The thresholds of the contract value determine the procurement process, and the choices that may be made; the rules for these contract values are as follows:
- For a project purchasing goods and or services or works at or above the EU threshold, the European Union Consolidated directive must be followed.
- For a project purchasing goods and or services or works below the EU threshold, the Government’s Procurement Policy must be followed. This may include the publication of a “local tender notice”.
What are the EU Thresholds?
The EU thresholds are financial thresholds used by contracting authorities to determine when a project is captured by the Procurement Directives.
The Procurement Directives specify the thresholds in Euros with the GBP equivalent agreed between the UK Government and the EU Commission every two years in order to account fluctuations in exchange rates. The current agreement started on the 1st January 2016 and will end 31st December 2017.
- Supplies and Services £164,176
- Works £4,104,394
- Social and Other Specific Services £589,148
- Small lots Supplies and services £62,842
- Small lots Works £785,530
European Union Directive
A European Commission Treaty, the basic principles of which are to prevent discrimination against companies from any Member State and to remove restrictions on the free movement of goods and services, cover public procurement.
This Treaty is backed by the EU Consolidated Directive (2014/24/EU), which came into force at the beginning of 2016. Gibraltar adopted the directive through the implementation of Regulations (Procurement (Public Contracts) Regulations 2016), and applies to all contracts above the value shown above. The Directive sets out clear procedures and standards to be followed by the Public Sector when choosing bidders and awarding contracts, based on openness, non-discrimination and competition.
Types of Contract
There are various types of contracts entered into by the Government these can be described as:
- A one-off purchase of a given quantity of a product or service by a specified date;
- A regular requirement over a given period; and
- A framework contract / agreement over a set period with a single or multiple contractors.
The Procurement Process Choice
A - Advertised Contracts
The advertisement should state the latest date by which the invitations to quote / tender should be received. Tender documents are available for download, from this site, and a contract is awarded, based on the scoring of a set of pre-determined criteria, which should be detailed in the documentation provided with the advertisement.
B - Low Value Contracts, which are not advertised
Contracts for goods, services or works with a low value are not required to be advertised under the HM Government Policy. In these cases, soft market testing can be carried out by individual Public Sector bodies to ensure that value for money is being received.