UK Public Procurement Law Digest: New Threshold Values for 2012 & 2013


From 1 January 2012, the threshold values that trigger the need for a regulated public procurement exercise in the UK and across Europe have been increased.

Commission Regulation (EC) No. 1251/2011 of 30 November 2011 (the “Regulation”) amends the existing European directives that set out the EU public procurement rules and will come into force on 1 January 2012. Utilities-related procurement (governed by Directive 2004/17/EC of 31 March 2004) as well as non-utilities-related procurement (governed by Directive 2004/18/EC of 13 July 2009) will be affected by the change.

Under the EU public procurement rules, all requirements leading to a contract awarded by a public or government body – including utilities – must follow openly advertised tendering and contract award procedures, and comply with principles of transparency, fairness and equality. A number of exceptions exist, among which is that the rules only apply to requirements above a certain financial threshold: i.e., small contracts are not required to follow the same rules.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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