The Public Procurement Glossary
Public procurement can feel like a maze of unfamiliar terms and endless abbreviations. Have you ever found yourself stuck wondering what a term actually means? You’re not alone! That’s exactly why this Public procurement glossary exists—to make things simple. Whether you’re a supplier trying to land your first contract, a business just getting into understanding government procurement, or a pro looking to stay on top of compliance, this glossary is your go-to guide. No fluff, no confusing jargon—just procurement terms and abbreviations explained in a way that actually makes sense.
What Is Public Procurement?
Public procurement emphasises how public organisations buy goods and services. It is like shopping but on a bigger scale. This includes buying office supplies, building roads or hiring services. The contracting authority or government agency sets the rules, picks the best supplier, and ensures everything runs smoothly.
It is all a part of supply chain management, making sure the right products and services get to the right place at the right time.
Key Principles Of Public Procurement
Transparency: Clear and Open Processes
Public contracts aren’t handed out in secret. A contract notice makes sure everyone knows what’s up for grabs, who’s bidding, and how decisions are made. This keeps the process fair and accountable.
Value: Smart Spending, Not Just Cheap Deals
It’s not just about the lowest price—it’s about quality, long-term savings, and corporate social responsibility. Governments aim to support ethical, sustainable businesses while getting the best value.
Fairness: Equal Opportunity for All
Public procurement is built on fair competition. Whether you’re a big company or a small supplier, everyone should have a shot at winning contracts based on merit.
The Lifecycle Of Public Procurement
Identifying the Need
Before anything is bought, public bodies figure out what’s needed and why.
Market Research & Planning
This step ensures the buying process follows rules like the Government Procurement Agreement, especially in international trade.
Tendering and Bidding
A contract notice is published, inviting suppliers to submit bids. The best choice isn’t just about price—it’s about quality, timelines, and reliability.
Awarding the Contract
The winning supplier is selected based on clear criteria, ensuring fair and competitive procurement.
Contract Management
Once the deal is signed, contract management ensures the supplier delivers as promised.
Review and Lessons Learned
After completion, procurement teams assess what worked and what could be improved for future projects.
Glossary Of Key Procurement Terms
A-C
Award Notice
An award notice is an official announcement that a contract has been awarded to a supplier. Public sector organisations publish this notice to ensure transparency in the procurement procedure, letting everyone know who won the contract and why.
Bid
A bid is a proposal that potential suppliers submit in response to a public contract opportunity. It outlines pricing, service quality and other key details. This allows contracting authorities or public sector organisations to evaluate and choose the best supplier.
Call-Off Contract
A call-off contract is used when an organisation purchases goods or services from a framework agreement. Instead of running a full procurement procedure every time, they “call off” what they need under pre-agreed terms, making the process faster and more efficient.
Competitive Dialogue
A competitive dialogue is a type of procurement procedure where one works directly with suppliers to refine project requirements before making a final decision. This is often used for complex contracts where standard solutions don’t help.
Contract Award Criteria
The contract award criteria are the factors that decide which bid wins. It is not always about the lowest price but also about quality, experience, and value for money when selecting the best supplier for the job.
D-F
Dynamic Purchasing System( DPS)
It is an online marketplace where one can buy goods or services from pre-approved suppliers. Unlike traditional contracts, new suppliers can join anytime, making it more flexible and competitive.
E-Procurement
It is the digital way of handling public purchasing. It covers everything from tendering and bidding to contract management. This makes the procurement process faster, transparent and easier to track.
Evaluation Criteria
Evaluation criteria are the rules used to asses potential suppliers bids. The factors that are kept in mind include price, quality, delivery time and corporate social responsibility.
Framework Agreements
A framework agreement is a long-term contract between public sector organisations and suppliers. It sets the terms for future purchases so goods and services can be bought quickly without running a complete procurement procedure each time.
G-I
Government Procurement Card
It is a payment card used to make low-value purchases quickly and efficiently. It helps reduce paperwork and speeds up the procedure.
Invitation To Tender
What does ITT mean in procurement? It is a formal request sent to potential suppliers asking them to submit detailed bids for a contract. It outlines the project requirements, timelines and evaluation criteria, ensuring a fair and competitive selection process.
J-L
Joint Procurement
This happens when two or more organisations team up to buy goods or services together. This approach helps them get better deals, streamline the procurement procedure and increase buying power.
Lifecycle Costing
Lifecycle costing looks at total cost of a product or service over its lifetime, not just the purchase price. This includes maintenance, operation, and disposal fees, which help in making smarter long-term decisions.
M-O
MEAT (Most Economically Advantageous Tender)
Meat is a method used to evaluate bids focusing on more than just the lowest price. It considers evaluation criteria like quality, sustainability, innovation and overall value to select the best supplier.
OJEU (Official Journal Of the European Union)
Before Brexit, public contracts above certain thresholds had to be published in OJEU, ensuring fair competition across the EU. The UK now follows its procurement regulations.
Open Procedure
An Open Procedure allows any potential supplier to submit a bid for a public contract. This makes the process highly competitive and ensures public sector organisations receive a wide range of offers.
P-R
Procurement Act 2023
The Procurement Act 2023 is the UK’s new law replacing older public procurement rules. It aims to make procurement simpler, more transparent, and value-driven, focusing on fair competition and better outcomes.
Public Contract Regulations (PCR 2015)
The Public Contract Regulations 2015 set the legal framework for public procurement in the UK, ensuring fair competition, transparency, and compliance with procurement procedures.
Request for Proposal
A Request for Proposal (RFP) is a formal request from public sector organisations asking suppliers to propose solutions for a specific need. Unlike an Invitation to Tender (ITT), RFPs allow for more flexibility in responses.
S-U
Social Value
Social Value means considering the broader benefits a contract can bring—like local job creation, environmental impact, and community support—with price and quality.
Standstill Period
This is a short waiting time after a contract award, allowing unsuccessful bidders to challenge the decisions before it becomes final.
V-Z
Value for Money
This is not just about grabbing the best deal but also about balancing cost, quality, sustainability and long-term benefits to make sure public funds are spent wisely.
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