Common phrases in the Procurement Process listed alphabetically
A
| AEO | Authorised Economic Operator status is a certified standard authorisation issued by customs administrations in the European Union (EU). |
| AGREEMENT | The legally binding contract terms and conditions between the parties; another word for a Contract |
AWARD
| The issue of an order or contract to a supplier. |
| AWARD CRITERIA | Criteria, set out in tender documentation, on which tenders will be evaluated and the award of the contract will be based |
B
| BAFO (Best and Final Offer) | The final offer submitted by a bidder after negotiations, reflecting the best terms they can provide.
|
| Benchmarking | Comparing procurement processes and performance metrics to industry bests and best practices from other organisations.
|
| Bespoke Contract | A contract that is specifically tailored to the needs of the client, rather than using standard terms and conditions.
|
| BID | A tender/offer by a tenderer, in response to an invitation by the buyer, usually following an invitation to tender or a tender notice, quoting his price and setting down his other terms and conditions of supply if those specified by the buyer are not complete in his view or are not acceptable to him. |
| BUYER | The legal entity requesting and buying goods, works or services through contracts and, in most cases, in return paying for these. |
C
| Category Management | A strategic approach to procurement where products or services are grouped into categories, allowing for more focused and efficient purchasing strategies. |
| CIRCULAR | Circular procurement is the process by which private or public authorities purchase works, goods or services that seek to contribute to closed energy and material loops within supply chains while minimising, and in the best case avoiding, negative environmental impacts and waste creation across their whole life-cycle. |
| CLIENT | The term Client is a generic term referring to a Sanctioning Authority, Sponsoring Agency or Contracting Authority acting as client. See also: Contracting Authority |
COMPETITIVE DIALOGUE
| Requirements are advertised by contracting authorities who may enter into dialogue with interested parties. This procedure is used in the case of particularly complex contracts where the use of open or restricted procedures would not allow for successful award of contract. |
COMPETITIVE PROCEDURE WITH NEGOTIATION
| This procedure can only be used by contracting authorities in special circumstances for example where irregular or unacceptable tenders have been received in response to an Open or Restricted Procedure |
| CONSORTIUM | Group of beneficiaries or procurers. |
CONTRACT
| A binding agreement made between two or more parties which is intended to be enforceable at law.
|
| CONTRACT CONDITIONS | The Contract Conditions set out the legal obligations, roles and responsibilities of the parties (and those of their agents) in a contract. |
| CONTRACT NOTICE | A publication which advertises a procurement requirement. |
| CONTRACTING AUTHORITY | The organisation that procures the contract. See also: Client. |
| CONTRACTOR | An organisation which has entered a contract to supply goods and/or services. |
| Contract Lifecycle Management (CLM) | The process of managing contracts from initiation through execution, performance, and renewal or expiration. |
| CONTRACTOR’S PERSONNEL | The Contractor’s personnel include the Contractor’s representative, supervisor and subcontractors, employees and other persons working on or adjacent to the site for the Contractor or subcontractors, and other persons assisting the Contractor to perform the Contract. |
| CPP | Corporate Procurement Plan. Sets practical and strategic objectives for improved procurement outcomes and recommends the implementation of appropriate measures to ensure these objectives are achieved |
| CPV CODE | Common Procurement Vocabulary. These codes enable interested organisations to search for appropriate opportunities based on their industry sector (sub sector). |
| Cost-Benefit Analysis | A method of comparing the costs and benefits of different procurement options to determine the best value for money. |
| CSR POLICY | Corporate Social Responsibility Policy. A policy which demonstrates adherence to law, ethical standards, and international norms. |
| CWMF | Capital Works Management Framework – this is the system of forms, procedures and documents used to procure construction services and contractors. |
D
| DEBRIEF | The process where feedback is provided to unsuccessful bidder(s) on their bid. |
| DEMAND PLANNING | The process of forecasting the future demand for products or services to ensure that supply meets demand. |
| DIRECTIVE | EU Directives set legal obligations which, if violated, can give rise to serious legal/financial sanctions. |
| DoA | Description of the action |
| DIRECT TENDERING | (sometimes referred to as restricted or selective tendering) a tendering process where a number of suitable contractors, suppliers or service providers are invited to submit tenders for contracts below EU thresholds without public advertising. |
| DPS | Dynamic purchase system. An electronic procurement process, where the Contract Notice remains open throughout the lifetime of the DPS meaning that new suppliers can join at any time. |
E
| E-AUCTION | An electronic auction where suppliers bid against each other online in real-time to win a contract. |
| E-ITT | Tender documents which are to be completed via an online system. |
| E-PROCUREMENT | The use of electronic systems to acquire goods, works, services and payments from third parties. |
| E-TENDERS | Electronic tenders are the norm in public sector procurement; the whole tendering process is conducted |
| EC | European Commission |
| ECONOMIC OPERATOR | A term used in procurement regulations for a contractor, supplier or service provider. |
| EFT | Ecteronic Funds Transfer |
| EMS | Environmental Management System. |
EOI
| Expression of Interest |
| EPS | Education Procurement Service |
| ER | Employer’s Representative |
| ESR | Evaluation summary report. Summary report with details of the evaluation of a proposal. Based on the comments and scores of the evaluation committee. |
| ERLs | Evaluation result letters. Letter informing applicants of the result of the evaluation of their proposal. |
| ESPD | European Single Procurement Document A self-declaration of a businesses’ financial status, abilities and suitability for a public procurement procedure (e.g. paid taxes, no criminal convictions etc.). |
| EU | European Union |
EVALUATION
| The detailed assessment and comparison of suppliers’ offers. |
| EVALUATION CRITERIA | Tender evaluation criteria is the method by which a tender response is marked. Related to award criteria. |
| EXPRESSION OF INTEREST (EOI) | A preliminary stage in procurement where suppliers express their interest in participating in a tender process. |
F
| FIXED PRICE | A price which is not subject to variation. |
| FOI | Freedom of Information. |
| FR | Financial regulation. EU Regulation No 966/2012 which (together with the Rules of Application (RAP) Regulation No 1268/2012) sets out the procedures for managing EU funds/funding programmes. |
FRAMEWORK AGREEMENT
| An agreement where the Purchasing Authority can call off goods/services from several suppliers. |
G
| GDPR | General Data Protection Regulation legislates how personal data is handled and stored. |
| GPA OR GOVERNMENT PROCUREMENT AGREEMENT | A World Trade Organisation (WTO) agreement which aims to mutually recognise open government procurement amongst its members. |
| GPP | Green Public Procurement is process where public authorities seek to source goods, services or works with a reduced environmental impact. |
I
ITT
| Invitation to Tender See also ‘Tender Documentation’. All the documentation related to the tendering process. |
| IPP | Invitation to Provide a Proposal. This can be similar or the same as an Invitation to Tender (ITT) or a less formal process. |
| IPR | Intellectual property rights These rights include industrial property rights (e.g. patents, industrial designs and trademarks), copyright (rights of the author or creator) and related rights (rights of performers, producers and broadcasting organisations). |
J
| Just-in-Time (JIT) | An inventory management strategy where materials are ordered and received only as they are needed in the production process. |
K
| KICs | Knowledge and innovation communities. Partnership between stakeholders in the innovation process (higher education institutions, research organisations, companies, etc.) There are currently 6 KICs: Climate-KIC EIT Digital KIC InnoEnergy EIT Health EIT Raw Materials EIT Food See: KIC webpage. |
| KPI | Key Performance Indicator |
L
| Lead Time | The time taken between the initiation of a process and its completion, often referring to the time from placing an order to receiving the goods. |
| LETTER OF ACCEPTANCE | A letter that creates an immediate binding contractual relationship between the purchaser and the successful tenderer prior to entering a formal contract. |
| LETTER OF INTENT / LETTER OF AWARD | A letter informing a successful tenderer that it is the purchaser’s intention to enter a contract with them in the future. However, there is no liability created regarding that future contract. |
| LGOPC | Local Government Operational Procurement Centre |
| LIFE CYCLE COSTS | These are the costs incurred in producing a good or service, the delivery of the good or service and any post deliver costs including disposal |
| LIGHT TOUCH TENDERS | The Light Touch Regime (LTR) outlines specific rules for certain service contracts, that are generally of lower interest to cross-border competition. |
M
| MEAT | Most Economically Advantageous Tender. |
| METHOD STATEMENT | A statement which describes how the goods, services, or works will be delivered. |
| MI | Management Information. Data or statistics used to inform your contract/supplier decisions. |
N
| NEGOTIATED PROCEDURE | Parties of choice are consulted for negotiations, however, this may only be used in very special circumstances as set out in Articles 30 and 31 of the Directives. |
O
| OGP | Office of Government Procurement |
| OHSS | Occupational Health and Safety |
OJEU
| Official Journal of the European. Formerly OJEC (Official Journal of the European Community). |
| OPEN TENDERS | Contract for which any organisation can tender. |
| OPEN PROCEDURE | A single stage approach where all interested parties may submit tenders. |
P
| PFI | Private Finance Initiative. Private sector investment into public sector projects (e.g. hospitals). It provides a way of funding major capital investments, without immediate recourse to the public purse |
| PIN | Prior Information Notice. This is a notice published in OJEU that signals the intent to publish a contract notice or invitation to tender |
| PO | Purchase Order |
| Portal | Websites used by authorities for Electronic Tendering. |
| PQQ | Pre-Qualification Questionnaire |
| PROCUREMENT | The buying of goods, services or works required by an organisation |
| PROCUREMENT OFFICER | Normally the name given to the role/person who is a buyer in a public sector organisation |
| PROCURE-TO-PAY (P2P) | An integrated system that fully automates the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services. |
| PROCUREMENT REGULATIONS | Rules that affect public sector procurement and tenders including thresholds. |
| PSWT | Professional Service Withholding Tax (PSWT) is a tax on Professional Services at source in respect of relevant payments by Accountable Persons, to Specified Persons in relation to the provision of professional services. |
| PTN | Post Tender Negotiation. Can be used in an open or resticted procedure to refine preferred bid(s). |
PUBLIC PROCUREMENT
| Public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies. |
PUBLIC CONTRACT
| A contract for the provision of works, supplies or services to a contracting authority. It includes all procurements, not just those which are undertaken on the basis of a full tendering process and formal signing of a contract |
Q
| QUALIFICATION CRITERIA | exhaustive criteria (set out in Articles 45 to 48 of Directive 2004/18/EC) to be used in pre-qualifying / pre-selecting candidates who are invited to submit tenders. The criteria relate to a candidate’s professional conduct and standing, professional or technical expertise, financial or economic standing, general capacity and competency. |
| QUOTATION | An offer made by a supplier which details the cost of providing the required goods, works or services. |
R
| R&D | Research and Development |
| REVERSE AUCTION | A type of auction where suppliers bid lower prices to win a contract, often conducted electronically. |
| RESERVED CONTRACT | A contract which can only be supplied by a Supported Business or Businesses. |
| RESTRICTED TENDER / RESTRICTED PROCEDURE | Contract for which organisations must pre-qualify in order to be given the opportunity to tender. |
| RFI | Request for Information. |
| RFP | A document soliciting proposals from potential suppliers, detailing the requirements and criteria for selection. |
| RFQ | Request for Quotation. |
| RFT | Request for tender. |
S
| SERVICE CONTRACT | A contract that specifically outlines the terms of service delivery, including scope, performance metrics, and responsibilities. |
| SHORTLIST | A list of suitable prospective suppliers that has been drawn up through a preliminary evaluation exercise. |
| SLA | Service Level Agreement. A mechanism for helping a service provider and its customers achieve a shared understanding about services and service delivery. |
| SME | Small or Medium-Sized Enterprise. A micro, small or medium-sized enterprise (business), as defined by EU Recommendation 2003/361. |
| SOCIAL IMPACT | When organisations use their buying power to generate social value above and beyond the value of the goods, services or construction being procured. |
| SPECIFICATION | The document detailing the requirements of the works/goods/services to be purchased |
| SPEND ANALYSIS | The process of analysing historical spending data to identify opportunities for cost savings and improved procurement strategies. |
| SPOE | Single Point of Enquiry. An impartial point of contact where suppliers can seek advice or raise concerns if they are dissatisfied with specific public procurement practices. |
| SQ | Selection Questionnaire. A set of questions designed to help buyers select the most suitable bidders to be invited to tender. |
| STAKEHOLDERS | People who have an interest in an organisation or project, for example investors, service users, partners etc. |
| STANDSTILL PERIOD OR “ALCATEL” | The period (between 10 and 15 days) between the decision to award a contract and signing the contract. The purpose of this period is to give unsuccessful bidders the opportunity to challenge the award if they believe there has been a breach of the procurement rules. |
| SUB-LOTS | In large, complicated tenders lots can be further broken down into sub-lots – this can be done based on geography, value, technical discipline etc |
| SUBCONTRACT | An agreement between a beneficiary and a subcontractor (that carries out project tasks for the beneficiary, without being directly supervised and without having a subordinate relationship). |
| SUBCONTRACTOR | A third party who has entered into an agreement with a beneficiary to carry out part of the project tasks. |
SUPPLY CHAIN
| The flow of resources into and out of the enterprise’s collective operations e.g. an IT supply chain is the flow of resources into and out of its IT operations. |
| SUPPLYGOV | Supply Gov is the Local Government Operational Procurement Centre (LGOPC) portal for procurement of Plant Hire and Minor Building Works, Civil works and associated material supplies. |
| SUSTAINABLE PROCUREMENT | The environmental, social, and economic issues that must be considered in procurement exercise to meet the Purchasing Authorities objectives. |
| SUPPLIER RELATIONSHIP MANAGEMENT (SRM) | The systematic approach to assessing suppliers’ contributions to the business, determining the strategic approach to each supplier, and planning and executing all interactions with suppliers. |
T
| TCO | Total Cost of Ownership. The purchase price and operating costs of an asset. |
| TED | Tenders Electronic Daily; the European Public Procurement Journal which contains all active procurement notices published in the Supplement of the Official Journal of the European Union. |
| TENDER / TENDERING | A formalised process of bidding for work or contracts. Purchasers seek the best price or value for money from a selection of prospective suppliers. See ITT. |
| TENDER DOCUMENTATION | A set of documents issued by a buyer, which normally includes a Business Questionnaire, Instructions to Tenderers, Contract Conditions, Specification, Pricing Document, Form of tender and Tenderers’ Responses, for the delivery of goods, services or works. |
| TENDER PROCESS | The official process of advertising a contract, inviting organisations to tender, evaluating the submissions received and awarding the contract. |
| TFEU | Treaty on the Functioning of the European Union (EU). One of the two treaties forming the constitution of the EU. |
| Terms of Reference (TOR) | A document detailing the objectives, scope, and structure of a project, used to guide procurement and project execution. |
| THREE-WAY MATCH | A process in procurement where the purchase order, receiving report, and supplier’s invoice are compared to ensure consistency before payment is made. |
| TOTAL COST OF OWNERSHIP (TCO) | An analysis to understand the full cost of a procurement decision, including acquisition, operation, maintenance, and disposal costs. |
| TUPE | Transfer of Undertakings (Protection of Employment) Regulations. The purpose of TUPE is to preserve continuity of employment and to safeguard employment rights of all employees whose employment transfers to a new employer as a result of a relevant transfer. |
V
| VALUE ANALYSIS | The process of evaluating a product’s function and identifying ways to improve value by either improving the function or reducing the cost |
| VARIABLE COST | Tender prices that are not fixed and/or have aspects thatc an vary within the advertised budget for the tender |
| VARIATION | Any alteration, modification, addition to or deletion of any requirement of the contract terms or specification |
| VFM | Value for Money |
W
| WHOLE LIFE COSTS | The total value attributed to a procurement decision. |