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Thresholds for Contracts in the European Union

The European Union (EU) sets forth thresholds every two years by the European Commission. These thresholds are used to determine whether a contract falls under the scope of the Public Procurement Directives.

Sectors with Specific Rules and Directives

  • Certain sectors, such as defense and security, have specific rules and directives that apply (e.g., Directive 2009/81/EC).
  • The Public Procurement Directives have annexes that provide more detailed information on thresholds and procedures for different types of contracts.
  • Contracts in the water, energy, transport, and postal service sectors are subject to separate directives (Directive 2004/17/EC).

Thresholds

The Court of Justice of the European Union (ECJ) has provided guidance on interpreting the concept of “contract value” when determining whether a contract meets the threshold.

  • The ECJ has ruled that contracting authorities must not split contracts to avoid exceeding the threshold (e.g., Case C-31/87, Beentjes).
  • The correct calculation of contract value includes all costs associated with the performance of the contract, including taxes and duties (e.g., Case C-16/98, Commission/France).

Key Takeaways

  • It is essential to accurately calculate the contract value to determine whether a contract falls under the scope of the Public Procurement Directives.
  • Contracting authorities must not split contracts to avoid exceeding the threshold.

While audit reports and studies related to cooperation with external services for television programs are interesting, they do not directly relate to thresholds for contracts.