Before you make a purchase on behalf of your institution, are you aware of the regulations that apply to the purchasing process you undertake?
When you are procuring contracts that exceed certain monetary thresholds you must normally advertise the opportunity on the public sector's Find a Tender Service, following procedural rules laid down in the Procurement Act 2023, before awarding a contract. This includes instances when you are awarding an above-threshold contract by calling off a framework, either by mini/further competition or direct award.
The current thresholds (1 January 2026 to 31 December 2027) relevant to educational establishments are: £207,720.00 for goods and services contracts, £5,193,000.00 for the procurement of works contracts and £663,540.00 for the procurement of a specific list of services found in Schedule 1 of the Procurement Regulations 2024. The threshold figures are VAT-inclusive.
These thresholds apply to the value of the contract throughout its duration (not the annual value) including any possible extensions. If you purchase multiple successive contracts of the same type, the threshold applies to the aggregated spend of these contracts over a 48-month/4-year period. If you have a rolling contract with no end date or you can't calculate the total value of a contract, the threshold applies to the aggregated spend on the contract over the same 48-month/4-year term.
What happens if we don't comply with procurement legislation?
Like any system of rules, procurement legislation (whether the new Procurement Act 2023 or the former Public Contracts Regulations 2015) depends upon an effective system of enforcement. Suppliers who perceive that they have been disadvantaged by your institution’s incorrect procurement activity, have a means of redress. Suppliers may be able to raise a claim at the High Court and if you are found to have breached procurement legislation, the Court has the power to impose fines, award damages and set contracts aside, forcing you to re-procure compliantly. Negative publicity could follow and you will be required to pay your own and often the supplier’s legal fees.
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 3.9, 3.10, 3.11