol for head lice

  95. Pingback: https://web904.com/stromectol-buy/

  96. Pingback: web904.combuy-ivermectin-online-fitndance

  97. Pingback: glycvimepedd.bandcamp.comreleases

  98. Pingback: canadajobscenter.comauthorereswasint

  99. Pingback: aoc.stamford.eduprofilehispennbackwin

  100. Pingback: canadian rx world pharmacy

  101. Pingback: https://pinshape.com/users/2461310-canadian-pharmacies-shipping-to-usa

  102. Pingback: https://pinshape.com/users/2462760-order-stromectol-over-the-counter

  103. Pingback: is stromectol safe

  104. Pingback: 500px.compphraspilliti

  105. Pingback: canadian pharmacies without an rx

  106. Pingback: stromectol

  107. Pingback: canadian pharmacies without an rx

  108. Pingback: https://reallygoodemails.com/canadianpharmaceuticalsonlineusa

  109. Pingback: www.provenexpert.comcanadian-pharmaceuticals-online-usa

  110. Pingback: canada drugs online

  111. Pingback: https://melaninterest.com/user/canadian-pharmaceuticals-online/?view=likes

  112. Pingback: haikudeck.comcanadian-pharmaceuticals-online-personal-presentation-827506e003

  113. Pingback: Canadian Pharmacies Shipping to USA

  114. Pingback: experiment.comuserscanadianpharmacy

  115. Pingback: slides.comcanadianpharmaceuticalsonline

  116. Pingback: stromectol coupon

  117. Pingback: challonge.comgotsembpertvil

  118. Pingback: challonge.comcitlitigolf

  119. Pingback: medicaments stromectol

  120. Pingback: soncheebarxu.estranky.czclankystromectol-for-head-lice.html

  121. Pingback: https://lehyriwor.estranky.sk/clanky/stromectol-cream.html

  122. Pingback: stromectol india

  123. Pingback: treating scabies with stromectol

  124. Pingback: www.myscrsdirectory.comprofile4217080

  125. Pingback: supplier.ihrsa.orgprofile4217170

  126. Pingback: https://wefbuyersguide.wef.org/profile/421914/0

  127. Pingback: legalmarketplace.alanet.orgprofile4219200

  128. Pingback: moaamein.nacda.comprofile4220180

  129. Pingback: https://www.audiologysolutionsnetwork.org/profile/422019/0

  130. Pingback: https://network.myscrs.org/profile/422020/0

  131. Pingback: https://sanangelolive.com/members/canadianpharmaceuticalsonlineusa

  132. Pingback: https://sanangelolive.com/members/girsagerea

  133. Pingback: https://www.ecosia.org/search?q="My Canadian Pharmacy - Extensive Assortment of Medications – 2022"

  134. Pingback: www.mojomarketplace.comuserCanadianpharmaceuticalsonline-EkugcJDMYH

  135. Pingback: drugs for sale

  136. Pingback: cialis from canada

  137. Pingback: https://feeds.feedburner.com/bing/Canadian-pharmaceuticals-online

  138. Pingback: https://search.gmx.com/web/result?q="My Canadian Pharmacy - Extensive Assortment of Medications – 2022"

Comments are closed.

Scroll to Top