Above-Threshold Contract

The distinction between above-threshold and below-threshold contracts is the most fundamental dividing line in UK public procurement. When a contract's estimated value meets or exceeds the thresholds set under the Procurement Act 2023, the full competitive tendering regime applies and the buyer must follow detailed procedural requirements. Below the threshold, buyers have considerably more flexibility.

What is an above-threshold contract?

An above-threshold contract is one where the estimated value equals or exceeds the financial limits that trigger the mandatory requirements of the Procurement Act 2023. The precise thresholds vary by buyer type and contract category. Central government authorities face lower thresholds than sub-central authorities, and works contracts carry higher thresholds than goods and services contracts. The UK government updates these thresholds periodically to reflect international agreements and economic conditions.

For an above-threshold contract, the covered buyer must publish a tender notice on Find a Tender before the competition opens, follow a recognised procurement procedure (the open procedure or the competitive flexible procedure), apply published award criteria consistently, observe the mandatory standstill period before signing the contract, publish a contract details notice after award, and provide an assessment summary to unsuccessful bidders.

When estimating contract value, buyers must aggregate related contracts and must not artificially split requirements to avoid the threshold.

Why it matters for bidders

Above-threshold contracts are the opportunities where you have the strongest procedural protections. The buyer cannot simply award to a preferred supplier without running a competition. You have the right to an assessment summary explaining how your bid was scored. If the process was conducted improperly, you have legal remedies including the right to seek an automatic suspension of the award during a court challenge. Monitoring Find a Tender for tender notices is the primary way to identify above-threshold opportunities before the submission deadline.

Example

A National Health Service trust in England requires facilities management services with an estimated annual value of GBP 3 million over a four-year term, giving a total estimated value of GBP 12 million. This exceeds the services threshold for sub-central authorities. The trust must publish a tender notice, run a competitive flexible procedure or open procedure, evaluate bids against published criteria, observe the standstill period, and publish a contract details notice once the contract is awarded.

Frequently Asked Questions

How do I find the current threshold values?

The Cabinet Office publishes the current procurement thresholds on GOV.UK. These are updated when the UK reviews its international trade commitments under the Government Procurement Agreement (GPA). The thresholds are set in GBP and apply net of VAT.

What happens if a buyer wrongly treats an above-threshold contract as below-threshold?

The buyer risks a successful legal challenge from an aggrieved supplier. Courts can set aside an improperly awarded contract, award damages to the affected supplier, or issue an ineffectiveness order declaring the contract void. The Act strengthens the remedies available to suppliers in these circumstances.

Can a buyer run an above-threshold competition without publishing on Find a Tender?

No. Publication of a tender notice on Find a Tender is mandatory for above-threshold contracts (with very narrow exceptions for national security). Running a competition without publishing the notice is a breach of the Act.