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.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

• Approval Process – The steps taken to review and approve a supplier’s proposal or bid.

B

• B2B (Business to Business) – Transactions or relationships between businesses, as opposed to between a business and an individual consumer.
• B2C (Business to Consumer) – Transactions between a business and individual consumers.
• B2G (Business to Government) – Businesses working with Government bodies and the wider public sector.
• BAFO (Best and Final Offer) – The final offer submitted by a bidder after negotiations.
• Best Value Criteria – The process of assessing a tender based on the best combination of cost, quality, and other factors.
• Bid Clarification – Requesting further details or explanations from a bidder to ensure full understanding of their proposal.
• Bid Decision Matrix – A tool used to evaluate whether to submit a bid based on strategic, financial, and operational factors.
• Bid Document Checklist – A list of required documents and materials to be submitted with a bid.
• Bid Management – The process of overseeing and coordinating all aspects of a bid from initial decision to submission.
• Bid Management System (BMS) – A software system used to manage and streamline the bidding process.
• 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.
• Bid Validation – The process of checking the compliance and accuracy of a bid before submission.
• Bid/No Bid Decision – The process of deciding whether to submit a bid for a particular opportunity based on strategic fit and resource availability.
• Bidder – A person or company submitting a tender in response to a procurement process.
• Bidder Qualification – The process of evaluating the suitability of a potential supplier to meet a contract’s requirements.
• Bidder’s Conference – A meeting where bidders can ask questions and clarify requirements before submitting a bid.

C

• Call-Off Contract – A contract awarded within a framework agreement where the buyer places an order for goods or services.
• Commercial Proposal – A detailed offer outlining the terms, conditions, and pricing for goods or services.
• Commercial Terms – The agreed terms relating to pricing, payment, delivery, and other key aspects of a contract.
• Competitive Procedure with Negotiation – A procurement procedure where bidders are invited to submit offers, followed by negotiations.
• Competitive Tendering – A process where multiple suppliers submit bids to compete for a contract.
• Conditional Acceptance – Acceptance of a proposal or offer contingent on certain conditions being met.
• Consortium – A group of businesses or organisations working together on a project, often to bid for a contract.
• Contract Award Notice – A formal notice published to announce the awarding of a contract to a supplier.
• Contract Compliance – Ensuring that both the buyer and supplier adhere to the terms and conditions outlined in the contract.
• Contract Execution – The formal process of signing and finalising a contract after agreement on terms.
• Contract Extension – The process of extending a contract term beyond its original expiration date.
• Contract Terms – The specific conditions under which a contract is awarded and carried out.
• Contracting Authority – A public body or organisation responsible for purchasing goods or services under the procurement process.
• Contracting Entity – The party entering into a contract, typically referring to the buyer or purchaser.
• Corporate Governance – The system of rules, practices, and processes by which a company is directed and controlled.
• Cost Structure – The breakdown of costs involved in delivering a contract, including direct and indirect expenses.
• CPV (Common Procurement Vocabulary) – A system of codes used to standardise the description of procurement needs across the EU.
• CSR (Corporate Social Responsibility) – A company’s commitment to social, environmental, and ethical practices beyond just profit-making.
• CTA (Call to Action) – A prompt used to encourage the reader to take a specific action, such as submitting a proposal.

D

• Deliverable – A tangible or intangible item or service that is produced as a result of completing a project or contract.
• Due Diligence – The process of investigating a potential supplier’s financial stability, capabilities, and compliance before entering into a contract.

E

• E-Sourcing – The use of digital tools and platforms to manage the procurement process.
• Eligibility Criteria – The basic requirements suppliers must meet to be considered for a tender.
• EOI (Expression of Interest) – A document submitted by a supplier to express their interest in participating in a tender process.
• Escalation Clause – A provision in a contract that allows for changes in terms or conditions under specific circumstances.
• Evaluation Matrix – A tool used to assess and compare proposals based on specific criteria.
• Exclusion Criteria – The criteria used to reject suppliers who do not meet the basic requirements for a contract.

F

• Financial Standing – A measure of a supplier’s financial stability, often assessed during the procurement process.
• Framework Agreement – A long-term agreement between suppliers and buyers, setting terms and conditions for future contracts.
• Framework Lot – A subdivision of a framework agreement, used to group similar types of goods or services.

G

• GPA (Government Procurement Agreement) – An international agreement that ensures equal access to procurement markets for signatories.

I

• Incentive Clause – A provision in a contract designed to motivate a supplier to meet specific performance targets.
• Initial Contract Value – The expected value of a contract based on the initial term, excluding options or extensions.
• Insolvency – The inability of a company to meet its financial obligations, which could affect its ability to deliver on contracts.
• Integrated Supply Chain – A supply chain where all parties, from suppliers to end-users, work closely together to optimise efficiency.
• Invoice Verification – The process of confirming that an invoice is accurate and aligns with the terms of the contract.
• ITT (Invitation to Tender) – A formal invitation for suppliers to submit a proposal in response to a procurement opportunity.

J

• JV (Joint Venture) – A business arrangement where two or more parties collaborate to work on a specific project.

K

• KPIs (Key Performance Indicators) – Metrics used to evaluate the success and performance of a contract or project.

L

• Legal and Regulatory Compliance – Ensuring that procurement activities comply with relevant laws, policies, and regulations.
• Liquidated Damages – Pre-agreed compensation that a supplier must pay if they fail to meet contract obligations.
• LOA (Letter of Acceptance) – A formal letter confirming the acceptance of a supplier’s bid and the award of the contract.
• LOI (Letter of Intent) – A preliminary document outlining the intentions of the parties involved before a formal contract is signed.
• Lotting Strategy – The process of dividing a large contract into smaller lots, which may be awarded separately to different suppliers.

M

• Mandatory Requirements – Non-negotiable requirements that a supplier must meet to be considered eligible for a contract.
• Market Testing – The process of testing supplier interest and market readiness before launching a tender process.
• MAT (Most Advantageous Tender) – Similar to MEAT but may involve a broader evaluation of value beyond just price and quality.
• Material Deviation – A significant change or deviation from the contract or tender terms.
• MEAT (Most Economically Advantageous Tender) – The tender process that evaluates proposals based on both price and quality criteria.
• Method Statement – A document explaining the methods and procedures for carrying out a task, often required in construction or complex projects.

N

• 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.

O

• OJEU (Official Journal of the European Union) – A publication used to advertise public sector procurement opportunities in the EU.

P

• Payment Terms – The conditions under which a supplier will be paid, including timing and methods of payment.
• Performance Bond – A guarantee from the supplier to complete the contract as agreed; often required in construction contracts.
• PME (Pre-Tender Market Engagement) – Initial engagement with potential suppliers to assess the market before tendering.
• Post-Contract Monitoring – The process of reviewing a contract’s performance after it has been awarded.
• Post-Tender Negotiation – The process of negotiating terms after the tender has been submitted, often to finalise contract details.
• PQQ (Pre-Qualification Questionnaire) – A document used to assess a supplier’s capabilities and eligibility before inviting them to submit a tender.
• Pre-Contract Negotiations – Discussions held with suppliers before finalising the contract terms and conditions.
• Prequalification – The process of assessing suppliers’ suitability before inviting them to submit a full proposal.
• Price Cap – The maximum price a buyer is willing to pay for a product or service.
• Procurement Compliance – Ensuring that procurement activities align with relevant laws, policies, and ethical standards.
• Procurement Cycle – The stages involved in the procurement process, from identifying needs to contract award.
• Procurement Framework – A predefined set of terms and conditions under which multiple contracts can be awarded over time.
• Procurement Law – The body of laws and regulations governing the process of purchasing goods, services, and works.
• Procurement Pathways – The specific methods and processes used to award contracts, such as competitive tendering.
• Procurement Regulations – The rules and procedures governing procurement activities, often set by government or industry standards.
• Procurement Risk Management – The process of identifying, assessing, and mitigating risks in procurement activities.
• Procurement Strategy – A comprehensive plan that defines how an organisation will acquire goods, services, or works.
• Project Milestones – Key achievements or events that mark the progress of a project.
• Proposal Evaluation – The process of reviewing and assessing proposals to determine the best supplier.
• PSL (Preferred Supplier List) – A list of suppliers pre-approved for future procurement opportunities based on past performance and other criteria.
• PSQ (Procurement Specific Questionnaire) – The new route for pre-qualifying public sector suppliers (replacing the SQ).
• Public Sector Procurement – The process through which public sector organisations acquire goods, services, or works.
• Purchase Order – A document issued by a buyer to a supplier to formally request goods or services.
• Purchasing Card – A payment method used by businesses to simplify small or low-value procurement transactions.

R

• Request for Tender (RFT) – A document sent by an organisation to suppliers, requesting bids for a specific product or service.
• RFI (Request for Information) – A preliminary request used to gather information from suppliers before issuing a formal RFP.
• RFP (Request for Proposal) – A formal request issued by an organisation to invite proposals from suppliers.
• RFQ (Request for Quote) – A request issued to suppliers to submit a price quote for specified goods or services.
• Risk Assessment – The process of identifying and evaluating potential risks in a project or procurement process.
• Risk Mitigation – The steps taken to reduce or eliminate the impact of risks identified during the procurement process.

S

• Service Provider – A company or individual that delivers services under a contract.
• SLA (Service Level Agreement) – A contract outlining the level of service a supplier must provide, often including performance metrics.
• SME (Subject Matter Expert) – An expert in a particular area who provides detailed knowledge to support the bidding process.
• 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.
• Sourcing Strategy – The plan developed to identify, assess, and select suppliers to meet organisational needs.
• SOW (Statement of Work) – A document that defines the scope of work, deliverables, timelines, and responsibilities for a project.
• SQ (Selection Questionnaire) – A document used to assess suppliers’ qualifications and capabilities as part of the selection process.
• SSQ (Standard Selection Questionnaire) – A standardised form used in public procurement to assess suppliers’ qualifications.
• Standstill Period – The time between notifying the selected bidder and finalising the contract to allow for challenges.
• Strategic Sourcing – The process of continuously evaluating and managing procurement activities to achieve optimal value.
• Subcontractor – A supplier or service provider hired by the main contractor to perform specific tasks on a project.
• Submittals – Documents or samples submitted by a supplier to demonstrate compliance with contract requirements.
• Supplier Diversity – The practice of sourcing goods and services from a variety of suppliers, particularly those from underrepresented groups.
• Supplier Performance Review – An evaluation of a supplier’s performance during or after the contract to ensure compliance and quality.
• Supplier Registration – The process by which a supplier is entered into a system or list to be considered for future contracts.
• Supplier Selection – The process of evaluating potential suppliers and selecting the one who best meets the requirements.
• Supply Chain – The network of suppliers, manufacturers, and distributors that deliver products or services.
• Sustainability – The practice of ensuring that procurement activities have minimal negative environmental or social impacts.
• Sustainability Reporting – The process of disclosing the environmental, social, and economic impacts of procurement activities.

T

• Tender Evaluation Panel – A group of experts tasked with reviewing and scoring tenders based on the evaluation criteria.
• Tender Management – The process of managing the tendering process from start to finish.
• Tender Opening – The event where submitted bids or tenders are formally opened and evaluated.
• Tender Portals – Online platforms where procurement opportunities are posted and bids are submitted electronically.
• Tender Requirements – Specific criteria or conditions a supplier must meet to submit a valid tender.
• Tender Response – A formal submission by a supplier detailing how they will meet the requirements of a tender.
• 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.
• TUPE (Transfer of Undertakings (Protection of Employment) regulations) – Law that protects employees' rights when businesses transfer contracts.

U

• USP (Unique Selling Proposition) – The unique benefits or features of a product or service that differentiate it from competitors.

V

• VFM (Value for Money) – The balance of cost, quality, and sustainability to ensure procurement activities are cost-effective and meet buyer needs.

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

Procurement Terms Explained for Tender Writers

Procurement and tendering come with a vast range of terms, acronyms, and industry-specific language that can be overwhelming, even for experienced bid writers. This ultimate guide explains key procurement terms clearly and practically, helping you navigate tenders with confidence. If you need further advice or support, contact us today.