Low-value procurement

Purchases below a buyer’s formal tender threshold, bought by quotes or direct award. A large share of small IT jobs is bought this way, often from firms the buyer already knows.

Also called: Below-threshold, Simplified acquisition

Related terms

Procurement threshold

A contract value above which stricter rules apply, such as open advertising, trade-agreement rules or longer deadlines. Below it, buyers can often invite a few quotes directly.

Direct award

Giving a contract to one supplier without a competition, allowed only in set cases such as low value, urgency or only one possible supplier. Buyers usually must publish why.