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A B C D E F G H I J K L M N O P R S T V W Y

New Public Procurement Thresholds for 2014

New Public Procurement Thresholds for 2014

Friday 20th December 2013

On 13 December 2013 the European Commission published the new minimum financial thresholds for contracts caught by the application of EU public procurement law. The new thresholds apply from 1 January 2014.

The Public Contracts Regulations 2006 and the Utilities Contracts Regulations 2006 (together the “Regulations”) regulate the procurement activities of “contacting authorities” and “utilities” in England and Wales. “Utilities” include ports, airports and energy providers while “contracting authorities” include governmental bodies, councils and other public bodies such as universities and registered providers. The Regulations implement two EU Directives which set out public procurement law across the European Union.

Every two years the European Commission updates the minimum financial thresholds to which the Directives, and therefore the Regulations, apply. Contracting authorities and utilities must always comply with the general EU Treaty principles of fairness, transparency, equal treatment and proportionality while procuring goods, works or services, however where the value of the contracts for such goods, works or services is above the minimum financial thresholds then the full regime of the Regulations applies. This is often known as an “OJEU procurement” because the Regulations stipulate for the majority of such procurements that a notice advertising the contract must be filed in the Official Journal of the European Union (OJEU).

The European Commission marginally increased the thresholds from 2014. However, as the increase was in Euros, it is important to note that, because a fluctuation in the exchange rate between Sterling and Euros, the new minimum financial thresholds have actually decreased in the UK.

Set out below are the new threshold rates which apply from the 1 January 2014 along with the corresponding current minimum threshold.  

Public Contracts Regulations 2006 

 

Supplies

Services

Works

Central Government bodies

£111,676

(£113,057)

£111,676

(£113,057)

£4,322,012

(£4,348,350)

Other contracting authorities

£172,514

(£173,934)

£172,514

(£173,934)

£4,322,012

(£4,348,350)

Utilities Contracts Regulations 2006

 

Supplies

Services

Works

All Sectors

£345,028

(£347,868)

£345,028

(£347,868)

£4,322,012

(£4,348,350)

It will be disappointing news to those affected by the change that the minimum thresholds have decreased in the UK (albeit minimally). Unfortunately, the long awaited new Procurement Directives (which are due to be adopted in the UK in late 2014/ early 2015) are likely to maintain the thresholds at these new limits.

For more information on any public procurement law issues, please contact Michael Winder on 0151 600 3085 or by email Michael.winder@brabners.com  or a member of the Commercial IP team.

You can follow the Brabners Commercial/IP Team on Twitter: @BrabnersIPCom