Procurement Policy Note 11/20: Reserving below threshold procurements · first published 15 December 2020
PPN 11/20 was published in December 2020 and explains new options available to public-sector buyers following the UK's exit from the EU. Because EU procurement rules no longer apply to contracts below certain value thresholds, buyers now have greater freedom to streamline how they run those smaller procurements. The note encourages contracting authorities to use these freedoms to tackle economic inequality, support new businesses, and bring new entrants into government supply chains. For small businesses, this is significant: buyers can legitimately reserve or simplify below-threshold competitions in ways that favour local, new, or smaller suppliers. However, because we only have the summary text of this document, the precise mechanisms, value thresholds, and any mandatory requirements are not confirmed here.
WHO THIS APPLIES TO
THE ENKII VIEW
This PPN is broadly good news for SMEs (small and medium-sized enterprises): it explicitly names "attracting new entrants to government markets" and "encouraging entrepreneurship" as policy goals, meaning buyers have a green light to design below-threshold competitions that smaller firms can realistically win. The risk for SMEs is that these are options for buyers, not obligations — so the benefit depends on whether the specific buyer chooses to apply them. SMEs should be aware these freedoms exist and can proactively raise them in supplier engagement.
1. When engaging with a buyer before a below-threshold competition opens, ask whether they are applying PPN 11/20 flexibilities — such as reserving the contract or simplifying the process — and flag your status as a small or new-entrant supplier.
SMEs seeking to enter or grow in public-sector markets — The PPN explicitly names attracting new entrants and encouraging entrepreneurship as goals buyers can pursue; raising it signals awareness and may prompt the buyer to apply the freedoms in their favour.
2. Monitor procurement portals for reserved or simplified below-threshold competitions, which may have lighter tender requirements than full regulated procurements.
SMEs bidding on below-threshold public contracts — The PPN encourages buyers to 'streamline and simplify procurement under these thresholds', which may mean shorter ITTs (Invitations to Tender), fewer compliance burdens, or reserved lots that larger incumbents cannot bid on.
3. Build a short narrative around your contribution to local jobs, skills, and supply chain resilience, ready to include in any below-threshold bid.
SMEs in supply chains or seeking new public-sector customers — The PPN lists 'create new businesses, jobs and skills' and 'increasing supply chain resilience' as explicit policy outcomes buyers are encouraged to pursue, so evidence on these points directly supports evaluation criteria a buyer may apply.
Every rule below quotes the official document verbatim.
The PPN covers contracts for goods, services and works with a value below the applicable procurement thresholds. (All contracting authorities, below-threshold contracts, all sectors)
“options available to Contracting Authorities to streamline and simplify procurement under these thresholds”
Buyers may use below-threshold freedoms to tackle economic inequality, create new businesses, jobs and skills, increase supply chain resilience, encourage entrepreneurship, and attract new entrants to government markets. (All contracting authorities, below-threshold contracts)
“tackle economic inequality, create new businesses, jobs and skills, as well as increasing supply chain resilience, encouraging entrepreneurship, and attracting new entrants to government markets”
The new flexibilities arise from the UK's exit from the EU, which removed previous EU rules constraining how below-threshold contracts are awarded. (All contracting authorities, post-Brexit below-threshold contracts)
“The UK's exit from the EU means we can exercise additional freedoms in relation to contract spend on goods, services and works contracts with a value below the applicable thresholds”
These are options available to buyers, not mandatory requirements — the PPN 'sets out information and associated guidance on the options available'. (All contracting authorities)
“sets out information and associated guidance on the options available to Contracting Authorities”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.