New OJEU Thresholds: 2020
Every 2 years The European Commission reviews and updates the OJEU procurement thresholds, based upon currency fluctuations.
As the UK currently remains within the EU, until a Brexit deal is completed, all UK public sector procurement will be carried out in-line with the new OJEU procurement threshold.
The new OJEU procurement thresholds will be applied from 1st January 2020.
What is OJEU?
OJEU stands for Official Journal of The European Union. It’s an online portal that advertises public sector contracts with a contract value above the procurement threshold.
What is the OJEU procurement threshold?
In short, if the spend over the lifetime of a public sector contract/framework is the same as the threshold, or exceeds it, the contract/framework must, legally, go out to tender. This is known as OJEU compliant route to market.
With the use of OJEU procurement thresholds the EU can support the free movement of supplies, services and work.
The new OJEU Procurement Threshold for 2020/2021
So, as of 1st January 2020, the thresholds will be reset.
| Header | Supply, Service and Design contracts | Works contracts | Social and other specific services | Header |
|---|---|---|---|---|
| Central Government | £122,976 | £4,733,252 | £663,540 | Cell |
| Other Contracting Authorities | £189,330 | £4,733,252 | £663,540 | Cell |
| Small Lots | £70,778 | £884,720 | N/A | Cell |
| Cell | Cell | Cell | Cell | Cell |
*The thresholds are not round figures (as in £4,500,000) as they are based on the historic exchange rate against the Euro. They are also excluding VAT.
It is important to remember that for any contracts ‘below OJEU’ (contracts valued under the OJEU threshold) public sector organisations will have their own internal procurement rules and practices.
For example, Manchester City Council have their own threshold of £30,000. Birmingham City Council's threshold is £25,000.
These lower valued opportunities are typically run through a form of quotation process.
How to find and win OJEU tenders
As mentioned, OJEU advertises the opportunities above the threshold ONLY.
So, how do you find all of the public sector contracts below OJEU too? - Well, we have the answer for that!
Our software, Tender Pipeline, features ALL public sector contracts giving you the opportunity to search for opportunities of varied values. Alongside features such as tender alerts, information of previous tenders, location searches and much more!
If you’d like to secure more public sector contracts, read our how to win public sector tenders guide.
Alternatively, contact our team of experts to discuss your specific needs, from consultancy, training, bid writing support and tender notifications.
If you are looking for advice or have any questions regarding the tendering process, please do not hesitate to get in contact with us!
