What is below threshold procurement?
Below threshold procurement is public buying where the estimated value of the contract falls under the financial thresholds at which the main rules of the Procurement Act 2023 apply. Below threshold contracts are still public spending and still have to be handled fairly, but they follow a lighter set of duties, including limits on screening suppliers for suitability and requirements to publish certain notices.
Below threshold procurement, explained
The Procurement Act 2023 applies its full set of rules to contracts at or above defined financial thresholds. Whether a contract is above or below is judged on its estimated value, worked out before you go to market, and different thresholds apply to different types of contract and different types of authority. The threshold figures sit in the Act and are updated from time to time, so always check the current values before deciding which regime applies.
Below threshold does not mean unregulated, and the Act attaches its duties to two different classes of contract, which is where most of the confusion starts. A regulated below threshold contract is a below threshold contract that is not an exempted contract, a concession contract or a utilities contract. For those contracts a contracting authority must not restrict who may submit a tender by reference to an assessment of supplier suitability, with an exception for below threshold works contracts valued above the relevant goods and services thresholds. That restriction is meant to keep smaller suppliers in the game, and it is not limited to higher value work.
Notifiable is a separate and higher test, and it governs publication rather than supplier screening. A regulated below threshold contract is notifiable where its value is 12,000 pounds or more including VAT for a central government authority, or 30,000 pounds or more including VAT for any other contracting authority. Where a notifiable contract is advertised, a below threshold tender notice must be published on the central digital platform before the opportunity is advertised anywhere else, and a contract details notice follows once the contract has been entered into. There is no requirement to publish a tender notice where an authority simply invites quotes from a closed group of pre-selected suppliers and does not advertise the procurement in any other way.
This is a large part of the market, not a rounding error. In the seven days to 9 August 2026, below threshold notices were 52.5 per cent of the 2,119 UK notices that stated a procedure, according to Find a Tender data analysed in the eSourcingData weekly market report. For suppliers, that means a great deal of winnable public work sits under the thresholds. For buyers, it means below threshold process design deserves real attention rather than being treated as an afterthought.
Key things to know
Judged on estimated value
Whether a contract is below threshold depends on its estimated value, assessed before going to market.
Thresholds change
The figures sit in the Procurement Act 2023 and are updated periodically, so check the current values.
Lighter, not absent, rules
Below threshold contracts follow a reduced set of duties under the Act, but duties still apply.
Limits on supplier screening
For a regulated below threshold contract, who may submit a tender must not be restricted by an assessment of supplier suitability, with an exception for higher value works contracts.
Notices still required
Advertised opportunities need a below threshold tender notice, and outcomes must be published for notifiable contracts.
Over half of stated procedures
Below threshold notices were 52.5 per cent of the 2,119 UK notices that stated a procedure in the week to 9 August 2026.
Explore: What is a contracting authority?, What is an RFQ?, What are conditions of participation?, Weekly UK market report.
How eSourcingData helps
eSourcingData gives lower value spend the same clean, recorded process as major tenders, without the overhead of a full tender for every purchase.
Proportionate process
Run quick, competitive below threshold exercises with a consistent structure and audit trail.
Right notices, right time
Keep track of which notices a below threshold contract needs and when they are due.
Keep it open to SMEs
Design exercises that do not screen out smaller suppliers where the Act restricts suitability assessments.
Visibility of the tail
Bring scattered low value buying into one place so you can see and improve it.
FAQs
What is below threshold procurement?
Below threshold procurement is public buying where the estimated contract value falls under the financial thresholds at which the main rules of the Procurement Act 2023 apply. A lighter set of duties applies instead, covering matters such as how suppliers may be screened and which notices must be published. It is not unregulated buying.
What are the UK procurement thresholds?
The threshold figures are set out in the Procurement Act 2023 and are updated from time to time, with different values for different contract types and for central government authorities compared with other authorities. Because they change, check the current published figures rather than relying on a remembered number.
Do below threshold contracts have to be advertised?
Not every one, but the Act sets publication duties for regulated below threshold contracts. Where an authority advertises the opportunity it must publish a below threshold tender notice, and it must publish the outcome for notifiable contracts, so the spend is visible on the central platform.
Can buyers use a PQQ below threshold?
Generally no. For a regulated below threshold contract, the Act says a contracting authority must not restrict who may submit a tender by reference to an assessment of supplier suitability, with an exception for below threshold works contracts valued above the relevant goods and services thresholds. Note that this restriction turns on the contract being regulated below threshold, not on whether it is notifiable, so it applies well below the 12,000 pound and 30,000 pound publication values. Capability can still be assessed inside the tender.
How much UK public procurement is below threshold?
A large share. In the seven days to 9 August 2026, below threshold notices were 52.5 per cent of the 2,119 UK notices that stated a procedure, based on Find a Tender data analysed in the eSourcingData weekly market report. That is a share of notices stating a procedure in one week, not a share of spending.
Run below threshold spend properly
See how eSourcingData helps UK buyers run proportionate, compliant below threshold exercises under PA23. Book a demo or request a pilot.