When the value of a contract exceeds a set amount, we are obliged to meet and follow various legislation and regulations when procuring goods and services. Use this page to understand what these regulations mean and when they apply.
The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020
What the regulations mean
For contracts over a certain value, we must comply with The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020. The underlying principles of the Regulations are transparency, fairness, and open competition.
By adhering to these national regulations, it ensures that high value, high risk procurement achieves the following:
- We ensure that contract opportunities are advertised centrally and fairly
- Our intentions are transparent
- We pay particular attention to equality and social value on larger, impactful contracts
- We ensure that the contract is open to national competition
When the regulations apply
When tendering and awarding contracts for goods, works or services, if the contract exceeds a stated financial threshold, the requirements of the Public Procurement Directives must be met.
When a contract value exceeds a set amount, we are required to advertise the contracts nationally on Find a Tender. This set amount varies depending on the type of contract in question.
We will advertise contracts of different types when they exceed the following values:
| Type of contract | Value (if inclusive of VAT) | Value (without VAT) |
|---|---|---|
| Works and concession | £5,336,937 | £4,447,448 |
| Supplies and/or services for Local Government | £213,447 | £177,898 |
| Social and care services | £663,540 | £552,650 |
For example, a supplies or service contract with a three-year term and an annual value of £65,000 would be worth £195,000. It would be subject to tendering regulations because it is above the stated value of £177,898.
Some services are exempt from the full advertising regime. These services must still comply with the rules of transparency, non-discrimination and must allow sufficient time for completion.
Public Services (Social Value) Act 2012
The Social Value Act requires authorities to consider how a contract can contribute to the social and environmental wellbeing of a relevant area.
In practice, this means that when we go to tender, we consider how that service or product could make Bath and North East Somerset better. For example, a particular service might be able to offer apprenticeships during the term of the contract.
We consider the Social Value of all of our contracts, regardless of their value.
However when a contract is valued above the financial threshold, we must evaluate its Social Value. This means that it must be included as one of the criteria that we score organisations on when we are evaluating supplier applications.