The European Commission has published the new thresholds for public sector procurement that will come into force on 1 January 2012.
Although the figures at which it is necessary to advertise a contract have risen slightly, they are not significant changes. The thresholds are updated every two years and these new limits will apply until 31 December 2013.
The threshold for supplies and services contracts for those public sector organisations listed here has been increased from £101,323 to £113,057 (€130,000). For other contracting authorities tendering these contracts, the threshold has risen from £156,442 to £173,934 (€200,000).
For works contracts for all public bodies the new limit is £4,348,350 (€5 million), up from £3,927,260. There are also new thresholds for small lots, which are now £69,574 for supplies and services and £869,670 for works deals.
These thresholds are set in sterling and euros and are not subject to currency fluctuations.
The UK government has pressed the EC to raise the threshold values “substantially” as well as introducing a method of linking them so they follow economic factors such as inflation.
Quite what this impact will have on items being “under the radar” has not yet become clear.