The world of government contracts can be complex, and understanding the latest changes and updates to the rules and regulations can be a daunting task. One important change to take note of is the new concession contract threshold for 2020.

So, what exactly is a concession contract? In simple terms, it is an agreement between a government entity and a private company or individual for the operation of a public service or facility. These contracts can cover a wide range of areas, from running a national park to operating a toll road.

The concession contract threshold refers to the maximum value of a concession contract that can be awarded without going through a competitive bidding process. In other words, contracts that fall below this threshold can be awarded directly to a specific company or individual without having to go through the usual bidding process.

For 2020, the concession contract threshold has been increased to €5.548 million for works concessions and €144,000 for service concessions. This represents a significant increase from the previous year`s thresholds and is designed to provide greater flexibility for government entities when it comes to awarding contracts.

However, it is important to note that the new thresholds only apply to contracts that fall within the scope of the European Union`s Concessions Directive. This means that contracts for certain areas, such as defense and security, are not affected by the new thresholds.

In addition to the increase in the concession contract threshold, there have also been other changes to the rules governing concession contracts. For example, the new rules place a greater emphasis on environmental and social considerations when awarding contracts. This means that companies interested in bidding for concession contracts may need to demonstrate their commitment to sustainable practices and social responsibility.

Overall, the new concession contract threshold for 2020 represents an important change for businesses and government entities alike. By increasing the threshold, it is hoped that the process of awarding concession contracts will become more streamlined and efficient. However, businesses should still be prepared to demonstrate their value and commitment when bidding for these contracts, even if they fall below the new threshold.