Post-Brexit, the UK’s public procurement system underwent a mass transformation, stepping away from the European Union’s (EU) OJEU jurisdiction and towards UK-based “Find a Tender” and continuity of Public Contract Regulations 2015 (PCR 2015). This procurement system will be replaced by the Procurement Act.
But what does this mean for public procurement, and how might it affect Small and Medium Enterprise (SME) suppliers?
What is OJEU?
OJEU stands for the Official Journal of the European Union. It refers to a publication where public sector procurement notices for EU member states are published. The OJEU serves as a central platform for announcing and advertising public procurement opportunities that exceed certain financial thresholds.
The publication is divided into two main sections: the "Tenders" section, which includes contract notices, contract award notices, and periodic indicative notices; and the "Supplement" section, which contains additional information, such as contract modifications or lists of approved suppliers.
Similar to the UK’s PCR and “Find a Tender” processes, the OJEU is an essential part of the EU public procurement process as it aims to ensure transparency, fairness, and equal access to public contracts by allowing companies from EU member states to compete for government contracts. The publication helps to promote competition and prevent favouritism in the public procurement process, mirroring the processes that the UK adopted post-Brexit.
UK Procurement Post-Brexit
Post-Brexit, the UK is no longer a member of the EU and so is not bound by EU regulations, including those related to public procurement. As a result, the UK has implemented its own public procurement system and no longer participates in the OJEU.
In the UK, public procurement is governed by the Public Contracts Regulations 2015 (PCR 2015), which were retained after Brexit. The UK government introduced the “Find a Tender” service as the national platform for publishing public procurement notices in the UK. This platform serves as the counterpart to the OJEU for advertising public sector procurement opportunities in the UK.
UK Procurement Thresholds
The UK procurement thresholds, previously known as OJEU thresholds, are the minimum financial values above which public sector organisations must follow specific procedures when procuring goods, services, or works. These thresholds are set by the UK government and are revised every two years to account for currency fluctuations and ensure compliance with the World Trade Organisation's Agreement on Government Procurement (GPA). The new thresholds came into effect on 1 January 2024.
For suppliers of the public sector, understanding these thresholds is important. Contracts above the relevant threshold must be procured in line with public procurement law, which means they are subject to more stringent rules and procedures. This includes requirements for advertising the contract opportunity, conducting a fair and transparent tender process, and adhering to specific time frames. Suppliers interested in winning high-value public sector contracts must be prepared to navigate these complex procedures and demonstrate their ability to meet the contracting authority's requirements.
On the other hand, contracts below the procurement thresholds are not subject to the same level of regulation. Public sector organisations have more flexibility in how they procure low-value contracts, and they may not always advertise these opportunities. Instead, they may rely on their own procurement rules and established relationships with suppliers. For suppliers, this means that building relationships with public sector buyers and understanding their specific procurement processes can be beneficial to winning low-value contracts. It's important for suppliers to engage with public sector organisations, register on relevant supplier portals, and stay informed about upcoming opportunities, even if they fall below the procurement thresholds.
If you are looking for support and advice around the impact of the procurement thresholds on your organisation contact us today: hello@thorntonandlowe.com / 01204 238046
Summary of UK Procurement Thresholds (effective from 1 January 2024):
| Type of Contract | Central Government (e.g. HMRC) | Other Contracting Authorities (e.g. Local Authorities, Housing Associations) |
|---|---|---|
| Works | £5,602,477 | £5,602,477 |
| Services | £142,033 | £213,477 |
| Supplies | £122,976 | £213,477 |
| Light Touch Regime (Services) | £663,540 | £663,540 |
We don't expect these procurement thresholds to change till January 2026. It is also important to note that these values are the full contract amounts, not annual. Therefore, for example, a housing association spending £60k per annum on services and practically it makes sense to have a contract for 3 to 4 years, for example, this means the contract is high value.
OJEU Thresholds Can Still Apply
While the UK is no longer part of the OJEU, it is worth noting that the OJEU is still relevant for EU member states and other countries participating in EU procurement procedures. UK businesses can still access EU procurement opportunities by monitoring the OJEU if they wish to compete for contracts within the EU market.
For companies looking to the EU for procurement opportunities, the updated 2023 thresholds have been compiled below:
Public Contracts
Contracts relating to public authorities, which includes government departments, local authorities, and healthcare authorities.
| Supply, services and design contracts | Works contracts | Social and other specific services | |
|---|---|---|---|
| Central Government | €140,000 | €5,382,000 | €750,000 |
| Other contracting authorities | €215,000 | €5,382,000 | €750,000 |
| Small lots | €80,000 | €1,000,000 | N/A |
Utilities Contracts
Contracts relating to certain utility companies operating in the energy, water, and transport sectors.
| Supply, services and design contracts | Works contracts | Social and other specific services | |
|---|---|---|---|
| Defence and Security authorities | €431,000 | €5,382,000 | €1,000,000 |
Defence and Security Public Contracts
Contracts relating to entities operating in the fields of defence and security.
| Supply, services and design contracts | Works contracts | Social and other specific services | |
|---|---|---|---|
| Utility authorities | €431,000 | €5,382,000 | N/A |
Concession Contracts
Concessions are contracts for pecuniary interest by means of which one or more contracting authorities, or contracting entities, entrusts the execution of works, or the provision and the management of services, to one or more economic operators.
| Concession Contracts | |
|---|---|
| Authorities | €5,382,000 |
Where to Find OJEU Contracts and Tenders?
Similar to the UK approach of posting all public procurement opportunities on “Find and Tender” and “Contracts Finder”. Wider tender opportunities for across the EU can still be found via TED.
If instead, you are looking for UK-based procurement opportunities, sign up to the free Tender Pipeline database. Updated daily, this collates all upcoming, live and past UK procurement opportunities. Sign up today or talk to our team to make sure you don’t miss out!
