What was the Public Contracts Regulations Act of 2015?
The Public Contracts Regulations 2015 (PCR 2015) set out how UK public bodies bought goods, works, and services from the private sector. Derived from EU Directive 2014/24/EU, the regulations aimed to promote transparency and value for money in public procurement.
For procurement officers, contract managers, and suppliers, PCR 2015 was a critical framework.
It defined when contracts had to be advertised on Find a Tender, the procurement thresholds that applied, and the procedures contracting authorities were required to follow.
While the Procurement Act 2023 has replaced PCR 2015 for new procurements, procurements launched before 24 February 2025 continue to fall under the rules of PCR 2015.
Understanding how PCR 2015 operated and how it links to the new regulations remains key for managing in-flight procurements during the transition.
Background and Legislative Context of the Public Contracts Regulations 2015
The Public Contracts Regulations 2015 (PCR 2015) implemented the EU Procurement Directive 2014/24/EU in the UK, creating a unified set of rules for public sector procurement. They replaced earlier regulations, such as the Public Contracts Regulations 2009, aiming to make procurement more transparent and competitive.
Before PCR 2015, the UK followed several overlapping rules based on older EU Directives.
In 2014, the European Union modernised its procurement system to improve efficiency for SMEs (Small and Medium-sized Enterprises) and open competition for public contracts. This reform led to Directive 2014/24/EU, which the UK adopted through PCR 2015.
Understanding the wider public sector procurement process helps explain why PCR 2015 introduced clearer procurement thresholds and advertising duties, especially for high-value contracts published on Find a Tender.
The regulations came into force on 26 February 2015 in England, Wales, and Northern Ireland, while Scotland introduced the Public Contracts (Scotland) Regulations 2015.
Key innovations under PCR 2015 include:
- Self-cleaning provisions allowing suppliers with past convictions to demonstrate corrective actions
- New procedures, such as the Innovation Partnership
- Mandatory e-procurement for tender submissions
- Use of the European Single Procurement Document (ESPD) to simplify supplier selection
- A 30-day payment rule for subcontractors.
Post-Brexit Developments
After the UK’s exit from the EU, PCR 2015 was retained in domestic law to maintain continuity. It still applies to procurements launched before the new regime takes effect.
The Procurement Act 2023 replaced PCR 2015 and related regulations, consolidating procurement into a single framework focused on simpler processes and stronger supplier engagement. Procurements initiated on or after 24 February 2025 must follow the new framework.
Scope of the Public Contracts Regulations 2015
The Public Contracts Regulations 2015 applied to organisations that are financed, supervised, or controlled by the state or other public bodies. This includes:
- Central government departments
- Local authorities
- Healthcare bodies
- Educational institutions
- Publicly owned companies
A critical test is whether an organisation serves the public interest rather than operating commercially. Even if it’s legally independent, if it receives public funding or operates under state control, it still qualifies as a contracting authority.
Exemptions and Special Cases
Some procurements fall outside PCR 2015, such as:
- Contracts related to defence and national security, which are covered by separate regulations
- In-house awards (Teckal exemption), where an authority controls the supplier as if it were an internal department
- Collaborative arrangements between public bodies where the purpose is joint service delivery, not market competition
- Certain land transactions, employment contracts, and public-private partnerships, depending on structure and funding
Misclassifying an arrangement as “non-regulated” often lead to legal challenges and procurement delays. For suppliers, knowing when the rules apply helps identify tender opportunities, advertising routes, and threshold triggers on platforms like Find a Tender or Contracts Finder.
Key Threshold Categories Under the Public Contracts Regulations 2015
The Public Contracts Regulations 2015 (PCR 2015) used financial thresholds to determine when public bodies were required to follow a fully regulated tender process and publish a contract notice on Find a Tender (FTS).
These thresholds, which applied to procurements that began before 24 February 2025 under the final PCR 2015 update, included VAT and were updated every two years under Procurement Policy Note (PPN) 11/23.
PCR 2015 Thresholds (Legacy Regime)
Below-threshold Publication Rules (PCR 2015)
These rules governed advertising, not fully regulated procedures:
- The central government was required to publish contract opportunities valued at £12,000 or more on Contracts Finder.
- Sub-central authorities were required to publish opportunities above £30,000 on Contracts Finder.
Below-threshold procurements still required transparency, proportionality, and equal treatment but allowed greater procedural flexibility.
These thresholds determined where the contract was advertised (FTS or Contracts Finder) and which procurement routes were available.
Examples of Application of the PCR 2015 Thresholds
The following examples illustrate how the thresholds applied in real procurement scenarios:
Example 1: Local authority service contract worth £200,000
A £200,000 contract exceeded the £30,000 Contracts Finder threshold but remained below the £214,904 sub-central FTS threshold. In this scenario, the authority was required to publish the opportunity on Contracts Finder and was able to use a proportionate, below-threshold procedure.
Example 2: Central government contract worth £200,000
This amount exceeds the £139,688 central government threshold, so the authority would:
- Publish a notice on Find a Tender
- Apply an above-threshold procedure (often open or restricted).
Example 3: Sub-central contract worth £25,000
This is below £30,000, so publication on Contracts Finder was not required. However, authorities still needed to apply transparency, proportionality, and fair treatment when selecting suppliers.
In all cases, evaluation records, award rationales, and communications had to be documented and retained for audit and compliance.
How PCR 2015 Thresholds Changed Over Time (2015–2024)
Under the Public Contracts Regulations 2015, financial thresholds were reviewed every two years to reflect exchange-rate movements and the UK’s obligations under the WTO Agreement on Government Procurement.
The thresholds shifted several times between 2015 and 2024, affecting when public bodies were required to publish notices on Find a Tender and apply above-threshold procedures.
When PCR 2015 came into force on 26 February 2015, the UK initially adopted the threshold values set under EU Directive 2014/24/EU. These values were subsequently updated through successive Procurement Policy Notes (PPNs) in 2016, 2018, 2020, 2022 and 2024. The final update took effect from 1 January 2024 and applied only to procurements that began before the transition to the Procurement Act.
Here is a summary of how the thresholds changed over the life of PCR 2015:
PCR 2015 Threshold Timeline (2015–2024)
Note: Light-touch regime thresholds before 2016 were defined at EU level (€750,000 under Directive 2014/24/EU). A UK-specific GBP value was not published for the short period between February and December 2015.
Procurement Procedures Under the Public Contracts Regulations 2015
The procurement procedures under PCR 2015 set out how public contracts were awarded. Each route offered a different balance between competition, flexibility, and administrative control.
Main procedures included:
- Open Procedure: All interested suppliers could submit a tender; ideal for straightforward procurements where specifications were clear.
- Restricted Procedure: A two-stage process with initial selection followed by tender submission; used when pre-qualification was necessary.
- Competitive Procedure with Negotiation: Allowed negotiation after initial tenders to refine solutions or pricing.
- Competitive Dialogue: Used for complex or innovative projects where requirements evolved through discussion with bidders.
- Innovation Partnership: Enabled authorities to collaborate with suppliers to develop and then purchase new solutions.
Each procedure had prescribed timelines, notice requirements, and evaluation criteria. Authorities were required to document their choice of route and demonstrate that it was proportionate to the contract’s scope and value.
Buyer and Supplier Responsibilities Under the Public Contracts Regulations 2015
The Public Contracts Regulations 2015 (PCR 2015) set out specific responsibilities for both public sector buyers and suppliers to ensure fairness and compliance throughout procurement.
Core Principles and Compliance Obligations Under the Public Contracts Regulations 2015
The Public Contracts Regulations 2015 (PCR 2015) rested on key principles that guided public bodies' procurement of goods, services, and works. These principles aimed to maintain fair competition, open access, and responsible conduct throughout the procurement process.
Core principles included:
- Equality and Non-Discrimination: All economic operators had to be treated equally, without discrimination based on nationality or location.
- Transparency: Procurement processes had to be open and traceable. Authorities had to publicise opportunities, publish evaluation criteria in advance, and justify award decisions.
- Proportionality: Requirements and procedures had to match the scale and complexity of the contract. Authorities could not demand more than was necessary.
- Competition: Procurements could not be designed to restrict or distort competition among suppliers unfairly.
- Value for Money: Contracts had to deliver the best overall outcome for the public, balancing quality and cost. Public bodies also had to assess social value requirements, which measured the wider benefits a contract delivered to society.
Compliance Obligations Under PCR 2015
To comply with PCR 2015, contracting authorities were required to:
- Advertise opportunities through Find a Tender (FTS) for above-threshold contracts
- Follow standard procedures such as open, restricted, or competitive dialogue routes
- Use standardised procurement tender documentation, including the Invitation to Tender (ITT), Selection Questionnaire (SQ), replacing the old Pre-Qualification Questionnaire (PQQ)
- Prepare all documents (award criteria, contract conditions, and tender requirements) at the start of the process
- Document and justify decisions, providing clear feedback to unsuccessful bidders. In the case of a directly awarded contract, provide a defensible VEAT notice.
- Apply exclusion and self-cleaning rules, giving bidders the chance to show they had remedied past misconduct
- Comply with social, environmental, and labour laws, excluding tenders that would have breached these obligations
- Guarantee subcontractor payments within 30 days to promote supply-chain fairness
Failure to meet these obligations could expose contracting authorities to legal challenges, financial penalties, and reputational harm.
Remedies and Enforcement under the Public Contracts Regulations 2015
The Public Contracts Regulations 2015 (PCR 2015) established a legal framework for challenging procurement decisions that breached the law. These remedies protected suppliers’ rights and promoted fairness in public sector purchasing.
Any business (referred to as an economic operator) that suffered, or risked suffering, loss due to a breach of PCR 2015 could bring a claim before the High Court.
There were two main types of claims:
- Pre-contractual challenges: Raised before a contract was signed, often to correct a flawed evaluation or award process.
- Post-contractual challenges: Brought after a contract was awarded, typically where serious breaches had occurred.
A claim had to be made within 30 days of when the supplier became aware of the breach.
Key Remedies Under the Public Contracts Regulations 2015
- Automatic Suspension: If legal proceedings began before the contract was signed, the award process was automatically paused until the court decided whether the suspension should remain in place.
- Declaration of Ineffectiveness: A court could declare a contract void if it had been awarded without the required notice or in serious breach of the rules.
- Damages: Suppliers could receive financial compensation if they proved a “sufficiently serious” breach caused direct loss.
- Set-Aside Orders and Penalties: Courts could cancel unlawful decisions, rerun tenders, or impose financial penalties on contracting authorities.
Compliance with PCR 2015 was supported by oversight from the Cabinet Office and the Public Procurement Review Service (PPRS). The Technology and Construction Court (TCC) handled procurement disputes, with powers to suspend awards, set aside decisions, and award damages.
Authorities were also required to maintain full procurement records, publish notices, and justify award decisions.
Why the Public Contracts Regulations 2015 were Important For Suppliers (Supplier Perspective)
For suppliers, the Public Contracts Regulations 2015 (PCR 2015) provided clarity on how public sector contracts were awarded and offered a fair framework to compete on.
Using Find a Tender and Contracts Finder Effectively
Suppliers were expected to monitor both platforms:
- Find a Tender Service (FTS) for high-value contracts above the threshold
- Contracts Finder for below-threshold contracts from central or sub-central public bodies
Understanding the broader public sector tender landscape also helps suppliers identify opportunities earlier and navigate multiple procurement portals with more confidence.
Understanding Selection and Award Criteria
Under the PCR 2015, contracting authorities were required to publish selection and award criteria clearly and in advance. Suppliers needed to align their bid management with those criteria and show evidence of how they met them. Evaluations were often based on the “most economically advantageous tender (MEAT)” model.
SME Participation and Pre-engagement Strategies
The regulations also encouraged SME participation through proportionate documentation and open advertising. Effective tactics included early engagement, analysing contract-award data, and forming partnerships for larger bids.
Here are three approaches to winning government tenders:
- Pre-engage via contract award data
- Uncover opportunities with buyer deep dives
- Consult over the prior permission request.
PCR 2015 and the Procurement Act 2023
For procurements that started before 24 February 2025, the Public Contracts Regulations 2015 (PCR 2015) continue to apply. After that date, new regulated contracts fall under the Procurement Act 2023 (PA 2023).
Below is a quick comparison between the two regimes:
You can read our guide on the Procurement Act 2023 Playbook for more detailed information.
Key Case Law under the Public Contracts Regulations 2015
Courts shaped how the Public Contracts Regulations 2015 (PCR 2015) worked in practice through key rulings. One of the most significant recent cases was R (Good Law Project) v Secretary of State for Health and Social Care [2022], which examined how PPE contracts were awarded during the pandemic.
The court found that using a “high-priority lane” for suppliers with political or departmental connections breached PCR 2015’s requirement for equal treatment. Even in urgent situations, contracting authorities were required to follow fair and objective criteria, not informal referrals or undisclosed shortcuts.
This case mattered because the ruling reinforced the practical expectations of PCR 2015. Authorities had to be able to show that supplier selection was unbiased, evidence-based, and traceable. For suppliers, it confirmed that the regulations protected their right to fair competition.
Key takeaways from the ruling included:
- Equal treatment applied in all circumstances, including emergencies
- Selection had to use published criteria, not private referrals
- Decision-making needed to be documented to withstand scrutiny
This example illustrated how courts applied PCR 2015 and why transparency, documentation, and consistency were essential for compliant procurement.
Useful Resources and Guidance
The following resources provide reliable guidance to help public sector buyers and suppliers understand how the Public Contracts Regulations 2015 (PCR 2015) apply.
Final Word
The Public Contracts Regulations 2015 (PCR 2015) remained in force until the Procurement Act 2023 fully came into force. The new regime focuses on transparency, flexibility, and better contract performance.
For both buyers and suppliers, early understanding of these changes helps reduce risks and improve tender outcomes. For insights on how thresholds and tender volumes are shifting, explore the Procurement Act Guidance and its impact on new tender volumes.
Explore the Stotles platform and see how it helps you find new tenders early, track buyer activity, and strengthen your public sector wins.
Want a custom report?