Procurement Jargon Buster

Added value - Features and benefits that you offer which exceed the specification for the contract.

Best practice - The most effective and desirable method of carrying Features and benefits that you offer which exceed the specification for the contract out a function or process derived from experience rather than theory.

Call of contract - An enabling agreement (framework) with one or more suppliers for a defined range of works, goods or services covering terms and conditions which users ‘call off’ to meet their requirements.

Contract - A binding agreement to perform a certain service or provide a certain product in exchange for valuable consideration, usually money.

Equality - Equality is about making sure people are treated fairly and given fair chances. Equality is not about treating everyone the same way but it recognises that their needs are met in different ways.

E-tendering - Electronic system used to view and submit tenders. Public sector organisations use e-tendering systems, to list procurement opportunities. Cumberland Council utilises the Due-North ProContract e-tendering system – known as The Chest.

European Union regulations (EU Regs) - There are rules and regulations set by the European Union with regard to procurement for public sector organisations – these rules and regulations are set to protect suppliers and must always be followed by all public sector organisations.

Evaluation - The process of assessing each bidders tender so as to be able to select the best option suitable to the requirements of the contract.

Find a Tender - On the 1st of January 2021, OJEU/TED was replaced by a new e-tendering platform called 'Find a Tender' (FTS). If contract spend is over the current WTO GPA threshold, tenders legally need to be posted on Find a Tender. This switch is the most notable and important, immediate effect of Brexit on public procurement.

Feedback - Discussion with a public sector organisation to find the reasons for success or failure of a tender so as to learn how to respond effectively in future.

Framework agreement - An arrangement where a purchaser selects suppliers and fixes terms and prices for a period in advance (often four years as the maximum), and then calls on the suppliers to deliver as and when required. There is never a guarantee of work even if you are part of a framework agreement.

Invitation to tender - A formal communication from a public sector organisation to a supplier inviting it to submit a tender. The ITT will usually also include a specification for the contract, instructions for submitting the tender, and the terms and conditions, which will govern the contract once it is active.

Lot - Some contracts are divided into a number of parcels of work (called lots) and suppliers are invited to state whether they are bidding for the whole contract or just parts of it.

OJEU (Official Journal of the European Union) - The Official Journal of the European Union, where all contract notices must be published for tenders that fall within the European procurement laws. (See above – Find a Tender)

Prior information notice - This gives advance notice that a contract may be advertised at some point – perhaps later in the year.

Pre-qualification questionnaire - A questionnaire used by public sector organisations to check the suitability of suppliers and shortlist the ones to be invited to tender.

Procurement - The process of buying goods and services.

Purchasing - The buying of goods and services.

Value for money - Public sector organisations strive to achieve ‘value for money’ and this is not necessarily the lowest price.