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Procurement Reform - Frameworks & Procurement Threshold Updates

13 December 2023

It's an exciting period of transition between the old and new procurement regimes. Whilst we expect the new Regulations to come into force in Autumn 2024, Cabinet Office are making regular announcements to help us prepare for the changes.

Two recent announcements we'd like to notify you relate to Frameworks and new Procurement Thresholds. Frameworks and Dynamic Purchasing Systems The Government's Commercial function have confirmed that Frameworks and DPS's set up under the old procurement regimes will remain compliant routes to market, even when the Procurement Act 2023 comes into force. This means you are still able to award contracts through our existing frameworks until they expire.

New Procurement Thresholds New Procurement Thresholds will come into force on 1 January 2024. This updates the financial thresholds for the Public Contracts Regulations 2015. The new Regulations increase the current thresholds slightly, and will need to be applied to new contracts from the new year. Please note that thresholds remain inclusive of VAT. The new thresholds applicable to Housing Associations and Local Authorities are -

For Public works contracts the threshold has increased from £5,336,937 to £5,372,609.
For Public supply contracts and public services contracts the threshold has increased from £213,477 to £214,904.

If you’ve any questions or would like to discuss how we can help, please contact our Head of Procurement, Louise Free – louise.free@southeastconsortium.org.uk / 0208 036 0004. Interested in learning more about Procurement Reform? We’re publishing regular news posts on the report along with factsheets for our network. View them here - Latest Updates on UK Procurement Reform - SouthEastConsortium Alternatively, subscribe to our email newsletters here.