Public Contracts Regulations 2015: Understanding the Thresholds
The Public Contracts Regulations 2015 set out the rules and regulations for the procurement of public contracts in the UK. These regulations are designed to promote fair competition, transparency, and value for money in public procurements. One important aspect of the regulations is the determination of thresholds, which trigger different rules and procedures for procurement. In this article, we will explore the thresholds for different types of contracts and what they mean for organizations looking to bid for public contracts.
Thresholds for Contracts
The Public Contracts Regulations 2015 set out four different thresholds for different types of contracts. These thresholds are based on the estimated value of the contract and are reviewed every two years. The thresholds for contracts are as follows:
– Works contracts: £4,551,413
– Supplies contracts and services contracts in central government: £122,976
– Services contracts in sub-central contracting authorities (local government, health sector, etc.): £189,330
– Light touch regime contracts: £663,540
These thresholds determine which procurement rules apply to the contract. For example, a contract for works valued below £4,551,413 is subject to different rules than a contract for the same type of works valued above this threshold.
Light Touch Regime Contracts
Light touch regime contracts are a special category of contracts that are subject to different rules. These contracts are typically for social and other specific services and are subject to a less prescriptive regime under the Public Contracts Regulations 2015. The threshold for light touch regime contracts is £663,540.
Consequences of Thresholds
Understanding the thresholds is important for organizations looking to bid for public contracts. If the value of a contract falls below the relevant threshold, the organization may not need to follow the full procurement process set out in the regulations. Instead, they may be able to negotiate directly with the contracting authority.
If the value of the contract exceeds the threshold, the organization must follow the full procurement process set out in the regulations. This may include advertising the contract, inviting bids, and evaluating bids in accordance with the regulations. Failure to follow the correct procurement process can result in disqualification from the tender process or even legal action.
Conclusion
The Public Contracts Regulations 2015 set out the rules and regulations for the procurement of public contracts in the UK. Understanding the thresholds for different types of contracts is important for organizations looking to bid for public contracts. Failure to follow the correct procurement process can result in disqualification from the tender process or even legal action. By understanding the thresholds and following the correct procedures, organizations can increase their chances of success in bidding for public contracts.