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New procurement thresholds from January 2020


Every two years the threshold value for when contracts become subject to The Public Contracts Regulations are adjusted to take into account exchange rate differences between sterling and the euro. These thresholds have now been revised and the new thresholds will apply to contracts being procured on or after 1 January 2020.

The new thresholds for education institutions are:

Works Contracts £4,733,252
Social and Other Specific Services £663,540
Supply and Service Contracts (sub-central authorities) £189,330

The thresholds are net of VAT as before and apply to the value of the contract throughout its duration (not the annual value) including any possible extensions.

CPC will be updating the guidance on our website and Further Education Library of Procurement to reflect the new thresholds and we recommend our members revise their own Financial Regulations and Procurement Procedures.

Reminder: The Public Contracts Regulations require you to advertise your contract opportunity in the Official Journal of European Union and on Contracts Finder and follow the procedural rules set down in the Regulations before you can award the contract. This is required unless you are using an existing compliant framework agreement such as those provided by CPC.

Please contact your CPC Regional Procurement Advisor for more information on the Regulations.

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