Below-Threshold Procurement

Below-threshold procurement refers to any public procurement with an estimated value that falls below the financial thresholds established by Directive 2014/24/EU. While these contracts are not subject to the full procedural requirements of the EU Public Procurement Directives, they must still comply with the fundamental principles of the Treaty on the Functioning of the European Union (TFEU), including transparency, equal treatment, proportionality, and non-discrimination. Below-threshold procurement represents the vast majority of public purchasing activity across Europe, both by volume of contracts and by total number of procedures conducted each year.

How It Works

When a contracting authority identifies a purchasing need, the first step is to calculate the estimated value of the contract in accordance with Article 5 of Directive 2014/24/EU. If this estimated value falls below the applicable EU threshold for the type of contract in question (supplies, services, or works), the procurement is classified as below-threshold.

Each EU Member State establishes its own national procurement rules for below-threshold contracts. These national rules typically define several tiers of procedure based on value. At the lowest values, many countries permit direct purchasing without formal competition. As contract values increase but remain below EU thresholds, national rules generally require some form of competitive process, such as requesting quotes from multiple suppliers or publishing a simplified notice on a national procurement platform.

The practical process for a below-threshold procurement usually follows these steps. First, the contracting authority defines its requirements and estimates the contract value. Second, it determines which national procedural rules apply based on the value band. Third, it conducts the appropriate level of competition, ranging from a simple market consultation to a structured tender procedure. Fourth, it evaluates the responses received and awards the contract. Fifth, it publishes the outcome in accordance with national transparency requirements.

It is important to note that contracting authorities must not artificially split contracts to bring their value below EU thresholds. Article 5(3) of Directive 2014/24/EU explicitly prohibits the subdivision of a procurement with the intention of preventing it from falling within the scope of the Directive. The estimated value must account for the total value of all lots or related purchases over the relevant period.

Below-threshold procurement also includes contracts that have cross-border interest. The European Court of Justice has established through its case law that even below-threshold contracts may require a degree of advertising and transparency if they are likely to attract interest from economic operators in other Member States. This principle was notably affirmed in the Court's ruling in Commission v. Ireland (Case C-507/03) and further elaborated in its interpretive communication on the Community law applicable to contract awards not or not fully subject to the provisions of the Public Procurement Directives.

Legal Framework

Recital 13 of Directive 2014/24/EU explicitly acknowledges that below-threshold contracts remain subject to the fundamental rules and general principles of the TFEU, in particular the free movement of goods (Article 34 TFEU), the right of establishment (Article 49 TFEU), and the freedom to provide services (Article 56 TFEU), as well as the principles of equal treatment, non-discrimination, mutual recognition, proportionality, and transparency derived therefrom.

The Directive itself sets out the current EU thresholds in Article 4, which are revised every two years by the European Commission to reflect currency fluctuations under the WTO GPA. For the 2024-2025 period, the main thresholds are EUR 143,000 for central government supply and service contracts, EUR 221,000 for sub-central government supply and service contracts, and EUR 5,538,000 for works contracts.

At the national level, Member States have implemented a range of approaches. Germany applies its national procurement law (UVgO for supplies and services, VOB/A for works) for contracts below EU thresholds, with simplified procedures and shorter timelines. France requires competitive procedures above EUR 40,000 under the Code de la commande publique, with lighter procedures for smaller amounts. The Netherlands applies the Aanbestedingswet 2012, which establishes national thresholds and procedural requirements for sub-threshold contracts. In many countries, procurements below a very low value (often EUR 5,000 to EUR 15,000) can be conducted through direct purchase without any formal competitive process.

Practical Examples

A municipal government needs to procure office supplies valued at approximately EUR 50,000. Since this falls well below the EU threshold for supplies contracts (EUR 143,000 for central government, EUR 221,000 for sub-central authorities), the municipality follows its national procurement rules. Under the applicable national law, it requests written quotations from at least three suppliers, evaluates the responses based on price and delivery terms, and awards the contract to the most advantageous offer.

A regional hospital requires maintenance services for its HVAC systems, with an annual contract value estimated at EUR 180,000. For a sub-central contracting authority, this falls below the EU services threshold of EUR 221,000. The hospital publishes a notice on the national procurement portal, conducts a simplified competitive procedure under national law, and awards the contract. However, because the value is close to the EU threshold and the service could attract providers from neighbouring countries, the hospital ensures adequate publicity to respect cross-border interest obligations.

A national government agency procures consulting services for a one-time project valued at EUR 120,000. Although this is below the central government threshold of EUR 143,000, the agency follows its internal procurement regulations, which require a competitive procedure with at least five invited tenderers for contracts above EUR 100,000. The procedure is simpler and faster than a full EU open procedure, with shorter deadlines and less formal documentation requirements.

Key Considerations for Suppliers

Suppliers seeking below-threshold opportunities should monitor national procurement platforms rather than relying solely on the EU's Tenders Electronic Daily (TED) platform. Each Member State publishes below-threshold notices on its own national platform, and in some countries, individual contracting authorities maintain their own buyer profiles or procurement portals.

Building direct relationships with contracting authorities is particularly valuable in the below-threshold market. Many lower-value contracts are awarded through invited competitions, where the contracting authority selects which suppliers to invite. Having an established track record and being registered on relevant supplier databases increases the likelihood of receiving invitations.

Suppliers should be aware that below-threshold procedures typically have shorter response times than EU-level procurements. While an open procedure above EU thresholds requires a minimum of 35 days for tender submission, national below-threshold procedures may allow as few as 10 to 15 days. Maintaining up-to-date capability statements and standard tender documentation enables faster responses.

A common mistake is assuming that below-threshold contracts involve less rigorous evaluation. While the procedural requirements may be lighter, contracting authorities are still bound by principles of equal treatment and value for money. Suppliers should prepare thorough, professional proposals even for smaller contracts.

Finally, suppliers should understand the aggregation rules. If a contracting authority regularly purchases the same category of goods or services, the total annual value may exceed EU thresholds, triggering full EU procedures. Monitoring procurement planning notices and buyer profiles can provide early visibility into upcoming opportunities.

EU Threshold - The financial value limits that determine whether a procurement falls above or below the threshold for EU-wide procedures
Threshold - The general concept of financial limits in public procurement that trigger different procedural requirements
Above-Threshold Procurement - Procurements that equal or exceed EU thresholds and must follow the full procedures of Directive 2014/24/EU
Estimated Value - The method for calculating the value of a contract to determine which procurement rules apply
Open Procedure - The standard competitive procedure used for above-threshold contracts that is sometimes voluntarily applied to larger below-threshold procurements

Frequently Asked Questions

Are below-threshold contracts subject to any EU rules at all?

Yes. While below-threshold contracts are not governed by the procedural requirements of Directive 2014/24/EU, they must still comply with the fundamental principles of the TFEU. This includes transparency, equal treatment, non-discrimination, and proportionality. The European Court of Justice has repeatedly confirmed that contracts with potential cross-border interest require a degree of advertising, even when they fall below EU thresholds.

Can a contracting authority split a contract into smaller parts to stay below EU thresholds?

No. Article 5(3) of Directive 2014/24/EU explicitly prohibits the artificial subdivision of procurements to avoid the application of the Directive. The estimated value must reflect the total value of all similar purchases over the relevant period, typically 12 months for recurring supplies and services, or the total value for one-off projects. Deliberate splitting to circumvent thresholds can result in legal challenges and penalties.

Where can suppliers find below-threshold procurement opportunities?

Below-threshold opportunities are typically published on national procurement platforms rather than on TED. For example, suppliers targeting Germany should monitor platforms like the Vergabeplattformen at the federal and state level. In France, the BOAMP and various regional platforms publish sub-threshold notices. Many contracting authorities also maintain buyer profiles on their websites where they announce upcoming procurements, including below-threshold opportunities. To understand how thresholds are calculated, see our guide on how to calculate EU procurement thresholds.

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