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.
The advertisement that launches a public procurement procedure, providing details about the contract opportunity. In the EU, contract notices for above-threshold procurements are published in the Supplement to the OJEU via TED. A Contract Notice includes information like the description of the contract, eligibility criteria, deadlines, and how to obtain tender documents (it’s essentially the “tender announcement”).
In procurement usage, “the contractor” refers to the supplier that has been awarded the contract. It is essentially the successful bidder who enters into the contract to deliver the goods/services/works. Note: In works/construction, “contractor” often specifically means the construction company carrying out the works.
A completely electronic procurement system used for commonly purchased goods, services, or works. A DPS is like an open framework agreement: suppliers can join at any time if they meet the criteria. The system has two stages – a first stage where all eligible suppliers are admitted to the DPS, and a second stage where the buyer invites all DPS members (or relevant category members) to submit bids for specific contracts. Unlike a closed framework, new vendors are not excluded from participating once a DPS is established.
The final date (and exact time) by which bids or requests to participate must be submitted. After this cutoff, no late bids are accepted. The deadline is strictly enforced to ensure fairness – all bidders have the same amount of time to prepare their offers. Also called the closing date for the tender.
An action by an authority to exclude or ban a supplier from participating in procurements for a certain period. Suppliers may be debarred due to serious misconduct, fraud, or failure to perform on prior contracts. A debarred supplier is effectively blacklisted and cannot bid on government tenders until the debarment period ends (or they are rehabilitated through an appeal process).
The goods, services, or outputs that the contractor must deliver under the contract. Deliverables can be tangible (e.g. products, buildings) or intangible (e.g. reports, software, maintenance services) and are specified in the tender requirements. The quality and completion of deliverables as agreed is central to fulfilling the contract.
The awarding of a contract without a formal competitive tender process. In a direct award (also known as sole-source procurement), the contracting authority chooses a specific supplier and negotiates directly. This is only permitted under certain conditions (for example, extreme urgency or if only one supplier is capable of providing the goods/services). In general, public procurement prefers competition, so direct awards are exceptions.
A bidding event conducted online where bidders can adjust their offers (usually prices) in real time against each other. In procurement, a reverse auction format is common – suppliers bid prices down until the auction ends, and the lowest bid might win if it meets all requirements. E-auctions are used as a final stage in some tenders to drive prices to a market-competitive level under transparent conditions. (All bidders typically start from an acceptable proposal, then compete on price or other quantifiable factors in the e-auction.)
The use of electronic systems and the internet to conduct procurement processes. E-procurement can include publishing tender notices online, using electronic tendering platforms for bid submission, electronic auctions, and e-invoicing. Many governments use e-procurement platforms to increase efficiency and transparency. For example, the EU’s TED and many national tender portals are part of e-procurement.
A submission by a supplier indicating their interest in participating in a potential procurement. An EOI is usually a response to a call (such as a Request for Information or a pre-qualification notice) where the buyer seeks to gauge market interest or create a shortlist. It’s a preliminary step – an EOI is not a full bid, but rather information from the supplier to show they are interested and qualified for the upcoming opportunity.
A standardized self-declaration form used in EU procurements. The ESPD allows a bidder to declare that it meets the required selection criteria and has no grounds for exclusion, without needing to provide all certificates upfront. It streamlines the bidding process by serving as preliminary evidence of eligibility – the winning bidder will later have to provide the actual documents (e.g. certificates of no criminal conviction, financial statements). The ESPD is typically provided as an online form to fill out with the bid.
A formal term (used in EU law) meaning any business or individual who can offer works, supplies, or services on the market. It encompasses contractors, suppliers, vendors, service providers, etc. Essentially, an economic operator is a potential bidder or tenderer in a procurement process.
A group of officials or evaluators appointed by the contracting authority to assess the bids. The evaluation committee reviews each bid against the evaluation criteria (which include the award criteria and compliance with requirements) to determine which offer is the best. They typically score or rank bids and recommend or decide the award. The committee operates after the bid opening and ensures the process of selecting the winner is fair and according to the tender’s rules.
Reasons defined by law that disqualify a bidder from taking part in a tender. Exclusion grounds usually include things like criminal convictions for fraud or corruption, involvement in a cartel, bankruptcy or tax evasion, among others. If a bidder falls under any mandatory exclusion ground, the contracting authority must exclude them from the competition. Bidders declare the absence of such grounds in documents like the ESPD. These rules aim to prevent unfit or unethical suppliers from winning public contracts.
An “umbrella” agreement between a buyer (often one or more contracting authorities) and one or more suppliers, setting out the terms (especially price, quality, and quantity terms) under which specific purchases (“call-off” contracts) can be made during a given period. A framework itself is not a direct order, but a structure from which the buyer can place orders as needed. Framework agreements typically last up to 4 years in the public sector. No further competition is needed if a single supplier framework is used for call-offs; if multiple suppliers are on the framework, a mini-competition or rotation system may be used to award each call-off.
A plurilateral treaty under the World Trade Organization that opens up public procurement among its member countries. The GPA commits participating governments to treat suppliers from other member countries equally in certain high-value procurements, and to follow principles of transparency and fair competition. In practice, if a country (and a procurement) is covered by the WTO GPA, foreign businesses from other GPA countries can bid for those public contracts under agreed rules, similar to how EU companies can bid across EU member states.
In public procurement, goods refers to tangible products or materials to be supplied. This can range from office supplies and equipment to medical devices or vehicles. “Goods” contracts (sometimes called supplies contracts) are distinguished from services or works contracts – they involve purchasing physical items that can be delivered to the buyer.
The practice of integrating environmental considerations into public purchasing. In green procurement, authorities choose products, services, or works with a reduced environmental impact throughout their life-cycle. For example, including criteria for energy efficiency, recycled content, or low emissions in a tender is GPP. This is a component of sustainable procurement, aiming to use the government’s buying power to support environmental goals.
A special EU procurement procedure designed for cases where the buyer needs an innovative product or solution that is not available on the market yet. The procedure allows the contracting authority to select one or more partners to research and develop a new solution collaboratively, and then purchase the resulting product or service from that partner if it meets the needs. Essentially, it combines R&D with procurement – the authority “partners” with a provider to innovate and then implements the innovation.
A formal invitation to qualified suppliers to submit a bid for a contract. In an open procedure, the contract notice itself serves as an open invitation. In a two-stage process (like a restricted procedure), only the shortlisted candidates receive the ITT. The ITT usually comes as a document (or set of documents) that includes all instructions for preparing the tender, the specifications, criteria, and deadlines. (Sometimes also called Request for Tender or Call for Tender.)
In procurement, this refers to an association of businesses that team up to submit a bid together – essentially the same as a consortium. The JV members agree to jointly fulfill the contract if they win, each contributing skills or capacity. This approach is often used if the contract scope is too large or diverse for one firm alone. A joint venture might be formalized as a new legal entity or operate under a cooperation agreement. In any case, the tender usually requires JV bidders to designate a lead partner and collectively meet the requirements. See also: Consortium.
A situation where two or more contracting authorities collaborate to conduct a procurement together. They issue one combined tender for their collective needs, rather than separate tenders. Joint procurement can lead to economies of scale and reduced administrative cost – for example, several hospitals might do a joint procurement of medical supplies under one lead buyer. In a joint tender, one notice is published on behalf of all participating authorities, and it results in one set of contract awards covering all participants.
A specific metric used to measure the performance of the contractor during the execution of a contract. KPIs are set in the contract (often as part of a Service Level Agreement) to track critical aspects of service delivery or product performance. For example, a KPI in an IT services contract might be “system uptime percentage” or in a cleaning contract “number of complaints per month”. KPIs enable the buyer to objectively assess if the contractor is meeting the agreed service levels.
A preliminary letter from a buyer indicating an intention to enter into a contract with a certain bidder, usually pending final negotiations or formalities. While not a binding contract, it shows the supplier that they are the preferred candidate. A Letter of Intent might be used to allow the supplier to start some preparatory work or to reserve resources while the final contract is being drawn up or approved.
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