Medium and high-risk purchases over £100,000 

Medium risk and high-risk purchases cover all planned spends of more than £100,000 (one hundred thousand) in total, including possible extension periods and VAT. 

Any spend of between £100,000 (one hundred thousand) is treated as medium or high risk.

All medium and high-risk purchases are managed by the Procurement team. Contact procurement.team@essex.gov.uk and a member of the team will be assigned to work with you.

As well as all spends over £100,000 (one hundred thousand), a low risk purchase (spends under £100,000) may also need to be treated as medium or high risk if certain conditions apply. 

Mandated contracts (pre-approved suppliers)

Mandated contracts are pre-approved suppliers that all employees can use to buy items and services that are frequently needed. 

When you need to buy something, the list of mandated contracts (pre-approved suppliers) must be checked first to see if your need can be met using an existing contract.  

Medium risk purchases 

If the value of the contract is between £100,000 (one hundred thousand) to the current EU threshold £189,300 (one hundred eighty-nine thousand, three hundred), the Procurement team will need to run a simple tender process on your behalf. 

A simplified tender process is required for all medium risk procurements. Where an accurate estimate is not possible of the contract value or where there is a reasonable expectation that the final contract value may exceed £100,000 (one hundred thousand) the simplified tender process must be used. 

If the value and nature of what you are procuring means it is a medium risk procurement, contact procurement.team@essex.gov.uk and you will be a assigned a member of the Procurement team to work with you.

High risk purchases 

A high risk procurement is one that is over one of the current World Trade Organisation (WTO) threshold.

If the value and nature of what you are procuring means it is a high risk procurement, contact procurement.team@essex.gov.uk and you will be assigned a member of the Procurement team to work with you.

Using the procurement thresholds

These new procurement thresholds apply from 1 January 2024.

Use the figures excluding VAT for determining if your requirement is likely to meet the relevant threshold.

There are a limited number of requirements that may be subject to a different VAT amount. Contact the Procurement.Team@essex.gov.uk if this applies to your requirement, or if you have any other queries regarding the thresholds.

This table shows the thresholds including and excluding VAT.
Contract type Threshold including VAT calculated at 20% (must be used by the Procurement Team when publishing Notices)  Threshold excluding VAT (use for internal purposes including governance)
Supplies and Services £214,904 (two hundred fourteen thousand, nine hundred four) £179,086 (one hundred seventy nine, thousand, eighty six)
Works £5,372,609 (five million, three hundred seventy two thousand, six hundred nine) £4,447,175 (four million, four hundred forty seven thousand, one hundred seventy five)
Light Touch Regime £663,540 (six hundred sixty three thousand, five hundred forty) £552,950 (five hundred fifty two thousand, nine hundred fifty)
Concessions £5,372,609 (five million, three hundred seventy two thousand, six hundred nine) £4,447,175 (four million, four hundred forty seven thousand, one hundred seventy five)
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