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.

Also called: Threshold

Related terms

Trade agreement

A treaty that opens public tenders in one country to suppliers from others above set thresholds, such as the WTO Government Procurement Agreement, CETA or CPTPP.

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.