A minor adjustment in procurement law to end 2022 – with major changes due next year.

Amendments have been made to Chapter 8 (the rules applicable to below threshold value contracts) of the Public Contracts Regulations 2015 (the “PCR”) to the minimum value of contracts to which these rules apply (for example the publication of opportunities and awards on Contracts Finder). The Chapter 8 rules now apply where a contract is less than the applicable PCR threshold and equal to or more than:

• where the contracting authority is a central government authority: an estimated value net of VAT of £12,000 (this was previously £10,000 net of VAT)
• where the contracting authority is a sub-central contracting authority or an NHS Trust: an estimated value net of VAT of £30,000 (this was previously £25,000 net of VAT)
• NHS Foundations Trusts are now to be treated in the same way as NHS Trusts

The Amendment Regulations are aimed at reducing burdens on contracting authorities by increasing the value of contracts which trigger these publication obligations. The amendment regulations reverse the effect for such contracts of the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021) (“GPA Threshold Regs”), which provided that the previous threshold amounts were inclusive of VAT (where previously they had been exclusive of VAT).

The Public Contracts (Amendment) Regulations 2022 effectively reinstate the value of the thresholds for publication on Contracts Finder that applied before the GPA Threshold Regs.

No other thresholds are affected by the Public Contracts (Amendment) Regulations 2022.

The clarification that the regime is identical for NHS Foundation Trusts and for NHS Trusts is helpful practically.

Please contact us via the links below should you wish to discuss how we can assist you and your team, and find out more about our procurement team here.