The latest procurement thresholds for 2020/2021 have been released – these thresholds are exclusive of VAT and relate to the full life of the contract.
We have included thresholds for all public contracts below, including defence and security contracts.
What authorities must follow European procurement law?
As the UK will remain a part of the European Union until a Brexit agreement is reached and implemented, public authorities within the country must adhere to the public sector procurement rules that are currently agreed at EU level.
The new thresholds will apply to all public authorities from 1 January 2020 to 31 December 2021 inclusive. If you are supplying into the defence marketplace, it is important that you are aware of these advertising thresholds.
Public contracts
OJEU thresholds indicate at what value a contract for goods, works or services must be advertised.
Public Contracts
| Supply, Services and Design Contracts | Works Contracts | Social and Other Specific Services | |
| Central Government | £122,976 €139,000 |
£4,733,252 €5,350,000 |
£663,540 €750,000 |
| Other Contracting Authorities | £189,330 €214,000 |
£4,733,252 €5,350,000 |
£663,540 €750,000 |
| Small Lots | £70,778 €80,000 |
£884,720 €1,000,000 |
N/A |
Utilities Contracts
| Supply, Services and Design Contracts | Works Contracts | Social and Other Specific Services | |
| Utility Authorities | £378,660 €428,000 |
£4,733,252 €5,350,000 |
£663,540 €750,000 |
Concession Contracts
| Services or Works Contracts | Social and Other Specific Services | |
| All Authorities | £4,733,252 €5,350,000 |
£4,733,252 €5,350,000 |
Defence and Security Contracts
| Supply, Services and Design Contracts | Works Contracts | Social and Other Specific Services | |
| Defence and Security Authorities | £378,660 €428,000 |
£4,733,252 €5,350,000 |
N/A |
How to prepare for procurement in 2020
The defence industry is no different to other sectors in that early engagement can play a critical role in a company’s ambitions to secure business opportunities.
Moving into 2020, it is vital that you have a strategy for early engagement.
Suppliers that practise this at the beginning of the procurement process can properly engage with the defence buying community and are better prepared for future demands.
On the flip side, buyers that engage early with suppliers understand requirements better by speaking directly with industry experts and market leaders.
What is DCI?
Defence Contracts International provides a package of tools for market assessment, pipeline insight and competitor analysis.
We work with innovative start-ups and experienced defence suppliers that have been working with the public sector for many years. Our defence intelligence tools support early engagement and drive defence tendering programmes forward, helping suppliers to win more business.
Win more OJEU contracts
Discover what makes DCI one of the world’s leading contract alert and business intelligence tools. Ask us for a free demo of our DCI Premium package today.
Our expert team can talk you through areas such as:
- How using DCI for early engagement could improve your win rate
- How to use DCI to build your pipeline
- How to size the market and gain competitive advantage
