A public procurement threshold is a monetary value that helps determine which procurement rules apply to a planned contract. The relevant threshold depends on the jurisdiction, type of buyer and type of contract. Crossing a threshold can trigger publication, procedure and transparency requirements.
A threshold is not a general spending limit. It is a legal boundary within a particular procurement regime.
Estimated contract value comes first
The buyer normally compares the procurement's estimated value with the relevant threshold before launching the procedure. The calculation should include the total amount payable over the contract, excluding VAT where the applicable rules say so, together with options and renewals that the buyer can reasonably anticipate.
Contracts must not be divided to avoid the rules. When a requirement is split into lots, the applicable regime may depend on the combined estimated value, even when an individual lot falls below the threshold.
Four questions determine the relevant threshold
- 1
Which jurisdiction applies?
National law, treaty commitments and sector-specific rules set different monetary boundaries.
- 2
What kind of buyer is purchasing?
Central government, local authorities, utilities and defence buyers may use different thresholds.
- 3
What type of contract is it?
Supplies, services, social services, works and concessions are commonly treated differently.
- 4
What is the total estimated value?
Include the full term, options, renewals and related lots as required by the applicable calculation rules.
EU thresholds for 2026 and 2027
For procurement governed by Directive 2014/24/EU, the main thresholds in force for 2026 and 2027 are:
| Buyer and contract | EU threshold |
|---|---|
| Central government supplies and most services | €140,000 |
| Sub-central authority supplies and most services | €216,000 |
| Social and other specific services | €750,000 |
| Works contracts | €5,404,000 |
Separate thresholds apply to utilities, defence and security procurement, and concessions. The European Commission publishes the current values and revises them periodically.
These figures determine the application of the harmonised EU rules. National rules still apply below the EU thresholds, and contracts with potential cross-border interest may remain subject to general EU principles such as equal treatment and transparency.
Thresholds vary by country
The phrase "below threshold" only has meaning within a named legal system. A contract below an EU threshold may still require a national competitive procedure. A procurement outside the EU may use entirely different thresholds, currencies and purchasing methods.
Suppliers should therefore avoid using one remembered figure across markets. Check the current rules of the buyer's country and the legal basis stated in the notice.
Why thresholds matter to suppliers
Thresholds influence where and how an opportunity appears. Higher-value contracts may require publication on an international or national portal, longer procedural time limits and formal notices. Lower-value purchases may appear only on a domestic portal, supplier list or buyer website.
The threshold can also affect:
- the procurement procedure available to the buyer;
- minimum time limits;
- review and standstill rules;
- publication of award information; and
- the evidence requested from suppliers.
It does not indicate how difficult the contract will be to deliver. A low-value purchase can still contain demanding security, insurance, licensing or service requirements.
How to read a threshold statement
When a notice says that a procurement is above or below a threshold, verify the legal basis and contract category. Then review the estimated value calculation, especially where the opportunity contains several lots, a long initial term or optional extensions.
For a supplier, the practical question is the procedure stated in the live documents. The threshold explains why that procedure may apply, while the notice sets the instructions for the competition.
