On 1st January 2024 public procurement thresholds increased slightly, except for Light Touch regime (remaining the same).
Procurement thresholds determine the rules and procedures that public sector procurement teams must follow when purchasing goods, services and works. The thresholds themselves refer to the maximum estimated value of a contract over its lifecycle and are set to ensure a fair and transparent bidding process.
When the threshold for a contract is exceeded, more rigorous procedures are triggered, often involving public advertising and competitive bidding. This is designed to promote fairness, prevent corruption, and ensure best value for the public purse.
With Brexit well and truly behind us and the dawn of the new Procurement Act – set to go live in October 2024 – now is the time that public sector procurement needs to have unified data, a continuous flow of information, to support decision making, market making and competition.
There is a shift towards supporting domestic suppliers and having contract rules in favour of localism. The evolving landscape poses unique challenges but also opens doors for innovative approaches and strategic partnerships.
Interesting times ahead.