In December2020, the Cabinet Office issued a new Procurement Policy Note PPN11/20 ‘Reserving Below Threshold Procurements’. This is one of the changes we will see in a post-Brexit world where the UK is no longer tied to EU rules.

This PPN and associated guidance covers options that may be considered by In- scope Organisations when procuring contracts for goods, services and works below the following thresholds. These thresholds are provided for in the Regulations and derive from the WTO Agreement on Government Procurement (GPA).

The current thresholds have not changed from 2020 EU levels for central government and are set out in PPN 06/192 – New Thresholds 2020, but, in summary, are: 

  • Supplies & Services – £122,976
  • Works – £4,733,252

If a contract is under these thresholds then the buyer can:

  • Specify that only companies within a certain geographical area can be awarded the contract. Procurers will be able to reserve the procurement by supplier location – this means being able to run a competition and specify that only suppliers located in a geographical area can bid. This could be UK-wide to support domestic supply chains and promote resilience and capacity, or where appropriate, by county (metropolitan or non-metropolitan) to tackle economic inequality and support local recruitment, training, skills and investment. In- scope Organisations should not define by nations of the UK (i.e. England, Scotland, Wales, Northern Ireland) and where a county reservation is to be applied, only a single county may be reserved. Supplier location should be described by reference to where the supplier is based or established and has substantive business operations and not by location of corporate ownership.

and

  • Reserve the procurement for Small and Medium sized Enterprises (SMEs) / Voluntary, Community and Social Enterprises (VCSEs) – this means being able to run a competition and specify that only SMEs and VCSEs can bid.

Post expires at 12:38pm on Monday June 21st, 2021