ARTICLE
12 January 2016

New Public Procurement Law Thresholds

M
Matheson

Contributor

Established in 1825 in Dublin, Ireland and with offices in Cork, London, New York, Palo Alto and San Francisco, more than 700 people work across Matheson’s six offices, including 96 partners and tax principals and over 470 legal and tax professionals. Matheson services the legal needs of internationally focused companies and financial institutions doing business in and from Ireland. Our clients include over half of the world’s 50 largest banks, 6 of the world’s 10 largest asset managers, 7 of the top 10 global technology brands and we have advised the majority of the Fortune 100.
The contract value thresholds that determine the scope of EU public procurement law were amended as of 1 January 2016.
Ireland Government, Public Sector

The contract value thresholds that determine the scope of EU public procurement law were amended as of 1 January 2016.

The old thresholds will continue to apply to procurements in Ireland until the new EU Directives, which update EU public procurement law, are transposed into Irish law. The deadline for transposition is 18 April 2016. In October 2015, the Minister for Public Expenditure and Reform, Minister Howlin, stated that he expected that transposition of the new Directives would take place "by April 2016".
 
The new thresholds include very minor increases in value and therefore are unlikely to have the effect of removing contracts from the scope of public procurement law.

We set out below a table summary of the old and new thresholds.

  Old threshold (ex VAT)  New threshold (ex VAT)
Concessions - Directive 2014 / 23 €5,186,000 €5,225,000
Public Sector - Directive 2014 / 24 replacing Directive 2004 / 18
Supply and Services Contracts – Central Government €134,000 €135,000
Supply and Services Contracts – Sub-Central Government €207,000 €209,000
Works Contracts €5,186,000 €5,225,000
Social Services (new 'Part B' services) €750,000 €750,000 (no change)
Utilities - Directive 2014 / 25 replacing Directive 2004 / 17
Supply and Services Contracts €414,000 €418,000
Works Contracts €5,186,000 €5,225,000
Social Services (new 'Part B' services) €1,000,000 €1,000,000 (no change)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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