Above vs. Below-Threshold Procurement: What Suppliers Need to Know

If you’ve ever read a tender notice and seen the term “above-threshold” or “below-threshold,” you might have wondered - what exactly does that mean, and why does it matter?

Public procurement thresholds define how government contracts are advertised, what rules apply, and how much competition you’ll face. 

In short, they set the dividing line between large, heavily regulated procurements and smaller, more flexible ones.

For suppliers, understanding these thresholds isn’t just about compliance - it’s about strategy. It helps you know which opportunities to pursue, how to prepare, and where to focus your efforts for the best chance of success.

1. What Procurement Thresholds Are (and Who Sets Them)

Procurement thresholds are monetary values that determine how public sector contracts are handled. 

If a contract’s estimated value exceeds a certain threshold, the buyer must follow stricter, EU- or nationally mandated procurement rules. If it falls below that limit, the buyer has more flexibility in how they buy.

These thresholds are not random - they’re set and reviewed every two years by regulatory authorities, such as the European Commission or national governments. Different thresholds apply depending on:

• The type of buyer (e.g., central government, local authority, utilities).
  
  

• The type of contract (e.g., goods, services, works).

For example, a construction project typically has a higher threshold than a consultancy service contract.

So when you see “above-threshold,” it means the contract is large enough to trigger full procurement procedures, while “below-threshold” usually signals smaller, simpler opportunities.

2. Above-Threshold Procurement Explained

Above-threshold procurement applies to contracts that exceed the financial limits defined by public procurement law. These tenders must follow full, formal procedures - such as the open, restricted, or negotiated procedures set out in EU directives or national regulations.

What it looks like in practice

• Publication: The tender must be advertised publicly - usually on national portals and the EU-wide platform, Tenders Electronic Daily (TED).
  
  

• Transparency: Buyers must follow strict rules to ensure equal treatment and fair competition.
  
  

• Documentation: Suppliers must submit detailed bids that demonstrate compliance with all mandatory requirements.
  
  

• Timeline: The process typically takes longer, with minimum publication and evaluation periods that can stretch over several months.

Example

A regional government wants to purchase a €300,000 IT system. Because this exceeds the threshold for service contracts, it must follow the full EU procurement procedure. The tender is published on TED, and suppliers from across Europe can compete.

What this means for suppliers

Above-threshold tenders are often high-value and prestigious - but also complex and competitive. They require strong administrative capacity, well-prepared documents, and sometimes professional bid management support.

3. Below-Threshold Procurement Explained

Below-threshold procurement covers contracts whose value falls under the regulatory limits. These tenders are still subject to transparency and fairness principles - but buyers have far more flexibility in how they run them.

What it looks like in practice

• Simplified process: Buyers can invite a shortlist of suppliers directly or use a quick competitive process.
  
  

• Local focus: Many below-threshold tenders are published only on regional or buyer-specific portals.
  
  

• Shorter timelines: Less bureaucracy means quicker decisions and faster contract awards.

Example

A local city hall needs catering for a public event worth €40,000. The contract falls below the national threshold for services, so the procurement team can invite three local catering firms to submit quotes.

What this means for suppliers

Below-threshold contracts are ideal for SMEs. They’re faster to bid for, easier to deliver, and help build credibility with public buyers. Many suppliers start here before moving up to larger, above-threshold contracts.

4. Why the Difference Matters for Suppliers

Understanding whether a tender is above or below threshold helps you assess:

1. Visibility

• Above-threshold contracts are published on major portals (like TED), giving you wide visibility but also high competition.
  
  

• Below-threshold contracts may only appear locally - on smaller portals or regional platforms - so they’re easier to miss without the right tools.

2. Competition Level

• Above-threshold = often national or international competition.
  
  

• Below-threshold = mostly regional or local suppliers, giving smaller businesses a better chance.

3. Complexity and Cost

• Above-threshold bids require more documentation, formal responses, and compliance checks.
  
  

• Below-threshold bids are simpler, but you still need to meet basic legal and technical requirements.

4. Opportunity Type

• Above-threshold = larger, long-term contracts with higher revenue.
  
  

• Below-threshold = smaller, recurring contracts that build relationships and open future doors.

In short: above-threshold tenders test your capability, while below-threshold tenders test your responsiveness. Both can be valuable - if you know how to approach them.

5. How to Find Both Types of Opportunities

You don’t need to hunt through dozens of websites to find the right tenders - if you know where to look.

Above-threshold

• Tenders Electronic Daily (TED): The official EU portal for all contracts above the EU thresholds.
  
  

• National portals: Each country has its own (e.g., Doffin in Norway, Udbud.dk in Denmark).
  
  

• Mercell: Aggregates all above-threshold tenders across regions, saving you time and ensuring nothing slips through the cracks.

Below-threshold

• Regional or local portals: Many municipalities and agencies publish smaller opportunities locally.
  
  

• Buyer websites: Some small contracts are only advertised directly on the buyer’s site.
  
  

• Mercell: Uniquely combines both national and local sources - so you see below-threshold tenders most suppliers miss.

6. Strategic Tips for Suppliers

The smartest suppliers don’t treat all tenders the same - they adapt their approach to the threshold.

For SMEs

• Start with below-threshold tenders to gain experience and references.
  
  

• Focus on building strong local relationships and delivering high-quality work.
  
  

• Use wins to qualify for larger, above-threshold frameworks later.

For established suppliers

• Target above-threshold tenders to secure long-term, high-value contracts.
  
  

• Build robust compliance processes and reusable bid documentation.
  
  

• Consider partnerships or consortia for large or multi-region bids.

For everyone

• Always check the estimated contract value before investing time in a bid.
  
  

• Use automated tools like Mercell to filter by value range, buyer type, and procedure.
  
  

• Track expiring below-threshold contracts - they often reappear annually or biennially.

Understanding Thresholds = Smarter Bidding

Procurement thresholds might seem like fine print, but they shape every aspect of how buyers purchase - and how suppliers compete.

Above-threshold tenders demand structure, patience, and preparation. Below-threshold opportunities reward agility, relationships, and responsiveness. The most successful suppliers? They understand both and build a strategy that balances scale with accessibility.

That’s where Mercell helps. Our platform gives you full visibility across both above- and below-threshold tenders, combining national listings with hard-to-find local opportunities.