Tendering Terminology - Lost in Translation

Getting Started

If you are looking for tendering opportunities with public sector buyers, you might encounter some government tenders that seem appealing but also confusing. Sometimes, buyers use terminology that is not very clear or easy to follow, making the tendering process more challenging and frustrating than it needs to be.

Whether you are new to public sector tendering or just need a refresher, we have compiled a list of some of the most common tendering jargon and what they mean. This will help you understand the requirements and expectations of buyers, increasing your chances of winning public sector contracts.

Tender Jargon Glossary

Approved List
An eligible list of potential suppliers.

Consortia
A group of organisations.

Contract Award Notice
Notification of the award of a contract, including successful supplier details and duration of contract.

Contract Notice
Invitation to tender for Works, Supplies or Services.

CPV Codes
Common Procurement Vocabulary – industry classification system. For a comprehensive list please go to: http://simap.europa.eu/codes-and-nomenclatures/codes-cpv/codes-cpv_en.htm

EOI
Expression of Interest – responses of interest from suppliers.

Framework Agreement
An agreement with suppliers which set out terms and conditions under which specific call-offs (purchases) can be made throughout the term of the agreement (can also be referred to as a Call off Contract)

ITT
Invitation to Tender – an invitation to suppliers to bid for the provision of works, goods or services.

MEAT
Most Economically Advantageous Tender – the basis for the award of any contract not being awarded on lowest price. If the purchaser is awarding a contract based on MEAT, they must also specify the criteria and weightings that they will apply to this judgement.

OJEU
Official Journal of the European Union – formerly known as OJEC (Official Journal of the European Community).

OGC
The Office of Government Commerce – an independent office of HM Treasury, established to help Government deliver best value from its spending.

PFI
Private Finance Initiative – a partnership between the public and private sector which is used for high risk / high value contracts.

PIN
Prior Information Notice – advance notice of contracts which will be placed mainly for items of major expenditure.

PPP
Public Private Partnership – very similar to a PFI arrangement, but the aim is centered more on service delivery rather than finance.

PQQ
Pre-Qualification Questionnaire – this document is used in a restricted procedure tendering process where the responses are used to shortlist suppliers.

RFQ
Request for Quotation

Shortlist
A list of suppliers that have been successful in meeting the requirements of a pre-qualification questionnaire.

SLA
Service Level Agreement – enforcing the KPIs (Key Performance Indicators) of the Contract.

Specification
The document used to establish the requirements for the goods or services being purchased.

Standstill Period
Sometimes referred to as the ‘Alcatel Period’ – the contracting authority must allow a period of 10 days between the date suppliers are notified about the outcome of the tender process and the date that they sign the contract or framework agreement. This allows unsuccessful bidders to request a review of an award decision from the relevant contracting authority.

Supplementary Vocabulary
Designed to describe the subject matter of CPV Codes – a more refined classification.

Tender Notice Procedure Types:

Competitive Dialogue
Used only for particularly complex contracts – i.e. where you are unable to define the technical means or the legal/financial make-up (preferred option for PFI/PPP contracts).

Negotiated Procedure
Use reserved for exceptional circumstances only, i.e. failure of a previous procedure, where no pricing structure can be set, for some services which cannot be adequately specified and some research & development contracts.

Open Procedure
Tenders invited from all interested parties.

Restricted Procedure
Tenders invited from providers meeting the requirements of the pre-qualification questionnaire.

Thresholds
The EU sets financial thresholds over which all public sector contracts must be advertised. For more guidance on thresholds please go to: http://www.tendersdirect.co.uk/Help/Threshholds.aspx

TUPE
The 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.