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Tendering Thresholds Change

As a public body the University has to follow EU Procurement Regulations, these are written into UK law through the Public Contracts Regulations 2015.

 

Above set thresholds the University must legally follow prescribed procurement processes.  On 1 January the thresholds were lowered and the following now apply:

 

Goods and Services

£164,176 (excluding VAT)

Works

£4.1m (excluding VAT)

These thresholds will now be in place until 31st December 2017.

 

Below threshold procurements – what are the rules?

 

Whilst the full set of Public Contracts Regulations 2015 do not apply, we are still bound to purchase in the spirit of the Regulations.  Below the thresholds the University’s Financial Regulations apply.

The University has taken the decision to increase the value at which tenders must be sought, the aim of this was to align with the thresholds in the new Public Contracts Regulations 2015. The thresholds set out in the University’s Financial Regulations are as follows:

 

Threshold (excluding VAT)

Action Required

£0 to £5k

No requirements although it is worth shopping around to ensure value for money.

£5k to £25k

A minimum of three quotes to be obtained, you should get these in writing. This has increased from £20k.

£25k to EU Thresholds

Formal tenders must be sought, the Public Contracts Regulations 2015 do imply some requirements which you should make yourself familiar with. 

EU thresholds and above

We are legally required to follow the Public Contracts Regulations 2015.  Failure to do so can lead to a legal challenge.

Should you require any further details please contact a member of the Purchasing Team on 2728.