Tenders Glossary

Expression of interest, meaning a business communication that an organization is interested in providing goods or services

Request for Proposal/Request for Quotation or Tenders is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific product/work/service

Projects come much before tenders in the project life-cycle. Projects are "broad" notices indicating the sector in which the buyer will procure goods or services in future. This helps manufacturer's/suppliers to get ready and arrange for resources for the future big orders and they can plan the expansion of their business.

Procurement News provides business development opportunities from the private and public sector, subcontracting opportunities in the form of contract award news, a way to keep you updated all the time. It keeps updated with all the changes in your industry

Request For Proposal - A formal request for a proposal - can range from a simple proposal to a complex tender

Request For Quotation

Request For Proposal

One of the Alternate Dispute Resolution (ADR) methods that is mentioned in the Arbitration/Dispute resolution clause of the agreement signed by the parties. The arbitration clause defines the number of Arbitrators, language, venue of the arbitration proceedings and the governing law.
The arbitration award is generally biding on all the parties involved in the dispute. The sole objective of going for arbitration and for that matter any alternate dispute resolution method is to avoid litigation and lengthy court procedures. This also helps in lessening the burden on already burdened formal courts.

RAQSCI stands for: Regulatory, Assurance of supply, Quality, Service, Cost (or commercial) and Innovation. This model is an effective way to ensure that purchaser's Procurement Objectives are comprehensive and broad based. This approach ensure that procurement professionals adopt a broad perspective on business needs and do not focus exclusively on costs.

It is a response to a tender in which the bidder submits a proposal to bag the order at a price which is less than the cost price. There may be various reason for suicidal bidding like: Keeping the competitors at bay, keeping the bidder's labour engaged, meeting the export obligations etc. In some cases the bidders bag the order at a lesser value and make the money on other pretext like: Training, Maintenance, supply of spares or by using few loop holes in the procurement process.

This is type of procurement technique, generally used before the announcement of final procurement requirement; and it is aimed at testing the supply market's capability to meet the purchaser's requirement. This exercise also generate sufficient interest among the supplier community and helps the purchasing entity to refine/fine tune their specifications for the final procurement announcement.

Spend Analysis is the process of collecting, classifying and analyzing the expenditure data. There are various objectives which can be achieved through this process like: Knowing in which category the maximum amount is being spent? category wise procurement cost and thus improving the procurement efficiency, inventory and supplier management, budgeting, planning and product development.

This term is generally used in aviation sector. In this case the aircraft is built with all the material and parts are provided by the manufacturer. Whereas in the case of Buyer Furnished Equipment, some of the equipment for example ovens etc are purchased by the purchaser of the aircraft and given to the aircraft manufacturer for installation.

The contrast is Buyer Installed Equipment, in which the provision is made for specific equipment the buyer will buy and install like- first aid kits, life vests etc.

Its the umbrella term generally used to define the procurement of those products and services which are indirectly used in the making of final product OR used to support the manufacturing process. These goods and services are consumed by the internal stakeholders/consumers and not directly sold to the external customers. Some of the examples of Indirect Procurement categories are: Utilities, Consumables, MRO (Maintenance repair and operations), Capital Goods (Plant and machinery), HR related service, Facility Management Services etc.

It is the practice of procurement/sourcing of products and services from the global market. In many a cases where either the product/service is not available and if available then is not of good quality; then it make sense to source the same from other country/ies. The product/service may be available at a much lesser cost in other country on account of various reasons like: low cost skilled labor, low cost raw material, tax breaks and low trade tariffs etc. Information Technology services from India and various products from China are typical examples of Global Sourcing.

Low Cost Country Sourcing (LCCS) is a subset of broader procurement philosophy called - Global Sourcing. In this case the procuring entity procure the material from those countries where the cost of production is less. The low production cost may be on account of cheap labour, lesser cost of raw material or may be due to low domestic tariff.

This is the delegation/ transfer of part of procurement process OR the complete procurement function to a third party. The main objectives which can be achieved through procurement outsourcing are: Availability of more time and resources for the core activity, reduced cost of procurement and enhanced efficiency in procurement function as the same is being handled by the professionals/procurement experts.

A purchasing card, also abbreviated as PCard is a type of credit card issued to the employees of an organization to make electronic payments for a variety of business expenses (e.g., goods and services). The organization can implement a variety of controls for each P-Card; for example, a single-purchase dollar limit, a monthly limit, merchant category code (MCC) restrictions and so on. In addition, a cardholder’s P-Card activity can be monitored by an independent person.

The North American Industry Classification System ( NAICS) is a classification within the North American Industry Classification System. The NAICS System was developed for use by Federal Statistical Agencies for the collection, analysis and publication of statistical data related to the US Economy.

It was adopted in 1997 to replace the Standard Industrial Classification (SIC) system in cooperation with the statistical agencies of Canada and Mexico. Their goal was to establish a North American standard. They developed the NAICS as the first economic classification system based on a single economic concept.

Whole Life Costs (WLC) refer to the total cost associated with owning, operating, and maintaining an asset or system over its entire lifespan. This concept is commonly used in business and financial management to make informed decisions about investments, particularly in the context of capital-intensive assets like machinery, vehicles, buildings, and infrastructure. Whole Life Costs take into account not only the initial purchase price but also all the costs that occur throughout the asset's life, including: Initial Acquisition Cost, Operating Costs, Maintenance Costs, Replacement or Upgrade Costs, Depreciation, Financing Costs, Residual Value, Operational Downtime Costs Etc.

By considering all these factors, organizations can make more informed decisions about whether to invest in a particular asset or system. A lower initial purchase price may be attractive, but if the asset has high operating and maintenance costs or a short lifespan, it may end up being more expensive in the lon

It is the process where a contractor assigns part of the contract to another contractor(s).

A stakeholder is an individual, group, organization, or entity that has an interest or concern in a particular project, organization, or system. Stakeholders can be both internal and external to the entity they are associated with, and they can have varying degrees of influence and impact on the entity's activities, decisions, and outcomes.

Nomenclature of Statistical Territorial Units ( NUTS ) is a hierarchical classification of administrative areas, used across the European Union for statistical purposes e.g. Northern Ireland is one of 12 “NUTS 1” areas in the UK.

Official Journal of the European Union (OJEU) is the publication in which all high value public sector contracts in the EU must be advertised.

Most economically advantageous tender (MEAT) is a type of evaluation criteria (other than the lowest price) used for the selection of the successful bidder. In this case not only the price but the quality and other quality related parameters are considered for the evaluation purpose.

A Call Off Contract, also known as a Call-Off Agreement or Call-Off Order, is a type of procurement where there is a need for ongoing, periodic deliveries of goods or services. This contract structure allows a buyer to establish a master agreement with a supplier or contractor and then "call off" or request specific quantities of goods or services as needed over a specified period.

In a Call Off Contract a master agreement between the buyer and the supplier is signed. This master agreement outlines the terms and conditions that will govern the overall relationship between the parties. It typically covers pricing, quality standards, delivery schedules, and other important terms. Within the master agreement, there is a framework or mechanism for placing future orders. This framework defines how the buyer can request specific quantities or types of goods or services over time. It often includes details such as order quantities, delivery dates, and any other relevant specifications.

Best and Final Offer is the detailed and fully priced offer submitted by a respondent for a contract, which represents their lowest price.

It is the recognition given to any organization that they meet certain standards. Accreditation is a formal process by which an authoritative and recognized organization assesses and verifies the competence, credibility, and quality of an institution, program, service, or individual based on established standards and criteria. Accreditation is often used in various fields to ensure that entities or individuals meet specific standards of excellence, safety, and competence.

Accreditation is typically a voluntary process, but in some cases, it may be required by law or regulation for certain industries or professions. The goal of accreditation is to provide confidence to consumers, stakeholders, and the public that the accredited entity or individual meets recognized standards of quality, safety, and competence. Accreditation bodies play a crucial role in maintaining and enforcing these standards and often conduct periodic reviews and evaluations to ensure ongoing compliance.

A principle implying a process by which reliable, timely information about existing conditions, decisions and actions relating to the organization's activities is made accessible, visible and understandable. In public procurement domain, transparency is being clear with potential suppliers as to what is planned and the steps that will be and have been taken in relation to a procurement process, and performing that procurement process as described in the communications with potential suppliers.

The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, based on the principles of openness, transparency and non-discrimination.

The agreement was originally established in 1979 as the Tokyo Round Code on Government Procurement, which entered into force in 1981 under the auspices of the General Agreement on Tariffs and Trade. It was then renegotiated in parallel with the Uruguay Round in 1994, and this version entered into force on 1 January 1996. The agreement was subsequently revised on 30 March 2012. The revised GPA came into effect on 6 July 2014.

ProZorro is a hybrid electronic open source government e-procurement system created as the result of a partnership between business, government and the civil society. ProZorro is a fully online public procurement platform and a collaboration environment that ensures open access to public procurement (tenders) in Ukraine. Fully implemented in 2016 as a hybrid (both centralized public and decentralized private marketplaces) system it has since been globally recognized as one of the most innovative public procurement systems delivering government services in a stakeholder-focused, transparent, effective, fair and low-cost way.

Force majeure is a legal and contractual concept that refers to unforeseeable and uncontrollable events or circumstances that can prevent a party from fulfilling its contractual obligations.

These events are often described as "acts of God" or "acts of nature" and are typically beyond the control of the parties involved in the contract. Force majeure clauses are included in contracts to address the potential impact of such events on the parties' ability to perform their contractual duties.

The consequences of a force majeure event can vary depending on the terms of the contract and the applicable laws. In many cases, the force majeure clause may allow for temporary suspension of contractual obligations, extension of deadlines, or, in some cases, termination of the contract without penalties.

It's important to note that the specific language and requirements of force majeure clauses can vary widely from one contract to another. Parties entering into contracts should carefully

The voluntary international corporate citizenship network initiated by the UN to support the participation of both the private sector and other social actors to advance responsible corporate citizenship and universal social and environmental principles to meet the challenges of globalization. It is based on 10 principles related to human rights, labour, environment and anti-corruption. See www.globalcompact.org for more information.

It is a term that refers to products or solutions that are readily available for purchase from third-party vendors and are not customized or developed specifically for a particular customer or organization. COTS products are pre-built and typically designed to meet the needs of a broad range of customers or users.

COTS products are readily available in the market and can be purchased off-the-shelf or online. COTS products are pre-built and configured by the vendor. They come with standardized features, functionalities, and settings that are designed to meet the needs of a wide range of users. Using COTS products can significantly reduce the time and cost associated with software or hardware development. Organizations can avoid the time-consuming process of building a solution from scratch.

Domestic sourcing is the activity of purchasing goods or services that are produced within the buyer's home country. Many countries give preference in their public procurement policy to Domestic Sourcing, in order to protect domestic industry and improve their competitiveness. Other countries see it as a kind of non-tariff barrier. Though, Domestic Sourcing protects the domestic industry to certain extent by giving immediate business but it is actually against the spirit of Global Sourcing and thus acts as a barrier to growth, innovation and efficiency of the domestic industry.

A sources sought is a type of notice used by the government agencies to solicit response form the prospective bidders for a project under consideration by that agency. Responses to Sources Sought notices give insight to the purchasers about the various options available in the market, capability and capacity of various prospective suppliers. Sources Sought notices are not requests for proposals or invitations to bid; as they come earlier in the procurement process.
On the other hand these notices make the prospective suppliers aware about the upcoming opportunity form the government entity. The other added advantage to the prospective supplier is that their response to the Sources Sought notices may influence the terms used by the agency in defining the requirements for the project.

Incoterms, short for International Commercial Terms, are a standardized set of internationally recognized trade terms that define the responsibilities and obligations of buyers and sellers in international trade transactions. Developed and published by the International Chamber of Commerce (ICC), Incoterms provide a common language and framework for businesses engaged in cross-border trade. They specify key aspects of a transaction, such as the delivery of goods, transfer of risk, and payment arrangements.