EU Procurement Thresholds 2012 to 2013
This section sets out the European Union (EU) thresholds above which works, supplies and Part A services contracts must be advertised in the Official Journal of the European Union (OJEU). The threshold levels levels are fixed in terms of euros and are set at national currency levels for two year periods. The current period started on 1st January 2012 and lasts until 31st December 2013.
The European Commission sets the value of contracts above which tenders must be published in the Official Journal of the European Union (OJEU) on a two year cycle. The UK legislation for this process is set out in the Public Contracts Regulations 2006. These values are known as the "thresholds" and refer to the total value of the contract. They are NOT annual values. As the central thresholds are set by the European Commission in Brussels using euros, the thresholds in sterling depend, to a considerable extent, on the relative exchange rates of the currencies at the time the thresholds are set. The current phase of the cycle ends on 31st December 2011, therefore new thresholds have been set for the two years from January 2012 to December 2013. The values were set and published during the first week on December 2011.
The threshold may or may not apply to Part B contracts. If the purchasing authority or Government department believes that the contract may attract cross-border interest, that is tenders from companies or organisations in other EU states or in other countries such as the USA, then they are bound by law to publish in the OJEU. Also if a tender for a contract providing a similar service has previously been published in the OJEU, then the tender must be published in the Journal.
Due to the euro:£ exchange rate the threshold figures are considerably higher than we have seen for at least eight years. This may well have the effect of easing competition as more contracts will not be required to be published Europe-wide over the next two years than was previously the case. This is also important for RSLs, as there will be fewer of their smaller contracts which they will not be required to publish in the OJEU.
The values for the period 2012 to 2013 are set out in the downloadable leaflet below.