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When it comes to public sector procurement, large, above-threshold projects often capture the spotlight. High-value contracts, complex bidding processes, and extensive project scopes can make them seem like the gold standard for suppliers looking to break into or expand in the public sector. However, below-threshold notices are just as crucial - especially if you’re aiming to build your company’s reputation, gather valuable references, and stay alert to emerging opportunities.

Below-threshold projects can open doors to new buyers and help you showcase your strengths to public sector organisations. In this post, we’ll highlight what "below-threshold" actually means, why it’s an essential part of any strategy to supply the public sector, and how Tenderlake can help you make the most of these opportunities.

What Are Procurement Thresholds?

Procurement thresholds set the monetary value at which EU and UK procurement regulations have become more stringent. In the UK, for instance, any public sector contract above certain amounts (these amounts vary depending on the type of contract - goods, services, or works) must follow more formal and transparent procurement processes. In the EU, similar thresholds apply across member states, ensuring a level of standardisation in how high-value public contracts are advertised and awarded. The announcements of above-threshold projects are often referred to as "OJEU notices", because they historically needed to be published in the Official Journal of the EU.

UK Procurement Threshold Examples:
Supplies & Services (Central Gov.): ~£138,760
Supplies & Services (Other Contracting Authorities): ~£213,477
Works: ~£5,336,937

EU Procurement Threshold Examples:
Supplies & Services: ~€215,000
Works: ~€5,382,000

(Exact figures are updated every two years, so always check the latest official thresholds.)

Contracts valued below these amounts won’t necessarily be advertised on top-tier public procurement portals but that doesn’t mean they don’t exist, or that they aren’t valuable.

Why Below-Threshold Notices Matter

1. They’re Often the Starting Point
Many projects, especially those in niche sectors or requiring rapid turnaround, begin below threshold. For organisations looking to break into public sector work, these smaller contracts can be easier to manage and less competitive, making them an excellent first step.

2. Showcase Your Expertise
Below-threshold contracts allow you to demonstrate your company’s capabilities without the heavy administrative burden of larger projects. Successful delivery on a smaller scale can be a stepping stone to more substantial opportunities, giving you a portfolio of real-world references to present to future buyers.

3. Build Your Public Sector Bid “Muscles”
Applying for below-threshold projects helps you refine your bidding process. You’ll learn how to respond effectively to tender requirements, comply with public procurement rules, and handle client communications. This “muscle memory” is invaluable when you decide to go for bigger, above-threshold deals later.

4. Perfect for Subscription and 'As-a-Service' Models
If your business offers research, consulting, analyses, cloud services, software subscriptions, or any ‘as-a-service’ model, below-threshold contracts are often the norm. Public bodies frequently trial or subscribe to services on a smaller scale to test suitability before committing to more extensive contracts.

Monitoring Below-Threshold Notices with Tenderlake

Final Thoughts

Follow Tenderlake on LinkedIn for concise insights on public-sector tenders and emerging procurement signals.