Selling to the Council

Financial Thresholds

The method of procurement followed by the Council will depend upon the size and nature of the contract in question. The minimum number of invitations to tender or quote shall apply to all contracts (including aggregation) as set out below:

Minimum number of invitations to tender or quote
Type of Procurement and total aggregated cost Minimum number of invitations to tender or quote
Works, Supplies and Services - estimated to cost no more than £1,500  No requirement to seek tenders or quotes 
Supplies and Services - estimated to cost more than £1,500 but no more than £5,000  3 oral quotations plus the DLO or DSO 
Supplies and Services - estimated to cost more than £1,500 but no more than £25,000  3 written quotations plus the DLO or DSO 
Works - estimated to cost more than £1,500 but no more than £25,000  3 written quotations plus the DLO or DSO 
Works, Supplies and Services - estimated to cost more than £25,000 but no more than £100,000  5 written quotations plus the DLO or DSO 
Works, Supplies and Services - estimated to cost more than £100,000  6 Tenders plus the DLO or DSO 

These thresholds and the consequent numbers of quotations/tenders to be sought have been set at these levels in order to ensure that the Council obtains value for money but recognising the costs involved by organisations, contractors and providers in compiling tenders and they seek to balance these two key issues.

Thresholds for application of EU procurement regulations

Thresholds for application of EU procurement regulations Above a certain contract value, the Council is obliged to follow European public procurement regulations. The European Union (EU) thresholds for tendering in sterling with effect from 1 January 2012 are currently:

(a) £172, 514 for services and supplies; and
(b) £4, 322, 012 for works.

These thresholds are reviewed by the EU every two years on 1 January and are updated as deemed necessary by the EU. 

The EU defines services as either Part A and B Services. The procurement of Part A and Part B services are treated differently in the Public Contract Regulations 2006 in so far as Part B services need not be advertised on a Europe wide basis although the general EU principles of openness, transparency and equality apply.