Bidding & Procurement Keywords

Procurement Keywords, Terms & Acronyms

This is a list of short and simple definitions for all things bidding, procurement and tendering. For further advice or support, contact us today.

• PME (Pre-Tender Market Engagement) – Initial engagement with potential suppliers to assess the market before tendering.
• PSQ (Procurement Specific Questionnaire) - The new route for pre-qualifying public sector suppliers (replacing the SQ).
• Bidder Qualification – The process of evaluating the suitability of a potential supplier to meet a contract’s requirements.
• Bid Clarification – Requesting further details or explanations from a bidder to ensure full understanding of their proposal.
• PQQ (Pre-Qualification Questionnaire) – A document used to assess a supplier’s capabilities and eligibility before inviting them to submit a tender.
• Bidder – A person or company submitting a tender in response to a procurement process.
• Competitive Procedure with Negotiation – A procurement procedure where bidders are invited to submit offers, followed by negotiations.
• RFI (Request for Information) – A preliminary request used to gather information from suppliers before issuing a formal RFP.
• Strategic Sourcing – The process of continuously evaluating and managing procurement activities to achieve optimal value.
• Consortium – A group of businesses or organisations working together on a project, often to bid for a contract.
• Bid Decision Matrix – A tool used to evaluate whether to submit a bid based on strategic, financial, and operational factors.
• PSL (Preferred Supplier List) – A list of suppliers pre-approved for future procurement opportunities based on past performance and other criteria.
• Procurement Framework – A predefined set of terms and conditions under which multiple contracts can be awarded over time.
• RFP (Request for Proposal) – A formal request issued by an organisation to invite proposals from suppliers.
• CPV (Common Procurement Vocabulary) – A system of codes used to standardise the description of procurement needs across the EU.
• Purchasing Card – A payment method used by businesses to simplify small or low-value procurement transactions.
• Standstill Period – The time between notifying the selected bidder and finalising the contract to allow for challenges.
• Framework Agreement – A long-term agreement between suppliers and buyers, setting terms and conditions for future contracts.
• Supplier Diversity – The practice of sourcing goods and services from a variety of suppliers, particularly those from underrepresented groups.
• Legal and Regulatory Compliance – Ensuring that procurement activities comply with relevant laws, policies, and regulations.
• RFQ (Request for Quote) – A request issued to suppliers to submit a price quote for specified goods or services.
• MEAT (Most Economically Advantageous Tender) – The tender process that evaluates proposals based on both price and quality criteria.
• MAT (Most Advantageous Tender) – Similar to MEAT but may involve a broader evaluation of value beyond just price and quality.
• Sourcing Strategy – The plan developed to identify, assess, and select suppliers to meet organisational needs.
• Best Value Criteria – The process of assessing a tender based on the best combination of cost, quality, and other factors.
• Commercial Proposal – A detailed offer outlining the terms, conditions, and pricing for goods or services.
• Financial Standing – A measure of a supplier’s financial stability, often assessed during the procurement process.
• Supplier Registration – The process by which a supplier is entered into a system or list to be considered for future contracts.
• Pre-Contract Negotiations – Discussions held with suppliers before finalising the contract terms and conditions.
• Performance Bond – A guarantee from the supplier to complete the contract as agreed; often required in construction contracts.
• SOW (Statement of Work) – A document that defines the scope of work, deliverables, timelines, and responsibilities for a project.
• Bid Management System (BMS) – A software system used to manage and streamline the bidding process.
• SME (Subject Matter Expert) – An expert in a particular area who provides detailed knowledge to support the bidding process.
• Bid/No Bid Decision – The process of deciding whether to submit a bid for a particular opportunity based on strategic fit and resource availability.
• VFM (Value for Money) – The balance of cost, quality, and sustainability to ensure procurement activities are cost-effective and meet buyer needs.
• Bid Management – The process of overseeing and coordinating all aspects of a bid from initial decision to submission.
• Procurement Law – The body of laws and regulations governing the process of purchasing goods, services, and works.
• Contracting Authority – A public body or organisation responsible for purchasing goods or services under the procurement process.
• ITT (Invitation to Tender) – A formal invitation for suppliers to submit a proposal in response to a procurement opportunity.
• Approval Process – The steps taken to review and approve a supplier’s proposal or bid.
• Mandatory Requirements – Non-negotiable requirements that a supplier must meet to be considered eligible for a contract.
• Request for Tender (RFT) – A document sent by an organisation to suppliers, requesting bids for a specific product or service.
• Social Value – The contribution to society, such as employment, training, or sustainability goals, that a supplier can offer in addition to the service or product.
• Sustainability Reporting – The process of disclosing the environmental, social, and economic impacts of procurement activities.
• Call-Off Contract – A contract awarded within a framework agreement where the buyer places an order for goods or services.
• Cost Structure – The breakdown of costs involved in delivering a contract, including direct and indirect expenses.
• Framework Lot – A subdivision of a framework agreement, used to group similar types of goods or services.
• KPIs (Key Performance Indicators) – Metrics used to evaluate the success and performance of a contract or project.
• Procurement Regulations – The rules and procedures governing procurement activities, often set by government or industry standards.
• Commercial Terms – The agreed terms relating to pricing, payment, delivery, and other key aspects of a contract.
• Conditional Acceptance – Acceptance of a proposal or offer contingent on certain conditions being met.
• Bid Strategy – The overall approach or plan for responding to a procurement opportunity.
• Bid Submission Deadline – The final date by which a bid or proposal must be submitted to the buyer.
• Procurement Compliance – Ensuring that procurement activities align with relevant laws, policies, and ethical standards.
• Proposal Evaluation – The process of reviewing and assessing proposals to determine the best supplier.
• Due Diligence – The process of investigating a potential supplier’s financial stability, capabilities, and compliance before entering into a contract.
• Method Statement – A document explaining the methods and procedures for carrying out a task, often required in construction or complex projects.
• CSR (Corporate Social Responsibility) – A company’s commitment to social, environmental, and ethical practices beyond just profit-making.
• Corporate Governance – The system of rules, practices, and processes by which a company is directed and controlled.
• USP (Unique Selling Proposition) – The unique benefits or features of a product or service that differentiate it from competitors.
• OJEU (Official Journal of the European Union) – A publication used to advertise public sector procurement opportunities in the EU.
• Risk Assessment – The process of identifying and evaluating potential risks in a project or procurement process.
• Bidder’s Conference – A meeting where bidders can ask questions and clarify requirements before submitting a bid.
• Invoice Verification – The process of confirming that an invoice is accurate and aligns with the terms of the contract.
• Subcontractor – A supplier or service provider hired by the main contractor to perform specific tasks on a project.
• LOI (Letter of Intent) – A preliminary document outlining the intentions of the parties involved before a formal contract is signed.
• Deliverable – A tangible or intangible item or service that is produced as a result of completing a project or contract.
• Supplier Selection – The process of evaluating potential suppliers and selecting the one who best meets the requirements.
• Sustainability – The practice of ensuring that procurement activities have minimal negative environmental or social impacts.
• Contract Terms – The specific conditions under which a contract is awarded and carried out.
• Post-Contract Monitoring – The process of reviewing a contract’s performance after it has been awarded.
• SQ (Selection Questionnaire) – A document used to assess suppliers’ qualifications and capabilities as part of the selection process.
• Tender Opening – The event where submitted bids or tenders are formally opened and evaluated.
• E-Sourcing – The use of digital tools and platforms to manage the procurement process.
• Prequalification – The process of assessing suppliers’ suitability before inviting them to submit a full proposal.
• Incentive Clause – A provision in a contract designed to motivate a supplier to meet specific performance targets.
• SSQ (Standard Selection Questionnaire) – A standardised form used in public procurement to assess suppliers’ qualifications.
• TOR (Terms of Reference) – A document outlining the purpose, scope, and objectives of a project.
• Total Contract Value – The total financial value of a contract, including all phases and potential extensions.
• Tender Management – The process of managing the tendering process from start to finish.
• Risk Mitigation – The steps taken to reduce or eliminate the impact of risks identified during the procurement process.
• Material Deviation – A significant change or deviation from the contract or tender terms.
• CTA (Call to Action) – A prompt used to encourage the reader to take a specific action, such as submitting a proposal.
• Insolvency – The inability of a company to meet its financial obligations, which could affect its ability to deliver on contracts.
• Bid Validation – The process of checking the compliance and accuracy of a bid before submission.
• Bid Document Checklist – A list of required documents and materials to be submitted with a bid.
• LOA (Letter of Acceptance) – A formal letter confirming the acceptance of a supplier’s bid and the award of the contract.
• Evaluation Matrix – A tool used to assess and compare proposals based on specific criteria.
• Procurement Risk Management – The process of identifying, assessing, and mitigating risks in procurement activities.
• Submittals – Documents or samples submitted by a supplier to demonstrate compliance with contract requirements.
• Integrated Supply Chain – A supply chain where all parties, from suppliers to end-users, work closely together to optimise efficiency.
• Procurement Cycle – The stages involved in the procurement process, from identifying needs to contract award.
• Tender Evaluation Panel – A group of experts tasked with reviewing and scoring tenders based on the evaluation criteria.
• Eligibility Criteria – The basic requirements suppliers must meet to be considered for a tender.
• Escalation Clause – A provision in a contract that allows for changes in terms or conditions under specific circumstances.
• B2B (Business to Business) – Transactions or relationships between businesses, as opposed to between a business and an individual consumer.
• B2G (Business to Government) - Businesses working with Government bodies and the wider public sector.
• Liquidated Damages – Pre-agreed compensation that a supplier must pay if they fail to meet contract obligations.
• SLA (Service Level Agreement) – A contract outlining the level of service a supplier must provide, often including performance metrics.
• BAFO (Best and Final Offer) – The final offer submitted by a bidder after negotiations.
• Lotting Strategy – The process of dividing a large contract into smaller lots, which may be awarded separately to different suppliers.
• Project Milestones – Key achievements or events that mark the progress of a project.
• Payment Terms – The conditions under which a supplier will be paid, including timing and methods of payment.
• Competitive Tendering – A process where multiple suppliers submit bids to compete for a contract.
• Exclusion Criteria – The criteria used to reject suppliers who do not meet the basic requirements for a contract.
• Contract Award Notice – A formal notice published to announce the awarding of a contract to a supplier.
• Supplier Performance Review – An evaluation of a supplier’s performance during or after the contract to ensure compliance and quality.
• JV (Joint Venture) – A business arrangement where two or more parties collaborate to work on a specific project.
• B2C (Business to Consumer) – Transactions between a business and individual consumers.
• Contracting Entity – The party entering into a contract, typically referring to the buyer or purchaser.
• NDA (Non-Disclosure Agreement) – A legal agreement that prevents the sharing of confidential information.
• Negotiated Procedure – A procurement process where suppliers are invited to negotiate terms and prices after submitting an initial offer.
• Contract Execution – The formal process of signing and finalising a contract after agreement on terms.
• Initial Contract Value – The expected value of a contract based on the initial term, excluding options or extensions.
• EOI (Expression of Interest) – A document submitted by a supplier to express their interest in participating in a tender process.
• Contract Extension – The process of extending a contract term beyond its original expiration date.
• GPA (Government Procurement Agreement) – An international agreement that ensures equal access to procurement markets for signatories.
• Price Cap – The maximum price a buyer is willing to pay for a product or service.
• Tender Requirements – Specific criteria or conditions a supplier must meet to submit a valid tender.
• Tender Portals – Online platforms where procurement opportunities are posted and bids are submitted electronically.
• Service Provider – A company or individual that delivers services under a contract.
• Procurement Strategy – A comprehensive plan that defines how an organisation will acquire goods, services, or works.
• Contract Compliance – Ensuring that both the buyer and supplier adhere to the terms and conditions outlined in the contract.
• Tender Response – A formal submission by a supplier detailing how they will meet the requirements of a tender.
• Supply Chain – The network of suppliers, manufacturers, and distributors that deliver products or services.
• Public Sector Procurement – The process through which public sector organisations acquire goods, services, or works.
• Post-Tender Negotiation – The process of negotiating terms after the tender has been submitted, often to finalise contract details.
• Market Testing – The process of testing supplier interest and market readiness before launching a tender process.
• Purchase Order – A document issued by a buyer to a supplier to formally request goods or services.
• Procurement Pathways – The specific methods and processes used to award contracts, such as competitive tendering.
• TUPE (Transfer of Undertakings (Protection of Employment) regulations) - Law that protects employees' rights when businesses transfer contracts.

Across our website we have further detail on each of these terms.