Changes to The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021/1221 (the “Regulations”)
The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021/1221 (the “Regulations”) has been laid before Parliament and will come into force on 1 January 2022.
Procurement teams should take note that the new thresholds from 1st January 2022 for goods and services will increase dependent on the contract type and are now inclusive of VAT:
| Contract Type | Current threshold Excluding VAT | New threshold Inclusive of VAT |
|---|---|---|
|
Public Works |
£4,733,252 |
£5,336,937 |
|
Public service and supply awarded by central government authorities, and their design contests |
£122,976 |
£138,760 |
|
Public service and supply awarded by sub-central contracting authorities, and their design contests |
£189,330 |
£213,447 |
This is pivotal as more contracts fall within the scope of The Public Contracts Regulations 2015.
These new rules come into force in just under 2 months therefore Procurement teams should also consider their spend patterns to understand if the changes impact current spending and whether their documentation require updating to take account of these changes.
These changes do not affect any procurement commenced before 1 January 2022.
The new regulations also update certain financial thresholds in the Defence & Security Public Contracts Regulations 2011, the Concession Contracts Regulations2016 and the Utilities Contracts Regulations 2016.
Contracts below threshold are still required to be published on Contracts Finder.
For further information, contact Lindsay Rosul
T: 07702 823 648
E: Lindsay.Rosul@value-match.co.uk
