19 February 2016

European Commission passes new thresholds for public procurement

The European Commission has amended the thresholds for when EU procurement law applies for the next two years. If an organisation spends less than the threshold, then EU law does not apply. If they spend more, they must take into account the directive in full. The thresholds came into effect on 1 January 2016 and will remain in place until the end of 2017. The procurement directive is expected to be transposed into the national law of each EU member state by 18 April 2016.

The revised threshold for supply and service contracts awarded by central government authorities is €135,000, a €1,000 increase. For other bodies, such as sub-central contracting authorities, it is €209,000. The threshold of €750,000 for light touch regime contracts remains in place. The works contract threshold stands at €5,225,000, up from €5,186,000.

Changes have also been made to utilities contracts and concession contracts, which are governed under separate EU laws. The rate of €750,000 for public service contracts, such as for health and education, has not been altered.

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