EU Procurement Thresholds Explained: When TED Applies and When It Doesn't

EU procurement thresholds are the financial dividing line between contracts that must follow the full EU procurement directives, published on TED (Tenders Electronic Daily) and open to cross-border competition, and those governed by national rules. Understanding these thresholds is essential for anyone working in European public procurement.

This guide explains every current threshold, how they work in practice, what happens below the thresholds, and why the below-threshold market matters far more than most suppliers realise.

The Four Directives and Their Thresholds

EU procurement is governed by four main directives, each with its own set of thresholds. All thresholds are net of VAT.

Directive 2014/24/EU, The Classic Directive

This is the workhorse directive covering most public procurement by central government, regional authorities, local authorities, and bodies governed by public law.

Central government refers to entities listed in Annex I of the directive, typically national ministries and equivalent bodies. Sub-central authorities covers everything else: regional governments, municipalities, hospitals, universities, and other contracting authorities not on the Annex I list.

The distinction matters. A national ministry buying IT services worth EUR 150,000 must publish on TED. A municipal council buying identical services at the same price does not, EUR 150,000 is below the EUR 221,000 sub-central threshold.

Directive 2014/25/EU, The Utilities Directive

This directive covers procurement by entities operating in the water, energy, transport, and postal services sectors. These sectors are treated separately because they often involve entities that are not traditional public authorities but operate under special or exclusive rights.

The higher thresholds for utilities reflect the commercial nature of these sectors and the desire to avoid over-regulating entities that operate in competitive or semi-competitive markets.

Directive 2014/23/EU, The Concessions Directive

Concession contracts, where the contractor is paid through the right to exploit the works or services rather than through direct payment, have a single threshold:

Concessions are common in infrastructure, toll roads, waste management, and public transport. The directive introduced EU-wide rules for concessions for the first time, as they were previously largely unregulated at the EU level.

Directive 2009/81/EC, Defence and Security

Defence and security procurement follows its own rules, reflecting the sensitive nature of military and security contracts.

It is worth noting that member states can invoke Article 346 TFEU to exempt defence contracts from EU procurement rules entirely when essential security interests are at stake. In practice, a significant majority of European defence procurement falls outside the directive framework.

How Thresholds Are Calculated

Understanding the rules for calculating contract value is just as important as knowing the thresholds themselves. Several rules prevent contracting authorities from artificially splitting contracts to stay below the thresholds.

The Anti-Splitting Rule

Article 5 of Directive 2014/24/EU prohibits splitting a procurement into separate contracts with the intention of avoiding the directive's application. The estimated value must be calculated based on the total value of the procurement, including all lots, options, and renewals.

For example, if a hospital needs to buy EUR 300,000 of medical equipment in a single budget year, it cannot split this into two contracts of EUR 150,000 each to stay below the central government threshold. The total value is EUR 300,000, which exceeds the EUR 143,000 threshold.

Recurring Contracts

For supplies and services that are recurring or renewable, the estimated value must be calculated based on either:

• The total value of similar contracts awarded in the previous 12 months (adjusted for anticipated changes), or
• The estimated value for the 12 months following the first delivery, or for the full contract term if longer than 12 months

Framework Agreements

For framework agreements, the estimated value is the maximum total value of all contracts envisaged for the entire duration of the framework. This means that a four-year framework agreement for office supplies worth EUR 50,000 per year has an estimated value of EUR 200,000, above the central government threshold even though no individual order would be.

Mixed Contracts

When a contract includes elements that fall under different directives (for example, a contract combining works and services, or a contract with both civilian and defence components), specific rules determine which directive applies. Generally, the directive corresponding to the main subject of the contract takes precedence.

The Two-Year Revision Cycle

EU procurement thresholds are not fixed permanently. They are revised every two years by the European Commission through a delegated regulation, based on the thresholds set in the WTO Government Procurement Agreement (GPA). The GPA thresholds are denominated in Special Drawing Rights (SDRs), and the euro equivalents are recalculated based on exchange rate movements.

The current thresholds took effect on 1 January 2024 and will apply until 31 December 2025. The next revision will take effect on 1 January 2026.

The changes between cycles are typically modest, reflecting exchange rate adjustments rather than policy shifts, but they do affect contracts near the threshold boundaries.

What Happens Below the Thresholds

This is where many suppliers make a critical mistake. They assume that below-threshold procurement is invisible, unregulated, or not worth pursuing. In reality, below-threshold procurement is the majority of the European market by value and is governed by rules, just different rules.

Treaty Principles Still Apply

The Court of Justice of the European Union has established through extensive case law that even below the directive thresholds, the fundamental Treaty principles apply to contracts with "certain cross-border interest." These principles are:

• Non-discrimination: you cannot favour national or local suppliers over those from other member states
• Equal treatment: all potential bidders must be treated equally
• Transparency: there must be adequate publicity to allow potential bidders from other member states to express interest
• Proportionality: requirements must be proportionate to the contract's value and complexity

What constitutes "certain cross-border interest" depends on factors such as the contract's value, its subject matter, and the location of the contracting authority relative to borders. A EUR 100,000 IT services contract in Strasbourg (near the German border) is more likely to have cross-border interest than the same contract in central Spain.

National Rules Vary Enormously

Each member state has its own rules for below-threshold procurement, and the differences are striking.

Germany, Below EU thresholds, procurement is governed by the Unterschwellenvergabeordnung (UVwE) for federal procurement and varying Lander rules. National thresholds typically start at EUR 1,000 (for direct purchases) up to EUR 100,000 (for restricted invitations to tender). The level of formality increases with contract value.

France, The Code de la Commande Publique sets national thresholds. Contracts below EUR 40,000 (excluding VAT) can be awarded without a formal procedure. Between EUR 40,000 and the EU thresholds, contracting authorities must ensure adequate publicity and competition, with the level of formality increasing with value.

Italy, The new Codice dei Contratti Pubblici (Legislative Decree 36/2023) sets national rules. Below EUR 40,000, direct awards are permitted. Between EUR 40,000 and EUR 150,000 for services and supplies, a simplified procedure with at least five invited operators applies.

Netherlands, The Aanbestedingswet 2012 applies below EU thresholds. TenderNed is mandatory for all Dutch public procurement, including below-threshold contracts, making the Netherlands one of the most transparent below-threshold markets in Europe.

Spain, Contracts below EUR 15,000 for supplies and services (or EUR 40,000 for works) are considered "contratos menores" and can be awarded directly. Above these values but below EU thresholds, publication on PLACSP is generally required.

Poland, Below the EU thresholds, the Prawo Zamowien Publicznych (Public Procurement Law) applies. Contracts above PLN 130,000 (approximately EUR 30,000) must be published on the Biuletyn Zamowien Publicznych.

This variation means that a supplier monitoring below-threshold procurement needs to understand the specific rules in each target country, there is no one-size-fits-all approach.

The ESPD: Simplifying Qualification

The European Single Procurement Document (ESPD) is a standardised self-declaration form that simplifies the qualification process for suppliers bidding on above-threshold contracts.

What the ESPD Covers

The ESPD allows suppliers to declare that they:

• Are not subject to any exclusion grounds (such as criminal convictions, fraud, corruption, or tax obligations)
• Meet the selection criteria specified by the contracting authority (such as financial standing, technical capability, and relevant experience)

Instead of providing all supporting documents upfront, bidders submit the ESPD as a preliminary declaration. Only the winning bidder is required to provide the full documentary evidence before contract award.

How the ESPD Works in Practice

1. The contracting authority specifies its requirements in the contract notice and procurement documents
2. The ESPD form is generated (usually through an electronic system) with the specific requirements for that procurement
3. Bidders complete the ESPD, declaring their compliance with exclusion grounds and selection criteria
4. The ESPD is submitted as part of the tender
5. The contracting authority evaluates tenders based on the ESPD declarations (and may request clarification)
6. Only the preferred bidder is asked to provide full supporting documentation

Benefits of the ESPD

• Reduced administrative burden: suppliers do not need to gather extensive documentation for every bid
• Cross-border accessibility: the standardised format is recognised across all member states
• Electronic format: the eESPD can be reused across multiple procurements
• Cost reduction: particularly beneficial for SMEs that might otherwise be deterred by the documentation burden

The ESPD is mandatory for above-threshold procurement under Directive 2014/24/EU. Some member states have extended its use to below-threshold procurement, but this is not universal.

Why Below-Threshold Matters: The Numbers

The financial case for paying attention to below-threshold procurement is compelling.

Below-threshold procurement represents approximately 70% of total EU public procurement by value. By number of contracts, the proportion is even higher, the vast majority of public purchasing transactions fall beneath the EU thresholds.

For suppliers, this means:

• If you only monitor TED, you are seeing less than a third of the market
• Below-threshold tenders typically attract fewer bidders, improving your win rate
• Smaller contracts are often faster to award, meaning shorter sales cycles
• Repeat procurement is common below the thresholds, providing revenue stability
• Winning below-threshold contracts builds track record for larger above-threshold bids

Practical Examples: When Does TED Apply?

Let us work through some real-world scenarios to illustrate how thresholds operate.

Scenario 1: Municipal IT Contract

A German municipal council wants to buy EUR 180,000 of IT services. The council is a sub-central authority, so the threshold is EUR 221,000. This contract does not need to be published on TED. It will appear on the relevant German Lander procurement portal under national rules.

Scenario 2: Ministry Office Supplies Framework

A French national ministry wants to establish a three-year framework agreement for office supplies, estimated at EUR 60,000 per year. Total estimated value: EUR 180,000. As a central government body, the threshold is EUR 143,000. This exceeds the threshold and must be published on TED.

Scenario 3: Regional Hospital Construction

An Italian regional hospital needs to build a new wing, estimated at EUR 4 million. The works threshold is EUR 5,538,000 regardless of the authority type. This does not need to go on TED. It will be published on the relevant Italian regional portal (such as SINTEL for Lombardy).

Scenario 4: Water Utility Equipment

A Spanish water utility wants to procure EUR 400,000 of pump equipment. Under the Utilities Directive, the threshold for supplies is EUR 443,000. This is below the threshold and does not need to be on TED. It will be published on the relevant Spanish platform.

Scenario 5: Defence Uniforms

A Dutch defence ministry wants to procure EUR 500,000 of military uniforms. Under the Defence Directive, the supplies threshold is EUR 443,000. This exceeds the threshold. However, if the contracting authority invokes Article 346 TFEU (arguing that the uniforms involve essential security interests), it may be procured nationally. In practice, non-sensitive items like standard uniforms would normally be published under the directive.

Staying Below the Radar: Common Contracting Authority Practices

Suppliers should be aware that some contracting authorities use practices that effectively keep procurement below the thresholds, whether intentionally or through established habit:

• Splitting contracts by lot below the threshold (though this can breach the anti-splitting rule if done to avoid TED publication)
• Short-term contracts rather than longer frameworks, keeping estimated values lower
• Direct awards for low-value contracts where national rules permit
• Using in-house entities or inter-administrative agreements to avoid external procurement entirely

Understanding these practices helps suppliers identify where opportunities might exist that are not visible through standard portal monitoring.

How Bidovate Helps You Navigate Thresholds

The threshold system creates a practical challenge for suppliers: above-threshold opportunities are centralised on TED, but below-threshold opportunities are scattered across hundreds of national and regional portals. Monitoring both requires either significant manual effort or a technology solution.

Bidovate's tender discovery platform aggregates opportunities from across Europe, both above-threshold and below-threshold, into a single searchable interface. Whether a tender appears on TED, on a German Lander portal, or on an Italian regional platform, Bidovate surfaces it alongside all other relevant opportunities.

If you want to stop missing below-threshold opportunities that never reach TED, book a demo to see how Bidovate can expand your coverage across the full EUR 2.2 trillion European procurement market.

Frequently Asked Questions

What are the current EU procurement thresholds?

For the 2024-2025 period, the main thresholds under Directive 2014/24/EU are: EUR 143,000 for central government supplies and services, EUR 221,000 for sub-central authorities' supplies and services, and EUR 5,538,000 for works contracts. Utilities sector thresholds (Directive 2014/25/EU) are EUR 443,000 for supplies and services and EUR 5,538,000 for works. All values are net of VAT.

How often are EU procurement thresholds revised?

EU procurement thresholds are revised every two years by the European Commission through a delegated regulation. The revision reflects exchange rate movements between the euro and the Special Drawing Rights (SDRs) used in the WTO Government Procurement Agreement. The current thresholds apply from 1 January 2024 to 31 December 2025.

Do EU procurement rules apply below the thresholds?

The full EU procurement directives do not apply below the thresholds, but the fundamental Treaty principles of non-discrimination, equal treatment, transparency, and proportionality still apply to contracts with "certain cross-border interest." Additionally, each member state has its own national procurement rules for below-threshold contracts, which vary significantly from country to country.

What is the ESPD and is it mandatory?

The European Single Procurement Document (ESPD) is a standardised self-declaration form where suppliers confirm they meet exclusion and selection criteria without providing full documentary evidence upfront. Only the winning bidder must supply the actual documents. The ESPD is mandatory for above-threshold procurement under Directive 2014/24/EU. Some member states also use it for below-threshold procurement, but this is not universal.

Why should suppliers care about below-threshold procurement?

Below-threshold procurement represents approximately EUR 1.5 trillion annually, roughly 70% of total EU public procurement by value. These contracts typically attract fewer bidders, have shorter award timescales, and offer recurring business opportunities. For SMEs in particular, below-threshold contracts provide an accessible entry point to the public sector market and a way to build the track record needed for larger above-threshold bids.