Threshold for Central Government Authorities

The threshold for central government authorities is the lowest supplies and services threshold under Directive 2014/24/EU, applying to ministries, government departments, and central agencies purchasing on behalf of the state. Its lower value reflects the international trade obligations of the World Trade Organization Government Procurement Agreement (GPA), which treats central government purchasing as the primary target of cross-border competition rules.

What is the threshold for central government authorities?

Under Directive 2014/24/EU, the European Commission sets separate threshold values for different types of contracting authority. Central government authorities, such as national ministries, revenue bodies, and central agencies listed in Annex I of the directive, must apply the lowest supplies and services threshold. As of the 2024-2025 review period, this threshold stands at 143,000 euros for supplies and services contracts (excluding certain social and other specific services, which have their own higher threshold).

The distinction matters because the GPA binds EU member states to guarantee market access for suppliers from GPA partner countries for central government contracts. This is why central government thresholds are lower: the international obligation kicks in at a lower contract value than for regional or local authorities.

For works contracts, a single higher threshold applies regardless of authority type. See threshold for works contracts for detail.

Why it matters for bidders

If you are targeting national government contracts across Europe, you will encounter this threshold constantly. Any central government supplies or services contract at or above 143,000 euros must be published on TED and run through a full directive-compliant procedure. This means equal access, non-discrimination on grounds of nationality, and a right to debrief on your score.

The estimated contract value used to assess whether the threshold is crossed must be calculated correctly and must exclude VAT, in line with VAT exclusion in threshold calculation rules. Contracting authorities must not split requirements to keep individual contract values below the threshold, as anti-splitting rules explicitly prohibit this.

Example

A German federal ministry estimates that a software licensing contract will cost 180,000 euros over three years. This exceeds the central government threshold of 143,000 euros. The ministry must publish a contract notice on TED, run a compliant procedure (typically open procedure for this value), apply published award criteria, and observe the mandatory standstill period before signing.

Frequently Asked Questions

Which bodies qualify as central government authorities?

Each EU member state maintains a national list (Annex I of the directive). In practice, central government authorities include national ministries, executive agencies, revenue and customs bodies, and similar entities that form part of the central state apparatus. Regional governments, local councils, universities, and publicly-owned utilities are generally not central government authorities for this purpose.

Why is the central government threshold lower than the sub-central threshold?

The lower threshold reflects the EU's GPA commitments. Under the GPA, EU member states agreed to open central government procurement to international competition at a lower value than sub-central procurement. The sub-central threshold is roughly 50 percent higher in most categories, recognising that regional and local authorities operate in more localised markets.

How do threshold changes affect ongoing frameworks?

When thresholds change in a biennial review, contracts and frameworks that were already established under the previous threshold rules continue to operate under those rules for their duration. The new threshold applies to new procurement procedures started after the change takes effect. See threshold review period (biennial) for more on how updates are implemented.