A low-value contract is a simplified public procurement procedure for purchases below the financial limits set by law. In EU-funded projects it is the most commonly used procedure, because most ordinary expenditure – equipment, training, expert services, publicity – fits within it. Simplified, however, does not mean informal: the beneficiary must still demonstrate economy, efficiency, and non-discriminatory selection, generally through a documented market survey. Correctly determining the contract's estimated value is critical, including the prohibition on artificially splitting it into smaller parts merely to circumvent a stricter procedure; splitting related supplies is precisely among the most common audit findings. The entire file – the request for a quotation, the offers received, the evaluation, the order or contract, and proof of delivery – must be archived, since it is verified both when a payment request is checked and retrospectively during an audit.
See also: Public procurement in EU projects, Market research, Eligible expenditure.
