NHS FTs and NHS England will need to apply a lower procurement threshold from 16 August 2021

  • 26/07/2021
  • Written by Hempsons

Hempsons have shared the following update with us:

The Public Procurement (Agreement on Government Procurement) (Amendment) (No. 2) Regulations 2021 (the “Amendment Regulations”) have been published. At first glance these Amendment Regulations make a few minor changes to the Public Contracts Regulations 2015 (as well as other associated regulations).

However, of major significance to Foundation Trusts and NHS England is that Schedule 1 to the Public Contracts Regulations 2015 will be replaced by Schedule 1 of the Amendment Regulations. This now means that the following organisations fall within the definition of Central Government Authorities:

  • NHS Business Services Authority
  • NHS Commissioning Board (known as “NHS England”)
  • NHS Trusts
  • NHS Foundation Trusts

This means that from 16 August 2021, NHS England and NHS Foundation Trusts will need to apply the lower financial threshold for the application of the Public Contracts Regulations 2015 to the procurement of services and supplies. The threshold from 16 August 2021 will be £122,976, rather than £189,330.

The flexibilities NHS England and Foundation Trusts currently have as sub-central contracting authorities will also no longer apply from 16 August 2021.

The position is unchanged for NHS Trusts, who were already classified as Central Government Authorities.

Click here for more information from Hempsons.

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