A procurement threshold is a contract value level that determines which set of rules a public purchase must follow. Contracts estimated above the relevant threshold are advertised more widely and run under stricter, more formal procedures; contracts below it follow lighter national or internal rules.
Thresholds vary by who is buying and what they are buying — central government bodies typically face lower thresholds than local ones, and works contracts sit far higher than supplies and services. The test uses the estimated total value of the whole arrangement excluding tax, not a single order, which is why an apparently modest framework can still be advertised at the highest level. Splitting a requirement into smaller pieces purely to fall below a threshold is prohibited.
For suppliers, thresholds mainly answer two questions: where a contract will be advertised, and how much process to expect. Above-threshold procurements reach a wider audience and attract more competition, with prescribed timescales and standardised paperwork. Below-threshold work is often faster, more local, and more winnable for a smaller supplier — but it appears only on national or buyer-level platforms, so it is invisible if you monitor only the international journals.