Threshold for Social and Specific Services

EU procurement law has long recognised that social, health, and educational services have characteristics that make them difficult to procure through rigid competitive procedures. The threshold for social and specific services reflects this: it is set much higher than standard services thresholds, and the procedural rules above that threshold are lighter in nature, requiring transparency and non-discrimination but allowing considerable flexibility in how the process is run.

What is the threshold for social and specific services?

Under Directive 2014/24/EU, contracts for services listed in Annex XIV are subject to a special regime. Annex XIV covers social services, health services, educational services, hotel and restaurant services, legal services (some categories), certain administrative services, and a range of other services that have traditionally been treated differently from standard commercial services. The threshold for these services is 750,000 euros, which is substantially higher than the standard central government threshold of 143,000 euros and the sub-central threshold of 221,000 euros.

Above 750,000 euros, contracting authorities must publish a contract notice or a prior information notice and must award contracts following a transparent and non-discriminatory procedure. However, the directive gives member states and contracting authorities considerable freedom in designing the specific steps of that procedure, making this a "light touch" regime rather than a full-weight one.

For utilities authorities under Directive 2014/25/EU, the equivalent light-touch threshold for social and other specific services is 1,000,000 euros.

Why it matters for bidders

If you operate in healthcare, social care, education, community services, or related fields, this threshold is directly relevant. Many social service contracts run to millions of euros and therefore fall above the 750,000-euro mark. Above that threshold, you have the right to expect a published notice and a fair process, even if the procedural steps are less prescriptive than in a standard open procedure.

The lighter-touch regime means that contracting authorities have more discretion in how they structure the competition. They may use negotiation, dialogue, or other forms of engagement that would require specific justification under the standard rules. As a bidder, understanding this flexibility helps you engage more constructively with buyers at the pre-market stage.

The same VAT exclusion in threshold calculation rules apply: the 750,000-euro figure is measured ex-VAT. Estimated contract value must be calculated honestly and cannot be reduced by artificial splitting.

Example

A French regional authority wishes to commission residential social care services worth approximately 900,000 euros per year over a three-year contract (total estimated value 2.7 million euros). Because health and social care falls under Annex XIV and the total value exceeds 750,000 euros, the authority must publish a notice in OJEU and run a transparent, non-discriminatory process. It chooses to run a two-stage competitive process: an expression of interest stage followed by an invitation to submit detailed proposals, a procedure it could not easily use for a standard services contract without specific justification.

Frequently Asked Questions

Does the light-touch regime mean there are no rules at all below 750,000 euros for these services?

No. Below 750,000 euros, the directive does not impose specific procedural obligations, but national law and general EU Treaty principles still apply. Most member states have national rules for below-threshold social service procurement, and in any case general principles of equal treatment, transparency, and non-discrimination under the Treaty on the Functioning of the European Union (TFEU) apply to all public procurement with cross-border interest.

Are legal services always covered by the light-touch regime?

Only certain categories of legal services are listed in Annex XIV. Legal representation in court proceedings, legal advice linked to such proceedings, and arbitration and mediation services are among those covered. Standard commercial legal advisory services are typically subject to normal services thresholds and procedures.

Can contracting authorities use the light-touch regime for any service they prefer?

No. The light-touch regime is available only for services specifically listed in Annex XIV of Directive 2014/24/EU. Authorities cannot simply designate a standard commercial service as a social service to take advantage of the higher threshold and lighter procedures.