How are the thresholds for low to high value determined?
At the inception of the State Procurement Board and procurement reform, a relatively low dollar threshold was set to determine low value / high value. Over the past three years, reviews of procurement transactions have resulted in the need to significantly increase the high value threshold (to $1,100,000), to be more reflective of the needs of public authorities. The overall value of procurement undertaken across government in the “low value” category still constitutes a high number of transactions, but accounts for minimal spend overall. The potential for strategic decisions resulting in better value for money is more likely to reside in the higher value contracts.
