Competitive tendering
Competitive tendering is how UK public buyers award contracts to the most advantageous tender. Routes, 2026 thresholds and practical advice for smaller suppliers.
Updated on September 5, 2026
Competitive tendering is the process by which a public buyer chooses, among the tenders it receives, the most advantageous one, judged against criteria announced in advance. In everyday use the phrase also covers any competition run by a government department, council, NHS body or other public organisation, whatever its size.
How it works
Under the Procurement Act 2023, in force in England, Wales and Northern Ireland since 24 February 2025, an above-threshold contract must be awarded through a competitive tendering procedure unless a direct award ground applies. There are two routes. The open procedure invites any supplier to tender in a single stage. The competitive flexible procedure lets the buyer design its own multi-stage competition, with shortlisting, dialogue or negotiation.
The thresholds that trigger the above-threshold regime changed on 1 January 2026: £135,018 for central government goods and services, £207,720 for other contracting authorities, £415,440 for utilities and £5,193,000 for works, all figures including VAT (verified 2026-09-05, PPN 023 and SI 2025/1200). Note that VAT-inclusive basis: it is a genuine break from the pre-2025 rules and from the Irish and EU figures, which are net of VAT.
In both routes the buyer publishes a tender notice, makes the tender documents available, receives tenders by a stated deadline, scores them against weighted award criteria, issues an assessment summary to every bidder, publishes a contract award notice and waits out an eight-working-day standstill before signing. Below the thresholds a lighter regime applies, with fewer formalities but still a duty to advertise above modest values.
What it means for a bidder
Winning tenders takes method rather than scale. Read the instructions to tenderers first: they set the deadline, the required documents and the weightings. Then invest in the quality submission, which frequently carries as much weight as price. And price properly at the first attempt, because in an open procedure there is no negotiation.
Most sizeable requirements are divided into lots, which lets a small firm bid only for the package that matches its trade.
Example
A district council tenders the supply and maintenance of its IT estate, valued at about £310,000 including VAT over four years. The figure exceeds the £207,720 sub-central threshold, so the notice is published on Find a Tender. A twelve-person IT services company bids for the maintenance lot alone and wins on a shorter guaranteed response time than its competitors.
Frequently asked questions
Can I negotiate my price?
Not in an open procedure. In a competitive flexible procedure you can, but only if the tender notice says negotiation forms part of the process.
Is there a minimum turnover to bid?
A buyer may set a financial standing requirement, but it must be proportionate to the contract and it may not demand audited accounts from a supplier not legally required to produce them.
Where do I find live tenders?
On Find a Tender, and on the national portals for Scotland, Wales and Northern Ireland, or eTenders in Ireland. A monitoring tool such as Scoutee can pull these sources together and alert you to the notices that match your business.