Contract Thresholds

The rules a public sector procurement officer must follow vary depending on the type and value of the contract advertised.   

This page is for information only, as the procurement officer will ensure that their tender process meets the required thresholds and will have chosen the correct procurement procedures to follow.

Procurement Reform (Scotland) Act 2014 Thresholds

In Scotland the Procurement Reform (Scotland) Act 2014 has set a contract threshold of £50,000 excluding VAT for goods and services contracts.  This is known as a “regulated procurement”.

This now means that all regulated procurements (of or over £50k in value excluding VAT for goods and services) let by public sector Procurement Officers must be advertised on Public Contracts Scotland.

Non-regulated procurements

Contracts which are worth less than £50k excluding VAT (known as “non-regulated procurements”)  are subject to fewer rules.

Higher Value Procurement Thresholds

The World Trade Organisation has set contract threshold values called the Agreement on Government Procurement (GPA) thresholds which are updated every two years.  When contracts are above the relevant GPA contract threshold values the relevant Regulations apply.   

GPA contract thresholds are also known as ”higher value regulated procurements”.

Higher value regulated procurements must be advertised throughout the UK.  This is done online via the Find a Tender Service (FTS): when a procurement officer uses Public Contracts Scotland to advertise their requirement their Contract Notice is then automatically published on FTS) if it is over the relevant higher value regulated procurement threshold.