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The Procurement Process

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23 January 2025

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:

  1. For a project purchasing goods, services or works at or above the legal thresholds contained in the Procurement Regulations must be followed.
  2. For a project purchasing goods, services or works below the thresholds contained in the Procurement Regulations, the Government’s Procurement Policy must be followed. This may include the publication of a “local tender notice”.

What are the Legal Thresholds?

The legal thresholds are financial thresholds used by contracting authorities to determine when a project is captured by the Procurement Regulations.

HM Government of Gibraltar sets its financial thresholds at the same level as the UK Government (UKGOV).

UKGOV, as a signatory to the United Nations’, World Trade Organisation’s Government Procurement Agreement (GPA), adheres to the financial thresholds specified therein. Save, that these being in USD, are revised every two years to account for currency fluctuations between USD and GBP.

Current Threshold (1 January 2024 to 31 December 2025)

  • Supplies and Services £214,904
  • Works £5,372,609
  • Light Touch Regime Services £663,540
  • Utilities & Defense £429,809
  • Concessions £5,372,609

 

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 tender will be available within HMGOG Supplier Network Portal. The tender may be in the form of a questionnaire with supporting request documents. (e.g. Specifications, T&C’s, etc)

Tender responses from suppliers will be evaluated and scored against the criteria stated by HMGOG (or other Contracting Authority) within the Questionnaire/Request Documents.

Interested parties should note that the Supplier Network Portal may be used to source requirements from other Contracting Authorities falling under the general supervision of HMGOG (e.g. GHA, GEA, etc.)

B - Low Value Contracts, which are not advertised

HMGOG Contracts for goods, services or works with a low value do not require advertising in separate media (Press/Gazette, etc) but may be published in the portal.

Additionally, HMGOG may utilise the portal to conduct soft market testing to ensure that value for money is being received or gather information.

 

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