New EU procurement thresholds from 1 January 2020: SPPN 8/2019
Policy note to provide advance notice of the new financial threshold values that will apply to public procurement exercises from 1 January 2020.
Please note: this policy note was written at a time when Scottish procurement was subject to the EU legal framework. Some references may no longer be valid, caution should be exercised if you come across one of these references. Content should be cross-referenced with SPPNs which address questions and issues related to exit from the EU legal framework. It should also be read after taking note of the introduction on the SPPN index page.
Purpose
1. The purpose of this Scottish Procurement Policy Note (SPPN) is to provide advance notice of the new financial threshold values that will apply to public procurement exercises run under the Public Contracts (Scotland) Regulations 2015, the Utilities Contracts (Scotland) Regulations 2016, Concession Contracts (Scotland) Regulations 2016 and the Defence and Security Public Contracts Regulations 2011 (“the Procurement Regulations”) with effect from 1 January 2020.
Key point
2. The new threshold values are relevant to all procurement exercises commenced on or after 1 January 2020.
Background
3. These threshold values, which affect procurement exercises which are subject to the procurement regulations, are revalued every two years. Whilst we remain part of the European Union, this revaluation is undertaken by the European Commission, which first revalues in Euros then applies a conversion formula to the revised Euros figure for those member states which have their own national currency.
4. Annex A is a summary of all the changes to threshold values, which reveal an increase over the current values.
5. The thresholds set out in the Procurement Reform (Scotland) Act 2014 have not changed
Action required
6. Public bodies are required to apply the revised threshold values to procurements where the tendering process commences on or after 1 January 2020.
Dissemination
7. Please bring this SPPN to the attention of all relevant staff, including those in Agencies, Non-Departmental Public Bodies and other sponsored public bodies within your area of responsibility.
Annex A – summary of threshold levels from 1 January 2020
The Public Contracts (Scotland) Regulations 2015
Supplies and services (except subsidised services contracts)
Schedule 1 bodies £122,976
Others £189,330
Subsidised services contracts
All bodies £189,330
Works (including subsidised works contracts)
All bodies £4,733,252
Light touch regime for services
All bodies £663,540
Small lots
Supplies and services £70,778
Works £884,720
The Utilities Contracts (Scotland) Regulations 2016
Supplies and services
All sectors £378,660
Works
All sectors £4,733,252
Small lots
Supplies and services £70,778
Works £884,720
The Concession Contracts (Scotland) Regulations 2016
Concession contracts £4,733,252
The Defence and Security Public Contracts Regulations 2011
Supplies and services
All sectors £378,660
Works
All sectors £4,733,252
Small lots
Supplies and Services £70,778
Works £884,720
Contact
Scottish Procurement
The Scottish Government
5 Atlantic Quay
150 Broomielaw
Glasgow
G2 8LU
Email: scottishprocurement@gov.scot
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