Not sure what an RFP or eTendering means? Our glossary breaks down complex procurement jargon into plain language, so you can focus on making better decisions with confidence.
A public contract whose value exceeds the financial threshold at which EU-wide procurement rules apply. Such contracts must be formally tendered according to EU directives and published in the Official Journal of the EU (OJEU). Contracts below this threshold follow national procurement rules.
An official update or amendment to the tender documents. Addenda are issued by the contracting authority to clarify, correct, or change the requirements or conditions of a tender before the submission deadline. Bidders should acknowledge and incorporate all addenda in their bids.
An offer that proposes a different approach or solution than what was originally requested in the tender. Also known as a variant bid, it often provides an innovative or cost-effective alternative to meet the buyer’s needs. Alternative bids are only considered if the tender explicitly allows variants.
The act of selecting a winner in a procurement process and granting them the contract. The award decision is made after evaluating all valid bids against the stated criteria. Once an award is made, the contracting authority will notify all participants of the outcome and move toward signing a contract with the winning bidder.
The set of factors on which the contracting authority bases its decision to choose the winning tender. In most cases the award criteria follow the MEAT (Most Economically Advantageous Tender) principle – a combination of price and quality considerations. For example, criteria can include cost, technical quality, delivery time, sustainability, etc., with relative weightings. These criteria must be linked to the contract’s subject and disclosed in advance.
A public announcement that a contract has been awarded. In the EU, this is published in the OJEU (via the TED portal) after the contract is awarded, indicating details like the winning supplier and contract value. The award notice provides transparency about who won the tender and is often abbreviated as CAN.
The company or bidder who has won the tender and will be awarded the contract. In other words, the awardee is the supplier whose offer was selected as the best and who will sign the contract with the buyer. Synonyms for this term are also contractor or winning bidder.
In a negotiated procurement, the final proposal submitted by a bidder after one or more rounds of negotiation. A BAFO represents the bidder’s most favorable terms (best price and conditions) that they can offer. Once best and final offers are submitted, the expectation is that no further negotiations will occur and an award decision will be made.
A public contract whose value is below the set EU threshold for mandatory OJEU publication. Such tenders follow simplified national or local procedures and do not require EU-wide advertisement.
A proposal or tender submitted by a supplier in response to a call for competition. A bid outlines how the supplier will meet the requirements and at what price. In public procurement, submitting a bid means the company is competing for a contract by offering to supply certain goods, services, or works.
A form of financial security that a bidder may be required to provide when submitting a tender. It guarantees that the bidder will not withdraw their bid or refuse to sign the contract if awarded. If the bidder breaches these conditions, the bid bond (often a cash deposit or bank guarantee) can be claimed by the contracting authority as compensation. Bid bonds protect the buyer from the risk of a selected bidder backing out.
The official process of opening and registering all bids received by the deadline. In a traditional tender, this may be a public meeting or an administrative procedure right after the submission deadline, where the buyer records each bid (and sometimes reads out key information like price). The bid opening ensures transparency that no late bids are considered and that all submissions are accounted for.
A form of collusion in which competing suppliers conspire to manipulate the outcome of a tender. This anti-competitive practice might involve bidders secretly agreeing on who will win (for example, some suppliers may refrain from bidding or submit artificially high bids). Bid rigging is illegal and undermines fair competition.
An individual company or consortium that submits a bid in a procurement process. Also called an offeror or tenderer, a bidder is any economic operator competing for the contract. Once a bidder is successful and wins, they become the contractor.
The overall process of preparing and submitting bids, and the act of participating in a tendering competition. “Bidding” can refer to the efforts by suppliers to win contracts (e.g. bidding for government contracts). It encompasses reviewing tender documents, preparing proposals, and submitting offers before the deadline.
An itemized list of materials, parts, labor, or services with their corresponding quantities, usually provided in construction or works tenders. Bidders use the BoQ to insert unit prices for each line item, which are then summed to form the total bid price. The Bill of Quantities defines the scope of work in detail and ensures all bidders price the same items, making price comparison easier.
In procurement terms, the purchasing entity – typically the contracting authority in public procurement. The buyer is the organization that wants to acquire goods, services, or works and publishes the tender. (For example, a government department or city council is the buyer in a public tender.)
A dedicated section on a contracting authority’s website or on an e-procurement portal where that authority publishes information about its procurements. A buyer profile can include procurement plans, prior information notices, live tenders, and past award notices. It is essentially the buyer’s online presence for all tender-related information, often mandated by EU rules for transparency.
A standardized classification system for public procurement contracts in the EU. Each type of goods, service, or work is assigned a numeric CPV code. Using CPV codes allows tenders to be categorized and easily searched, regardless of language. The CPV system creates a single classification scheme to describe procurement contracts, ensuring a common reference across all EU countries. Bidders often use CPV codes to find relevant tenders in their industry.
A general term for an invitation to submit bids for a contract. A call for tenders is typically published as a tender notice (e.g., a Contract Notice in the OJEU) and signals the start of a procurement procedure. It provides information about the contract and how interested suppliers can participate.
In the context of tenders, a clarification is a question or request raised (usually by a potential bidder) to better understand the tender documents or requirements. The contracting authority may also issue clarifications (often to all bidders) to explain or correct aspects of the tender. There is usually a deadline for bidders to submit clarification questions, and the answers are shared transparently so all bidders have the same information.
A situation in which a person involved in a public procurement has personal interests that could improperly influence their duties. For example, if a procurement officer’s family member works for a bidding company, that is a potential conflict of interest. Procurement rules require identifying, disclosing, and mitigating any conflicts to ensure the process is fair and impartial. Those with a severe conflict of interest should be excluded from decision-making to maintain integrity.
A group of two or more companies that join together to submit a joint bid in a tender. By pooling their resources and expertise, a consortium can tackle contracts that a single firm might not be able to handle alone. If the consortium wins, its members typically share the contract responsibilities according to their agreement. Also known as a joint venture for bidding purposes.
A legally binding agreement between the buying entity and the winning supplier. In public procurement, the contract stipulates all the terms and conditions for the supply of the goods, services, or works – including scope, price, delivery schedule, and rights and obligations of each party. The contract is formed after the tender is awarded and is the outcome of a successful procurement process.
The official notice published to announce the result of a procurement procedure. It discloses that the contract has been awarded, to whom, and often the value and a summary of the winning bid. Publishing a Contract Award Notice (CAN) is typically required for transparency after awarding an above-threshold contract.
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