Procurement in a Nutshell – below threshold procurements
30th January, 2015
In this Procurement in a Nutshell update we will be looking at the changes made in respect of below threshold procurements proposed in the draft Public Contract Regulations.
The draft regulations are available in full on the Cabinet Office website here.
To save you time and to help all practitioners, each week we will issue succinct notes on key proposed changes.
What’s New?
Under regulation 105, procurements that are:
- above £10,000 (central government authorities); or
- above £25,000 (sub-central contracting authorities)
but below the threshold amounts set out at regulation 5 are caught by the new below threshold regime.
The procurement of health care services for the purposes of the NHS (within the meaning and scope of the NHS (Patient Choice and Competition) (No 2) Regulations 2013) are excluded from this regime.
Where the rules on below threshold procurements do apply, Part 4 sets out the requirements (regulations 105-108):
- These procurements must normally be advertised on Contracts Finder (unless the Contracting Authority is a maintained school or academy)
- Certain information must be included in the advertisement and the information has to be available for a sufficient period of time for interested economic operators to become aware of it
- There must not be a pre-qualification stage
- Certain minimum details of any contracts awarded must also be published on Contracts Finder (unless the Contracting Authority is a maintained school or academy)
- The validity of awarded contracts is not affected by failure to comply with below threshold requirements
- Presumably regulation 18 (openness, fairness and transparency) still applies (as caught by general Treaty principles) but it is not currently specifically referred to in this Part
- The remedies set out in the Regulations do not apply
Why is it important?
This below threshold regime applies in the UK only and is the latest in a long line of government initiatives designed to open up public contracts to smaller businesses.
Contracting Authorities will have to design an appropriate process that complies with these regulations.
How can I find out more?
If you have any queries on the issues raised or on any aspect of procurement, please contact us via our procurement hotline on 0191 204 4464.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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