Below-Threshold Contract

A below-threshold contract is a public procurement in the EU with an estimated value lower than the applicable procurement-threshold, placing it outside the mandatory scope of the EU Procurement Directives. Such contracts are governed by national procurement rules and the general EU Treaty principles of transparency, non-discrimination, and equal treatment.

What is a Below-Threshold Contract?

Below the EU thresholds (approximately EUR 143,000 to EUR 221,000 for goods and services, and EUR 5,538,000 for works, depending on authority type), contracting authorities are not required to publish on ted or follow the directive procedures such as the open-procedure or espd. Instead, each EU member state sets its own rules for how such contracts are awarded. Some member states require advertising on national portals above a domestic threshold well below the EU level; others permit direct award for small purchases. However, all below-threshold procurement must respect the EU Treaty principles of transparency and non-discrimination where there is cross-border interest, particularly for contracts that may attract suppliers from other member states because of their subject matter or geographic proximity.

A number of member states and contracting authorities voluntarily publish below-threshold notices on their national portals or even on TED, creating monitoring opportunities beyond the directive-mandated universe.

Why Below-Threshold Contracts matter for bidders

Below-threshold contracts represent a substantial volume of public spending that is not visible on TED unless voluntarily published. For a supplier targeting a specific member state, monitoring its national procurement portal alongside TED captures the full opportunity set. The lighter procedural requirements for below-threshold contracts mean faster timelines and less documentation, which can suit smaller or more agile suppliers. The trade-off is less legal certainty: because national rules vary significantly, a supplier bidding on a below-threshold contract in an unfamiliar member state faces a different process, different documentation requirements, and different challenge mechanisms than it would under the standardised EU directive framework.

FAQ

Are contracting authorities free to award below-threshold contracts to any supplier they choose?

Not entirely. Even below-threshold, EU Treaty principles require transparency and non-discrimination where there is cross-border interest. Most member states set domestic rules requiring at least some degree of competition above a minimum value.

Can a contracting authority voluntarily publish a below-threshold notice on TED?

Yes. Some authorities and some member states voluntarily publish below-threshold notices on TED for transparency reasons, though they are not required to do so.

Is the light-touch regime the same as below-threshold?

No. The light-touch-regime is a specific, reduced-procedure regime within the EU directives for certain social and other specific services above their own thresholds (approximately EUR 750,000), not a below-threshold category.