Procurement activity in the public sector is governed by European directives which are given effect in the UK Public Contracts Regulations. These regulations open up the public procurement market and ensure the free movement of supplies, services and works within the EU. They also ensure that all potential suppliers have an equal opportunity to bid for contracts.
The House of Lords is a 'contracting authority' as defined by the regulations and, as such, is legally bound to comply with those regulations.
The regulations set out procedures which must be followed when awarding a contract which has a value that exceeds set thresholds. Current thresholds which apply to the House of Lords are:
- £113,057 for supplies and services
- £4,348,350 for works