Supplies Threshold

The monetary value above which public sector contracts for goods must follow full PCR 2015 procedures. Currently £139,688 for central government and £214,904 for other contracting authorities.

How it works

The Supplies Threshold determines when public sector organisations must follow the full competitive tendering procedures under the Public Contracts Regulations 2015 (PCR 2015) when purchasing goods. Contracts valued at or above these thresholds require publication in Find a Tender (the UK's procurement portal) and adherence to formal EU-derived procurement rules.

Two different thresholds apply: - Central government bodies: £139,688 (including departments, executive agencies, and non-departmental public bodies) - Other contracting authorities: £214,904 (including local authorities, NHS trusts, universities, and housing associations)

These figures are updated every two years based on World Trade Organization Government Procurement Agreement exchange rates, with the current thresholds effective from 1 January 2024.

Why it matters

Contracts below the Supplies Threshold still require competitive procurement under each organisation's standing orders and the Public Contracts Regulations, but without the full formal procedures. This includes advertising requirements, minimum timescales, and detailed selection criteria.

Calculating contract value correctly is crucial - this includes the entire potential spend over the contract term, including extensions and variations. Deliberately splitting contracts to avoid thresholds (known as 'disaggregation') is prohibited and can result in legal challenge.

Breaching threshold requirements can lead to procurement challenges, contract suspension, and in severe cases, ineffectiveness declarations that void the entire contract.