Below-Threshold Contract

Below-threshold contracts occupy an important but often overlooked segment of UK public procurement. Because their value falls below the financial limits that trigger the full Procurement Act 2023 regime, they attract lighter procedural requirements. For many small and medium-sized suppliers, below-threshold contracts represent the most accessible entry point into public sector work.

What is a below-threshold contract?

A below-threshold contract is one whose estimated value is less than the applicable financial threshold for the buyer type and contract category in question. Below the threshold, buyers are not obliged to publish a tender notice on Find a Tender, run a prescribed competitive procedure, or observe the mandatory standstill period before signing.

However, below-threshold contracts are not entirely unregulated under the Procurement Act 2023. The Act introduces new obligations for below-threshold procurement, including a requirement to publish contract award information on Contracts Finder for contracts above a lower "Contracts Finder threshold" (currently GBP 10,000 for central government and GBP 25,000 for other public bodies). Buyers must also observe the general duty to act in accordance with the procurement objectives even for below-threshold awards, and they must not award below-threshold contracts in a manner that is discriminatory or contrary to the principles of transparency and equal treatment.

The Act also introduced specific below-threshold procedures that buyers may adopt voluntarily, including a new competitive and proportionate tendering process designed to be less burdensome than the above-threshold procedures while still delivering good value.

Why it matters for bidders

Below-threshold contracts can be awarded with much faster timescales than above-threshold competitions, and the buyer has discretion over how they run the process. This means opportunities may not always appear on public portals before a decision is made. However, the requirement to publish award notices on Contracts Finder creates a useful market intelligence trail: by monitoring awards in your sector, you can identify which public bodies are active buyers, understand typical contract sizes and durations, and position yourself for future opportunities.

Unlike above-threshold competitions, you have no automatic legal right to an assessment summary or to challenge the award through the Act's formal remedies. You may still raise a complaint with the contracting authority or, in some cases, seek judicial review, but the grounds and remedies are more limited.

Example

A district council requires landscaping services with an estimated annual value of GBP 40,000 over two years (GBP 80,000 total). This is below the services threshold for sub-central authorities. The council may invite three suppliers to quote without publishing a public notice, award on the basis of the most competitive quote, and then publish the contract award on Contracts Finder within the required timeframe.

Frequently Asked Questions

Are below-threshold contracts always awarded without competition?

No. Many contracting authorities run competitive processes for below-threshold contracts as a matter of policy, to obtain best value and to demonstrate accountability. The distinction is that they are not legally required to follow the prescribed above-threshold procedures.

Do below-threshold contracts still appear on public platforms?

Award notices for contracts above the Contracts Finder thresholds (GBP 10,000 for central government, GBP 25,000 for others) must be published on Contracts Finder. Prior market engagement notices and pipeline notices may also appear for larger below-threshold contracts.

Can a supplier challenge a below-threshold award?

The full remedy regime under the Act does not apply below threshold. A supplier may complain to the contracting authority, raise concerns with the relevant ombudsman, or in limited circumstances seek judicial review if the decision was procedurally improper.