– Tender Terminology
Help in understanding Tender Terminology
The world of formal tendering is full of buzz words and acronyms.
If you would like help understanding tender terminology just ask. Please use the Comments/Enquiry box on our contact page.
Formal opportunities come with all sorts of labels. The following are parts of the tender process. These can be broken down into those where you are invited to pitch for contracts, and those where, at this stage, they just want information from you:
- ITT – Invitation to Tender
- PQQ – Pre Qualification Questionnaire
- RFI – Request for Information
- RFP – Request for Proposal
- RFQ – Request for Quotation
- IEO – Initial Expression of Interest
- QHSE (SHE / SHEQ) – Quality, Health, Safety, Environment
- CSR – Corporate Social Responsibility
- SLA – Service Level Agreement
- KPI – Key Performance Indicator
- MEAT – Most Economically Advantageous Tender
- CPV Codes – Common Procurement Vocabulary
- TUPE – Transfer of Undertakings (Protection of Employment)
Form of Contract – A standard form contract is a contract between two parties, where the terms and conditions of the contract are set by one of the parties, and the other party has little or no ability to negotiate more favourable terms and is thus placed in a “take it or leave it” position.
Standstill Period – The standstill period is a pause between contract award decision and the formal award of the contract. This allows time, for example, for an appeal to be made.
Types of agreement:
- Framework Agreement – This lays down terms, conditions & prices governing future business. It is not a guarantee of business.
- Preferred Supplier List – is a list of suppliers, specified by a business or organisation, that may be used for a particular product or service. It is not a guarantee of business.
An agreement may also be part of a Dynamic Purchasing System (DPS), a cross between a framework agreement and a preferred supplier list. This is an arrangement which allows suppliers who meet minimum criteria to apply to join at certain points during the duration of the DPS. Various call-off procedures and arrangements then apply.
- Mini Competitions – Formal mini tenders .
- E Auctions – This is when a single buyer offers a contract out for bidding (using specialised software). Multiple sellers are then able to offer bids on the contract. As the auction progresses, the price decreases as sellers compete to offer lower bids than their competitors whilst still meeting all of the specifications of the contract.
- Quick Quotes – Competitive mini tenders with short timescales, against a stated specification.
- Spot Purchases – Orders place directly with no further process required.
Common Areas of Interest to Tendering Organisations:
- Environmental Management / Sustainability / Sustainable Sourcing
- Equal Opportunities / Diversity
- Corporate Social Responsibility
- Added Value
- Supply Chain Management
If you would like help responding to questions about any of these areas we can help. Contact us.