Procurement Glossary: 50+ Essential Tender Terms Explained

Procurement has its own vocabulary. Understanding these terms helps suppliers and buyers communicate effectively and navigate tender processes confidently.

A

Award Criteria

The published standards against which tender submissions are evaluated. Typically includes quality (methodology, experience, resources) and price elements with specified weightings.

Award Notice

Public notification that a contract has been awarded, including supplier details and contract value. Required for transparency and market intelligence.

B

BAFO (Best and Final Offer)

A request for suppliers to submit their ultimate offer after initial tender evaluation or negotiation. Represents the final opportunity to improve submissions.

Benchmarking

Comparing prices, performance, or practices against market standards or other contracts to assess value for money.

C

Call-Off Contract

An order placed under a framework agreement for specific goods or services. Activates the framework terms for a particular requirement.

Clarification

A question from suppliers seeking explanation of tender requirements, or from buyers seeking explanation of submission content. Must be handled transparently.

Competitive Dialogue

A procurement procedure allowing structured discussion with shortlisted suppliers to develop solutions before final tender. Used for complex requirements.

Competitive Procedure with Negotiation

A procurement route allowing negotiation with suppliers on technical and commercial aspects before final submissions.

Compliance

Meeting mandatory requirements. Non-compliant submissions may be rejected without evaluation.

Consortium

Multiple suppliers bidding together as a joint venture or formal partnership to combine capabilities.

Contract Notice

Formal advertisement of a procurement opportunity, published on appropriate portals (Find a Tender, Contracts Finder).

CPV Codes (Common Procurement Vocabulary)

Standardised classification system for procurement categories, used to categorise and search for opportunities.

D

Debrief

Feedback provided to unsuccessful suppliers explaining their evaluation scores and relative standing.

DPS (Dynamic Purchasing System)

An electronic system for commonly used purchases, allowing new suppliers to join throughout its operation.

Due Diligence

Verification of supplier claims, capabilities, and standing before contract award.

E

E-Procurement

Electronic systems and processes for managing procurement activities, from advertising through contract management.

Evaluation Panel

The group of assessors responsible for scoring tender submissions against published criteria.

F

Framework Agreement

An agreement establishing terms for future call-off contracts over a defined period, typically up to four years.

FTS (Find a Tender Service)

The UK's official portal for advertising above-threshold public sector contracts.

G

Gate Review

Formal checkpoint assessing procurement readiness before proceeding to next stage.

Go/No-Go Decision

Strategic decision on whether to pursue a specific tender opportunity based on capability match and win probability.

I

ITT (Invitation to Tender)

Formal documentation inviting suppliers to submit tender responses, including specifications, terms, and evaluation criteria.

K

KPIs (Key Performance Indicators)

Measurable metrics used to assess supplier performance during contract delivery.

L

Lot

A division of requirements within a tender into separate packages, often by category, geography, or value band.

LCCI (London Chamber of Commerce and Industry)

Often referenced for contract terms or dispute resolution procedures.

M

MEAT (Most Economically Advantageous Tender)

Traditional evaluation approach considering quality and price to determine best overall value. Replaced in terminology by "Most Advantageous Tender" under Procurement Act 2023.

Mini-Competition

Streamlined competition among framework suppliers for a specific call-off requirement.

Moderation

Process of reaching consensus among evaluators on final tender scores.

O

OJEU (Official Journal of the European Union)

Historical publication for EU-wide tender notices. UK contracts now advertised on Find a Tender.

Open Procedure

Procurement route where any interested supplier can submit a tender response without pre-qualification stage.

P

PAS 91

Pre-qualification questionnaire standard for construction sector, ensuring consistent information requests.

PIN (Prior Information Notice)

Early notification of planned procurement, allowing suppliers to prepare before formal tender launch.

PPN (Procurement Policy Note)

Guidance issued by Cabinet Office on procurement policy and practice.

PQQ (Pre-Qualification Questionnaire)

Historical term for selection questionnaire used to shortlist suppliers before invitation to tender. Now called Selection Questionnaire (SQ).

R

Remedies Directive

EU legislation establishing challenge procedures for public procurement, still influential in UK law.

Restricted Procedure

Two-stage procurement where suppliers are first assessed against selection criteria before being invited to tender.

S

Selection Questionnaire (SQ)

Standardised questionnaire assessing supplier suitability based on capability, capacity, and compliance.

SME (Small and Medium Enterprise)

Businesses below defined size thresholds, often subject to government policies encouraging procurement participation.

Social Value

Additional community benefit generated through procurement choices, including employment, environmental, and local economic impacts.

Specification

Detailed description of requirements that suppliers must meet, typically focusing on outcomes rather than methods.

Standstill Period

Mandatory waiting period between award decision and contract signature, typically 10 days, allowing challenge.

T

Threshold

Financial value determining which procurement rules apply. Different thresholds exist for central government, other public bodies, and works contracts.

TOMs (Themes, Outcomes, Measures)

Standardised framework for measuring social value in procurement.

TUPE (Transfer of Undertakings Protection of Employment)

Regulations protecting employee rights when services transfer between employers, often relevant in service contracts.

V

VFM (Value for Money)

Assessment of whether procurement achieves optimal balance of cost and quality, considering whole-life costs.

W

Weighting

Relative importance assigned to different evaluation criteria, expressed as percentages.

Works Contract

Contract for construction, civil engineering, or building works.