Regulation 5 Calculating the value of a contract

The value of a contract F1or component is to be determined—

For the purposes of the Act and these Regulations, the value of a contract F2or component means the consideration (net of value added tax) which the contracting authority expects will be payable under the contract or component.

The contracting authority must determine the value of a contract F3or component—

In making that determination, a contracting authority must—

Subject to F10paragraph (6), where—

the value of the contract is the aggregate of the consideration which the contracting authority has paid or expects to be payable under the contract and all of those other contracts or proposed contracts.

For the purposes of paragraph (5)(b)—

the contracting authority must disregard a contract, or a proposed contract, which has a value of £250,000 or less where it is reasonably satisfied that the procurement has not been subdivided in order to avoid the requirements of the Act and these Regulations.

Condition A is that the contract has a value of F13more than £250,000 but less than £1,000,000.

Condition B is that the aggregate value of—

is less than 20% of the aggregate of the consideration which the contracting authority has paid or expects to be payable under all contracts entered into, or to be entered into, for the purpose of fulfilling the requirement mentioned in paragraph (5)(a).

A contract which has a value of £1,000,000 or less shall not be treated as a qualifying defence contract by virtue of this regulation unless the contracting authority is reasonably satisfied that the procurement has been subdivided in order to avoid the requirements of the Act and these Regulations.

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In this regulation, “the contracting authority” means the party to the contract which is, or would be, liable to pay the contract price.