Content
Low Value Requirements Less Than (<) 250K
This page is an extract from the full topic guidance on Low Value Requirements less than 250K [54KB PDF]. It details any Constraints associated with Low Value Requirements, provides a summary of the Authoritative Guidance and lists any essential reading, further reading or associated documents.
If you have any queries on this topic, please contact the Sponsor by email: DES-DePS Bus Comrcl 1 LVP1a.
None.
Low value requirements should always be procured through Service Sources or
extant Enabling Contracts.
Low value requirements valued at 5K or less can be procured by using either the Government Procurement Card (GPC) or paper-based Low Value Purchasing (LVP) Orders. Refer to JSP 332 - Low Value Purchasing Manual
and JSP 462 - Financial Management Policy Manual, Chapters 12 and 29.
Requirements valued between 5K and 250K may be procured utilising Low Value Contracts (LVC). The European Community (EC) Public Procurement Regulations should be considered if a LVC exceeds the relevant threshold
values.
LVCs should not normally be placed without competition unless there are convincing reasons for doing so. The acquisition team must make the decision taking account of the EC Public Procurement Regulations and the nature, risk and number of such requirements that arise.
Competition or No Acceptable Price No Contract (NAPNOC) are the preferred methods of pricing even for smaller value contracts. DEFCON 127 (Price Fixing Condition for Contracts of a Lesser Value) should be used for all non-competitive contracts that are not priced at the outset and are valued at less than 250K.
Resources expended on price evaluation and/or investigation should be proportionate to the risk, value, complexity and nature of the requirement. Before formal Cost Assurance and Analysis Service (CAAS) (formerly known as Cost Assurance Service (CAS)) advice is sought acquisition teams should consult an officer at Band B2 level.
Subject to Assistant Director Commercial (ADC) or Band B1/2 approval the acquisition team may dispense with formal tendering involving the use of Tender Boards.
Associated Docs
Annex A - Template Example Of Low Value Contract [62KB DOC]
Essential Reading
EC Public Procurement Regulations topic
Supplier Selection topic
Tender - Preparation topic
Further Reading
JSP 332 Low Value Purchasing Manual
JSP 462 - Financial Management Policy Manual (Chapters 12 and 29)
JSP 895 - The MOD Simplified Purchasing and Payment Proces
Tender - Assessment topic
Tender - Board topic
Tender - Award and Debrief topic
Pricing - Team Approach topic
Pricing - NAPNOC topic
Pricing - Charging Rates (for list of Commercial Co-ordinating Officers / Contractors)
Pricing - Post Costing topic
DEFFORM 30 Explanatory Notes [30KB PDF]
P2P website (for GFI e-Procurement Using Purchase to Payment (P2P))
