Most public contracts a small firm can realistically win sit below the Procurement Act's thresholds. The rules for them are lighter, they can't make you pass a pre-qualification stage first, and they can be reserved for smaller or local suppliers. Here's how the numbers and the reservations work.
The numbers that matter
Thresholds include VAT and apply from 1 January 2026 to 31 December 2027:
| Goods and services, central government | £135,018 |
|---|---|
| Goods and services, other public bodies | £207,720 |
| Works | £5,193,000 |
Above those, a contract is a "public contract" and the full Act applies. Below them it's a below-threshold contract, governed by Part 6 of the Act.
A buyer that wants to advertise a below-threshold contract must first publish a below-threshold tender notice on the Central Digital Platform if the contract is worth at least £12,000 (central government, which now includes NHS trusts and NHS foundation trusts) or £30,000 (every other contracting authority), including VAT. Under those amounts, or when a buyer invites quotes only from a closed group of suppliers it chose, there may be no notice to find. Contracts at that size are often won by being known to the buyer.
Why there's no pre-qualification stage
Section 85 of the Act says a buyer running a regulated below-threshold procurement can't restrict who may submit tenders by reference to their suitability to perform the contract: legal status, financial capacity or technical ability. GOV.UK's guidance spells out what that means: no separate suitability stage before tenders as a way of reducing the number of suppliers invited, because that kind of assessment is "a particular barrier for SMEs and VCSEs". The buyer may still assess suitability when it awards the contract.
The rule has limits. It doesn't apply to contracts awarded by devolved Welsh authorities (which follow their own guidance), to contracts awarded under a framework, or to larger below-threshold works contracts. Concession and utilities contracts aren't regulated below-threshold contracts at all (section 84), so the rule never covers them. Schools and transferred Northern Ireland authorities are outside Part 6 altogether. That's why Bidlark only shows "No pre-qualification stage" on Find a Tender notices published under the Procurement Act, for below-threshold services or goods, not frameworks, dynamic markets, concessions or utilities contracts, from buyers outside Wales, Scotland and Northern Ireland that aren't schools.
Competitions reserved for small firms and charities
Below the thresholds, buyers have discretion to reserve a competition to small and medium-sized enterprises, to voluntary, community and social enterprises, or to both. The Act defines an SME (section 123) as a supplier with fewer than 250 staff and a turnover of £44 million or less, or a balance sheet total of £38 million or less. VCSE isn't defined in law; GOV.UK describes it broadly as any organisation working with a social purpose, from small community groups to registered charities, social enterprises, public service mutuals and co-operatives.
On Find a Tender a reserved competition carries the code "smeVcse", which Bidlark shows as "Reserved for small firms and charities". If your profile says you have under 250 staff, the card tells you that you almost certainly count: an SME also needs a turnover of £44 million or less, or a balance sheet of £38 million or less.
Competitions reserved to UK or local suppliers
Since the Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026, councils and other best value authorities in England can choose to reserve a below-threshold competition to contractors "based within" the UK or a defined local area. "Based within" means where the contractor is based or has established substantive business operations, whatever its ownership.
The local area can be the authority's own area, or that area plus any bordering counties or London boroughs. District councils can't extend to neighbouring districts on their own, but can use the county they sit in. Central government departments have a separate policy (PPN 005) that lets them reserve to UK suppliers or a single county or London borough.
The authority must say which reservation it's relying on, and which areas make up the local area, in the below-threshold tender notice (the "Conditions of participation" free text). Find a Tender also carries the areas as ONS codes. Bidlark reads them against where your firm is based and your other offices: if you're inside, the card says so; if you're clearly outside, it's "Not this one", because it can't be fixed in time.
Frameworks and lots
A framework is an agreement that lets the buyer award contracts later to the suppliers on it, often with no amount of work promised. It can be worth joining, but winning a place isn't winning work. Lots split a contract into parts so a supplier can bid for one; they're one of the ways buyers reduce the barriers small firms face.
A quick checklist
- Is it below the threshold? Then expect a lighter process and no shortlisting on suitability (outside the exceptions).
- Is it reserved? Check the Conditions of participation for SME, VCSE, UK or local area wording.
- Is it a framework? Read how call-offs work before you count it as revenue.
- Is it in lots? Bid for the part you do best.