Reg. 6 (PCR 2015)

Methods for calculating the estimated value of procurement

In: Procure > Contract award and implementation

Overview

General rules:

This regulation establishes general rules for determining the estimated value of procurement contracts, which must include all payable amounts including VAT as estimated by the contracting authority.

Subdividing a procurement with the effect of preventing it from falling within the scope of Part 2 of the PCR 2015 is not permitted unless there are objective justifications.

The estimated value of a procurement should be calculated either when the call for competition is submitted or when the procurement procedure begins.

The regulation also clarifies how the value of specific types of contracts must be determined.

Treatment of lots:

When contracts may be awarded in separate lots, the total estimated value of all lots should be used as the estimated total contract value. However, contracting authorities may award contracts for individual lots if the value of the lot falls below certain thresholds.

Objective at this commercial stage

The value of the contract to be procured needs to be determined according to this regulation (i.e. regulation 6) because above-threshold contracts must comply with Part 2 PCR, in particular with respect to the provision of standstill letters and publication of contract award notices.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure the value of the contract, according to this regulation, is determined and whether Part 2 PCR applies
  • ensure the provisions in Part 2 PCR regarding standstill letters and the publication of contract award notices are complied with.

See also in the Procurement Act 2023:

  • Section 4: Valuation of contracts
  • Schedule 3: Estimating the value of a contract

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements
Read the regulation

This applies to