Procurement Threshold Map
NHS & Defence Intelligence | Quick Reference for Budget Holders
Latest update · 20 April 2026
- G-Cloud 14 lots 1–3 extended by Crown Commercial Service for six months, to 28 October 2026, to bridge into G-Cloud 15. Source: Contracts Finder.
- PPN 023: 2026 Procurement Act threshold amounts now in force. Source: NHS Commercial Solutions.
- FDP adoption: grown from 118 to 151 trusts since June, short of the 240 year-end target. Government ministers have sought legal advice on invoking the £330M Palantir contract break clause. Westminster Hall debate held 16 April 2026.
- Sovereign AI Unit Phase 2: £500M announced by DSIT in April 2026; James Wise chairing; seven firms already in portfolio.
NHS Procurement Thresholds 2024-25
£0–499
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Approvals & Payment:
- No purchase order required
- Instant approval
- Corporate card payment
- No budget holder sign-off needed
Quick win: Use this band for low-cost consumables, subscriptions, and one-off services. Keep receipts for audit.
£500–4,999
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Approvals & Payment:
- Purchase order required
- Single budget holder approval
- Corporate card or invoice payment
- No competitive process
Key action: Get your budget holder to approve the PO. This is where Sovereign Meridian Individual tier sits.
£5,000–24,999
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Approvals & Payment:
- Competitive quotes (usually 3)
- Budget holder + line manager approval
- Invoice with purchase order
- Procurement involvement begins
Note: Sovereign Meridian Team tier (£2,999) sits just below this threshold. Once you cross £5K, you need quotes and two-level approval.
£25,000–49,999
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Approvals & Payment:
- Formal tender process begins
- Procurement team involvement required
- Timeline: 4–8 weeks typical
- Documentation: tender pack, evaluation criteria, contract terms
Intelligence subscription positioning: Sovereign Meridian ICS Licence (£25K–45K) enters this zone but as a "digital subscription" not "consultancy". This matters for procurement controls and IR35 avoidance. See comparison below.
£50,000+ | £139,688+ (FTS Threshold)
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Approvals & Payment:
- Full regulated procurement exercise
- OJEU/Find a Tender listing (if over £139,688 FTS threshold 2024-25)
- Timeline: 3–6 months
- Cabinet Office and CCS frameworks preferred routes
- Public Contracts Regulations apply in full
FYI: The 2024-25 Find a Tender Service (FTS) threshold is £139,688. Anything above triggers OJEU advertising in England.
Defence & DIO Procurement Thresholds
£0–5,000
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Approvals & Process:
- Low-value purchase
- Single source acceptable
- No formal competition
- Quick approval cycle
DIO note: Standing frameworks (FDIS, SLA) often used for estates/facilities. Check if your supplier is on an active framework first.
£5,000–25,000
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Approvals & Process:
- Competitive quotes required
- Contract reference needed
- Below-threshold competition
- Internal DIO approval route
Framework option: Check G-Cloud or CCS Management Consultancy frameworks, can accelerate sourcing.
£25,000–139,688
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Approvals & Process:
- Below-threshold competition required
- CCS frameworks (G-Cloud 16, DOS) preferred route
- Formal procurement documentation
- Full contract governance
Smart buy: If procuring digital services/subscriptions, G-Cloud 16 is the standard DIO route in this band. Faster than full tender.
£139,688+
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Approvals & Process:
- Full regulated procurement
- Cabinet Office Competition Requirements apply
- CCS frameworks (G-Cloud, DOS, Management Consultancy) strongly preferred
- Full audit trail and governance
- Timeline: 2–6 months depending on route
Framework-first approach: DIO now strongly prefers CCS frameworks over open tenders. Check if your service is available on G-Cloud or DOS.
Why "Intelligence Subscription" Avoids the Consultancy Trap
❌ Consultancy Procurement
- IR35 status checks required
- Day rate benchmarking (market testing)
- Detailed scope of work definition
- Deliverable sign-off & acceptance
- Procurement controls trigger at £5K+ (NHS)
- 4–12 week sourcing cycle typical
- Full PSC vetting rules apply
- Complex contract variations
✓ Intelligence Subscription
- Standard digital SaaS purchase
- Fixed annual pricing (no negotiation)
- License agreement (not delivery contract)
- Automatic renewal & cancellation rights
- Treated as software license purchase
- Fast-track approval (2–4 weeks)
- Minimal vendor credibility checks
- Standard T&Cs from vendor
Why this matters: Sovereign Meridian is positioned and delivered as an intelligence subscription platform, not a consultancy engagement. This means no IR35 implications, no day-rate reviews, and faster procurement cycles at all price points.
Sovereign Meridian Tiers & Procurement Positioning
Free
£0
No procurement needed. Product demo / evaluation access. No contracts. Start immediately.
Individual
£499/year
NHS Zone: Below PO threshold. Individual budget holder on corporate card. Defence: Low-value purchase, single source. No approval chain required.
Team
£2,999/year
NHS Zone: Below £5K competitive quote threshold. Budget holder approval only. Defence: Still single-source acceptable. No procurement team involvement.
ICS Licence
£25,000–45,000/year
NHS Zone: Enters formal tender zone BUT positioned as "digital subscription" not "consultancy"; avoids IR35, speeds approval, G-Cloud 16 is applicable route. Defence: Below-threshold or framework competition. CCS frameworks preferred.
Paid Subscriber Access
Get the intelligence advantage. Unlock:
Quarterly Updated Threshold Reference
G-Cloud & DOS Listing Tracker
Named Procurement Contacts @ Top 20 ICBs
Budget Holder Template Justifications
OJEU Threshold Updates (Live)
Procurement Control Quick-Check Tool