Reg. 109 (PCR 2015)

Scope of Chapter 8

In: Define > Sourcing strategy

Overview

This regulation provides that, except in limited circumstances, chapter 8 PCR 2015 applies to public procurements conducted by contracting authorities, where Part 2 of the PCR does not apply because the estimated value of the contract is below the thresholds as set out in regulation 5 (threshold amounts).

Regulation 109 states that chapter 8 does not apply to below-threshold procurements where:

  • the procurement would not have been subject to Part 2 PCR (for example, because it met one of the exclusions in regulation 10; specific exclusions for service contracts) even if the value of the public contract being procured was above threshold
  • the public contract is being procured by a central government authority and has a value less than £12,000 (including VAT)
  • the public contract is being procured by a sub-central contracting authority (or an NHS Trust or NHS Foundation Trust) and has a value less than £30,000 (including VAT).

Contracting authorities are prohibited from sub-dividing contracts, where the aim of the subdivision is to prevent Chapter 8 applying (unless justified by objective reasons).

Objective at this commercial stage

Chapter 8 of the PCR will apply to below-threshold procurements, unless the circumstances of the procurement fall into one of the exclusions set out in this regulation (i.e. regulation 109).

Key considerations at this commercial stage

Contracting authorities should:

  • ensure the subject matter and value of any public contracts are reviewed and consideration is given as to whether Chapter 8 will apply.

See also in the Procurement Act 2023:

  • Section 84: Regulated below-threshold contracts

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