It’s a new year which means new procurement thresholds and for the first time these are now being determined by the UK government rather than the EU.
Starting from 1st January 2022 the thresholds for procurements that require a regulated process also contain a massive change that makes the numbers below not quite what they first appear, namely that unlike in previous years when the threshold values were net of VAT, from this year they are now inclusive of VAT so they have in reality gone down year on year.
The distinction between central government bodies and sub-central bodies remains but here there is another major change in that NHS Trusts and Foundation Trusts are now included in the Central list.
The rest of the regulations remain unchanged so determining whether a potential procurement is above or below the threshold still requires consideration of the full contract costs, i.e. for a 3 year contract one must include all three annual charges plus any costs associated with onboarding or exiting the contract if they exist.
The values apply to all procurements starting after 1st January 2022 and are not retrospectively applied to ongoing procurements started before that date.
Threshold values are as follows:
As always, framework procurements remain a cost effective route to meeting the requirements for regulated procurements and we can help guide you through from determining whether this is the right route, what is the most appropriate framework to choose, through to fully managed procurement exercises. Please get in touch if you want to discuss.
