In the European Union, public procurement thresholds define when contracts must be advertised EU-wide, ensuring fairness and transparency. These thresholds are updated biennially to account for economic changes and currency fluctuations.

Current Thresholds:

  1. Construction Contracts: €5,538,000
  2. Supply and Service Contracts:
    • Central Government Authorities: €143,000
    • Other Public Sector Contracting Authorities: €221,000
    • Utilities (e.g., water, energy, transport): €443,000
  3. Social and Other Specific Services:
    • Public Sector Contracting Authorities: €750,000
    • Utilities: €1,000,000
  4. Concessions: €5,538,000

All amounts are net of VAT.

Examples of Application:

  1. Construction of a Public Hospital
    • Estimated Value: €6 million
    • Application: Exceeds €5,538,000 threshold, requiring EU-wide tender.
  2. Procurement of Office Supplies by Central Authority
    • Estimated Value: €150,000
    • Application: Exceeds €143,000 threshold for central authorities, requiring EU-wide advertisement.
  3. IT Support Services for a City Council
    • Estimated Value: €200,000
    • Application: Below €221,000 threshold for local authorities; handled nationally.
  4. Water Treatment Services for a Utility Company
    • Estimated Value: €500,000
    • Application: Exceeds €443,000 utility threshold; EU-wide tender required.

Changes from Previous Thresholds:

  1. Construction Contracts: Increased from €5,382,000 to €5,538,000.
  2. Supply and Service Contracts:
    • Central Government Authorities: Increased from €140,000 to €143,000.
    • Other Public Sector Authorities: Increased from €215,000 to €221,000.
    • Utilities: Increased from €431,000 to €443,000.
  3. Concessions: Increased from €5,382,000 to €5,538,000.

Social and other specific services thresholds remained unchanged.

Key Points:

  • Contracts meeting or exceeding these thresholds must follow EU-wide procurement rules.
  • Contracts below the thresholds may follow national procurement regulations.
  • Proper estimation of contract values is essential to ensure compliance and avoid manipulation to bypass EU rules.