Procurement thresholds
Quick reference guide
This table sets out a quick overview of the thresholds and requirements relating to the level of spend being undertaken as follows:
Threshold for Service |
Threshold for Works |
Action Required |
Less than £10,000 |
Less than £10,000 |
Obtain three quotes, evaluate and award contract |
£10,001 to £25,000 |
£10,001 to £25,000 |
Get three written quotes using Quick Call on Delta, evaluate against requirements and award contract. |
£25,001 to £181,302 |
£25,001 to £4,551,413 |
Prepare a specification for the project.
Use Tender Manager on Delta to advertise the contract. Evaluate responses and award the contract. |
£181,302 or greater |
£4,551,413 or greater |
Prepare a detailed specification for the project with your Finance Business Partners and talk to Procurement about timescales and type of tender required. |
Please note that the threshold amount is the total spend over four years or shorter if the duration of the project is less than four years.
Each of these spend categories is now explored in greater detail.
Contracts less than £10,000
- Identify your business needs and draft a brief description of your business requirement.
- Check with the budget holder that there are sufficient funds in the budget for the spend
- Check to see if NHH has an approved supplier that would fulfil this requirement.
- If not identify three suppliers that provide the goods/service you require
- Obtain three quotes via email/post.
- Evaluate the quotes for price and quality of service
- Award the contract
3.3 Contracts £10,001 to £25,000
- Identify your business needs and draft a detailed description of your business requirement including scope of works/ services expected and anticipated costs.
- Get sign off from the budget holder for the project.
- Source your suppliers from your contacts, market leaders, approved suppliers, local companies etc and make a list of those suppliers you want to tender.
- Use the Delta Quick Call to upload your scope of work and manage the tender and set up your list of preferred suppliers on Quick Call. Email your preferred suppliers informing them of the tender going live on Delta and tell them they need to register with Delta to submit a tender.
- Leave time for suppliers to evaluate your scope of work and submit a full tender.
- Assess tender returns against set criteria i.e. Price and quality weighting
- Select preferred supplier and award contract.
3.4 Contracts £25,001 to £181,302
- Identify your business needs and draft a detailed description of your business requirement including scope of works/ services expected and anticipated costs.
- Get sign off from the budget holder for the project.
- Your tender will go out the market and be advertised on Contracts Finder. Source your preferred suppliers from your contacts, market leaders, approved suppliers, local companies etc and make a list of those suppliers you want to tender.
- Use the Delta Tender Manager to upload your scope of work and manage the tender. Set you evaluation criteria and price /quality weighting.
- Email your preferred suppliers informing them of the tender going live on Delta and tell them they need to register with Delta to submit a tender.
- Leave time for suppliers to evaluate your scope of work and submit a full tender (generally a month)
- Assess tender returns against set criteria i.e. Price and quality weighting
- Select preferred supplier and award contract.
3.5 Contracts over £181,302
- Speak to Procurement about doing an OJEU tender.
4.1 Section 20
- Leaseholders need to be consulted about major works and planned repairs where the estimated cost is over £250 per flat. They should also be consulted if we want to enter into a long term agreement (more than 12 months) if the annual cost per leaseholder is over £100 in any one year. The consultation takes place in three stages and takes 60 days which needs to be built into the tender process.
Exceptions
Dispensation from competition
Procurement procedures are applicable unless a dispensation has been granted.
This will only be granted when justified reasons are given and approval from Director of Finance has been granted prior to any commitment to purchase is made.
Non-exhaustive examples of when a dispensation might be appropriate include: