PPN 11/23 (PCR 2015)

New thresholds

In: Define > Sourcing strategy

Overview

This PPN applies to all contracting authorities, as defined by the UK regulations. This includes all central government departments, their executive agencies, non-departmental public bodies and other public sector organisations (collectively referred to as ‘in-scope organisations’).

This PPN sets out the thresholds that apply from 1 January 2024 for the purposes of determining the application of the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Contracts Regulations 2016 and the Defence and Security Public Contracts Regulations 2011 to the award of contracts for goods, works and services.

These thresholds, which are set out at Annex A of this PPN (i.e. PPN 11/23), differ depending on the type of contract awarded (whether in relation to goods, works or services) and the applicable procurement legislation. For contracts awarded under PCR 2015, the applicable threshold also differs depending on whether the contract is awarded by central government contracting authorities or sub-central contracting authorities. The thresholds are provided inclusive of VAT.

Objective at this commercial stage

Above-threshold contracts must comply with the substantive requirements of Part 2 PCR 2015.

Key considerations at this commercial stage

In-scope organisations should:

  • determine whether Part 2 PCR 2015 will apply to the contract by reference to the thresholds set out in this PPN (i.e. PPN 11/23)
  • ensure the correct threshold (inclusive of VAT) is identified by reference to the nature of the contract value and applicable procurement legislation.

The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):

  • Regulation 5: Threshold amounts
  • Regulation 5A: Review and amendment of certain thresholds
  • Regulation 6: Methods for calculating the estimated value of procurement

Additional support and guidance

Make sure you:

  • read the PPN and any supporting implementation guidance
  • seek legal and commercial advice in the context of specific procurements
Read the PPN

This applies to