Website of the Department of Health

European Union threshold limits

Question

What are the current European Union Threshold Limits?

Answer

As from 1st January 2004, the financial limits for full European Union Procurement Exercise are as below. It should be remembered that these figures are for the duration of the contract.
Service contracts = £99,695 (€154,014)
Supply contracts = £99,695 (€154,014)
Works contracts = £3,834,411 (€5,923,624)

EU procurement timescales

Question

How long does a full EU procurement exercise take?

Answer

There are set minimum timescales for different elements of a European Procurement Exercise and these timetables can be found in the EU tendering timetable download. The minimum number of days under the Restricted Procedure, assuming a Prior Information Notice (PIN) has not been previously issued, is 77 days, (including weekends and bank holidays) from issue of the initial advert to the date of receipt of the tender documentation.

• European Union Tendering Timetable

EU procedures

Question

Is there anyway to avoid the EU procedures?

Answer

No, although there are certain generic areas of business that fall into Category B, and are therefore outside the full EU time-tabling. Contact PPAU for further advice.

Extending contracts

Question

Can our contract be extended?

Answer

Only if there is provision within the contract for it to be extended.

EU financial thresholds

Question

What are the rules for tendering when the amount falls below the EU financial thresholds?

Answer

When tendering, competition should be entered into to obtain best Value for Money (VFM). To this end the minimum requirements are:
Up to £1000 1 oral/telephone quote.
£1,000 - £3,000 2 oral/telephone quotes.
£3,000 - £5,000 2 written quotes.
£5,000 - £10,000 3 written quotes. £10,000+ 3 or more formal tenders invited.
£50,000+ qualified purchaser must be involved.
£99,000+ EU public procurement threshold (and a qualified purchaser is required).

Exceptions

Question

Is there any justification for approaching one company to fulfil a contract without going out to competition?

Answer

Usually not. Single tender action is, by its very nature, contrary to achieving value for money through open and fair competition. However, there are two exceptional circumstances when single tendering might be justified:
(a) Where the work is directly related to a recently completed contract, and the added value gained from the additional work being given to the same contractor outweighs any potential reduction in price that may be derived through competitive tendering.
(b) The expertise required is only available from one source (this may be due to ownership of exclusive design rights or patents, but the specification should be reviewed to ensure that a substitute product would not be able to meet users' requirements).
Contact PPAU for further advice.

Current tenders

Question

Where can I find details of current tenders?

Answer

Details of DH tenders that have been advertised in the Official Journal of the European Union can be found on this website.

• Tenders

Professional services

Question

Are there any special rules regarding the procurement of professional services?

Answer

When professional services projects are valued at £250,000 (ex VAT) they must be approved at Ministerial level. Additionally, in the rare instances where single tender action is undertaken, Chief Executive / Departmental Board approval is required where the value is over £50,000.

Further advice

Question

Where can I get further advice on procurement matters?

Answer

For further help and advice please contact a member of the PPAU team.