Published
The revised financial thresholds apply to all public procurements by schools, academies, multi-academy trusts, colleges and universities under the Public Contracts Regulations 2015 (PCR 2015) and the Concession Contract Regulations 2016 (CCR 2016).
The PPN sets out a change to the methodology for estimating contract values to be inclusive of VAT for the purposes of applying the thresholds. This does not require a change to the publication of procurement notices.
Contract values should now be calculated inclusive of VAT, which will need to be taken into account when calculating the value of procurement exercises. In effect these changes have reduced the thresholds, capturing more contracts under the regime.
The new financial threshold levels are summarised below.
The Public Contracts Regulations
Supplies & Services (except subsidised services contracts) Central Government bodies £138,760
Others £213,477
Subsidised services contracts All bodies £213,477
Works (including subsidised works contracts) All bodies £5,336,937
Light Touch Regime for Services
All bodies £663,540
Small lots
Supplies and services £70,778
Works £884,720
The Concession Contracts Regulations
Concession contracts £5,336,937
For those of you who wish to view the full PPN, it is available to read here.
For more information and answers to frequently asked questions regarding the new threshold levels, please visit our blog post here.
Should you have any further queries about the new procurement thresholds or would like to find out more, please do not hesitate to contact your CPC Regional Procurement Advisor.