07 February 2022
The Public Contracts (Scotland) Regulations 2015
The table below lists updated contract value thresholds, to be applied by Contracting Authorities when considering, from 1 January 2022 onwards, whether they must comply with the Public Contracts (Scotland) Regulations 2015.
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The way the value of a contract is estimated for the purpose of determining whether that contract meets or exceeds the new threshold values has changed. From 1 January 2022 VAT, where applicable, must form part of the calculation. The standard rate of VAT (currently 20%) should be used to avoid underestimating the contract’s value unless the Contracting Authority is able to demonstrate that a lower (or nil) rate of VAT applies to a contract.
|
Contracting Authorities |
Public Contracts for |
New Threshold (gross 20% VAT) |
Indicative Value (net of VAT) |
|
Central government bodies |
Supplies or Services |
£138,760 |
£115,633 |
|
Other contracting authorities (e.g. registered social landlords, councils) |
Supplies or Services |
£213,477 |
£177,897 |
|
All Contracting Authorities |
Subsidised services contracts |
£213,477 |
£177,897 |
|
Works (including subsidised work contracts) |
£5,336,937 |
£4,447,447 |
|
|
Light touch regime for services – e.g. social services, legal services |
£663,540 |
£552,950 |
|
|
Small lots / Supplies and services |
£70,778 |
£58,982 |
|
|
Small lots / Works |
£884,720 |
£737,267 |
The Procurement Reform (Scotland) Act 2014
The Procurement Reform (Scotland) Act 2014 continues to apply, imposing separate procurement obligations for contracts with values above the following thresholds. The method for calculating the estimated contract value under this Act has not changed and remains exclusive of VAT:
|
Contracting Authorities |
Public Contract for |
Threshold (net of VAT) |
|
All Contracting Authorities |
Supplies or Services |
£50,000 |
|
Works |
£2,000,000 |
If you wish advice on procurement, or on any of the exemptions that apply to the requirement to put over-threshold contracts out to tender, please contact BTO.
For more details on BTO’s Procurement team, please visit: https://www.bto.co.uk/sectors-services/services/procuring-services,-goods-works.aspx
Marion Davis, Senior Associate & Accredited Specialist in Charity Law: mda@bto.co.uk / 0141 221 8012