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