Procurement thresholds post 31 December 2020

The new Public Procurement (Amendment etc) (EU Exit) Regulations 2020 are currently working their way through Parliament and due to come into force at 11pm on 31 December 2020, the moment Brexit becomes a legal reality.

They will update the three main procurement regulations that apply in England and Wales (the Public Contracts Regulations 2015, the Concession Contracts Regulations 2016 and the Utilities Contracts Regulations 2016) and replace the previous Brexit procurement statutory instruments which are now out date given the time taken to complete Brexit.  As before, the main purpose of this statutory instrument is to update the procurement regulations to be consistent with the UK’s status as a former EU Member State.

The new regulations preserve the procurement thresholds announced by the European Commission on 31 October 2019 so they continue to apply in England and Wales until 1 January 2022.  The procurement thresholds are important as they set the value of public contracts above which the full legal requirements of the procurement regulations apply.  Below-threshold public contracts are subject to less regulation.

The thresholds under the Public Contracts Regulations 2015 preserved by the new regulations are as follows:

• Public works contracts - £4,733,252
• Public supply contracts and public services contracts (Central Government) - £122,976
• Public supply contracts and public services contracts (Sub-Central Government) -£189,330
• Public service contracts for social and other specific services - £663,540

Relevant thresholds under the Concession Contracts Regulations 2016 and the Utilities Contracts Regulations 2016 will also be preserved.

The next change is not due until 1 January 2022 with the Minister of the Cabinet Office required to lay before Parliament new proposed thresholds by 1 November 2021.