Contracting Authority (UK Definition)

Knowing whether a specific organisation is a contracting authority determines whether its purchases must follow the rules of the Procurement Act 2023. The definition is deliberately broad, capturing the full range of public and publicly funded bodies whose spending of public money should be subject to competitive discipline and transparency requirements.

What is a contracting authority under the Procurement Act 2023?

The Act defines a contracting authority as an entity that meets one of several tests. The primary categories include: a Minister of the Crown or a government department; the Scottish Ministers, Welsh Ministers, or a Northern Ireland department (for reserved matters); a local authority; a body established by statute to perform a public function; and any other body that is publicly funded (in the sense that more than 50% of its activities are financed from public resources) or publicly controlled (in the sense that it is subject to public management supervision or has a management board with more than half its members appointed by a public body).

This definition closely parallels the concept of "body governed by public law" that appears in EU Directive 2014/24/EU, and the accumulated case law from the EU courts on what constitutes a contracting authority remains useful interpretive guidance even after Brexit, though UK courts are not bound by it.

The Act distinguishes between different sub-categories of contracting authority because the applicable thresholds differ. Central government authorities face lower threshold values than sub-central authorities (which include local authorities, NHS bodies, universities, and housing associations). This mirrors the threshold distinction that existed under the EU directives.

Utility activities are subject to a separate utilities regime under the Act rather than the standard contracting authority rules, and defence authority contracts have their own specific provisions.

Why it matters for bidders

Understanding whether your target buyer is a contracting authority tells you which rules apply to their procurement process and what protections you have as a bidder. A contracting authority must follow the Act's procedures for above-threshold contracts, publish notices on Find a Tender, observe the standstill period, and provide assessment summaries. A body that is not a contracting authority has no such obligations, and your remedies if the process is unfair are more limited.

If you are uncertain whether a particular organisation is a contracting authority, reviewing the list of bodies in Schedule 1 of the Act and the definitions in the Act itself is the starting point. The Cabinet Office also publishes guidance on which types of body fall within scope.

Example

A foundation school in England that is privately managed but receives the majority of its funding from public sources through the local authority may qualify as a contracting authority if it meets the public funding or public control tests. In practice, maintained schools and academies are treated as contracting authorities for most procurement purposes, meaning their significant contracts for catering, cleaning, and IT must be competed in accordance with the Act.

Frequently Asked Questions

Are charities that receive public funding contracting authorities?

It depends. A charity that receives more than 50% of its income from public sources and performs a function in the public interest may meet the definition of a contracting authority. This is a facts-and-circumstances analysis, and many third-sector organisations that deliver public services have sought legal advice on their status.

Are private companies that deliver public services contracting authorities?

Private companies are generally not contracting authorities unless they are publicly controlled or meet the public body test. However, private companies delivering public services under contract may be required by the contracting authority to apply procurement rules to their own sub-contracting as a contractual condition.

Does the definition of contracting authority differ between England, Scotland, Wales, and Northern Ireland?

The core definition in the Procurement Act 2023 applies in England, Wales, and Northern Ireland. Scotland has its own procurement regime. The Devolved Welsh Authority category in the Act has specific provisions relating to Welsh procurement policy requirements.