A

AGREEMENT - The legally binding contract terms and conditions between the parties; another word for a Contract.

ALCATEL - See 'Standstill Period'.

APPROVED SUPPLIER LIST - A list of contractors who have been assessed and approved to carry out work/deliver services to the Purchasing Authority.

AUDIT TRAIL - Computerised or paper generated evidence which proves how, why and by whom certain processes and functions were carried out.

AUTHORISED OFFICER - A member of the Purchasing Authority's staff approved and authorised to manage contracts with a contractor or supplier.

AWARD - The issue of an order or contract to a supplier.

B

BAME - Black, Asian Minority Ethnic.

BENCHMARKING - The process of comparing performance against other providers of similar services, particularly those recognised as adopting best practice.

BEST PRACTICE - The most effective and desirable method of carrying out a function or process derived from experience rather than theory.

BME - Black and Minority Ethnic.

BVR - Best Value Review. It is a requirement of the Local Government Act that all councils ensure that they achieve 'best value' from all of their contracts.

C

CALL OFF CONTRACT - An agreement with one or more suppliers for a pre-defined range of works, goods or services under which buyers 'call off' to meet their requirements. This type of contract is known as a Framework Agreement where there is no commitment to quantity or value.

COMMISSIONING - Another word for procurement; the process of buying or purchasing goods or services.

COMPETITIVE TENDERING - Awarding contracts through the process of seeking competing Tenders.

CONSORTIA - A group of organisations that engage in joint procurement for a contract.

CONTRACT- A binding agreement made between two or more parties which is intended to be enforceable at law.

CONTRACTOR - An organisation which has entered into a contract to supply goods and/or services.

CPC CODES - Common Procurement Codes. Codes used in OJEU notices to identify and describe types of goods/services.

CPV CODE - Common Procurement Vocabulary. These codes enable interested organisations to search for appropriate opportunities based on their industry sector (sub sector).

CSR POLICY - Corporate Social Responsibility Policy. A policy which demonstrates adherence to law, ethical standards, and international norms.

D

DEED - A formal document "executed under seal" or executed in a particular way.

DEFAULT NOTICE - A notice issued to inform the contractor that a breach of contract has occurred.

DPA - Data Protection Act.

E

EC - European Commission.

ECONOMIC OPERATOR - The term used in the Public Contract Regulations 2006 for a contractor, supplier or service provider.

E-ITT - Tender documents which are to be completed via an online system.

EMAS - Eco-Management and Audit Scheme. This is a voluntary scheme which aims to improve an organisation's environmental performance.

EMB - Ethnic Minority Business.

EMS - Environmental Management System.

EOI - Expression of Interest.

E-PROCUREMENT - The use of electronic systems to acquire goods, works, services and payments from third parties.

EU - European Union.

EU The European Union.

EVALUATION - The detailed assessment and comparison of suppliers' offers.

F

FIXED PRICE - A price which is not subject to variation.

FOI - Freedom of Information.

FOIA - Freedom of Information Act.

FRAMEWORK AGREEMENT - An agreement where the Purchasing Authority can call off goods/services from a number of suppliers.

I

ITN - Invitation to Negotiate.

ITQ - Invitation to Quote.

ITT - Invitation to Tender. See also 'Tender Documentation'.

K

KPI - Key Performance Indicator.

L

LETTER OF ACCEPTANCE - A letter that creates an immediate binding contractual relationship between the purchaser and the successful tenderer prior to entering into a formal contract.

LETTER OF INTENT - A letter informing a successful tenderer that it is the purchaser's intention to enter into a contract with them in the future. However, there is no liability created in regard to that future contract.

LOTS - One element of a contract. Where a contract is split into lots a supplier will normally be invited to tender for one or more lots.

M

MEAT - Most Economically Advantageous Tender.

METHOD STATEMENT - A statement which describes how the goods, services or works will be delivered.

N

NUTS CODES - The codes related to European geographic locations. These codes enable interested organisations to search for appropriate opportunities in their area.

O

OJEU - Official Journal of the European. Formerly OJEC (Official Journal of the European Community).

OPEN TENDERS - Contract for which any organisation can tender.

P

PARENT COMPANY GUARANTEE - A legal guarantee that ensures the successful tenderers' parent company will meet any costs of maintaining levels of service and/or the cost of re-letting the contract in the event that they are unable to meet the requirements of the contract.

PERFORMANCE BONDS - Bonds or guarantees, usually provided by a contractor's bank or insurer, which binds the provider to compensate the buyer, up to the amount of the bond obtained, in the event the contractor defaults on the contract.

PIN - Prior Information Notice. This is a notice published in OJEU that signals the intent to publish a contract notice or invitation to tender.

PQQ - Pre-Qualification Questionnaire.

PROCUREMENT - The buying of goods, services or works required by an organisation.

PROCUREMENT CARD/PURCHASING CARD - A credit card used by the public sector to make payment for goods, services and works.

PROCUREMENT STRATEGY - A document, usually used by public sector buyers, which sets out their approach to procurement for the next few years.

PUBLIC CONTRACT REGULATIONS 2006 SI (PCR 2006) - This is the legislation that translates the EU public procurement directives for use in the UK.

PURCHASE ORDER - A pre-printed form, which incorporates the buyer's terms and conditions of purchase, used to place an order with a supplier.

Q

QUALIFIED TENDER - A tender which does not fully meet the intended contractual requirements. Such tenders are not normally acceptable.

QUOTATION - An offer made by a supplier which details the cost of providing the required goods, works or services.

R

RESTRICTED TENDER - Contract for which organisations must pre-qualify in order to be given the opportunity to tender.

RFB - Request for Bid.

RFI - Request for Information.

RFP - Request for Proposal or Request for a Price.

RFQ - Request for Quotation.

RIEPs - The Regional Improvement and Efficiency Partnerships are government funded bodies to increase efficiency and support services.

S

SHORTLIST - A list of suitable prospective suppliers that has been drawn up through a preliminary evaluation exercise.

SLA - Service Level Agreement.

SME - Small and Medium Size Enterprise.

SPD - Scottish Procurement Directorate.

SPECIFICATION - The document detailing the requirements of the works/goods/services to be purchased.

STAKEHOLDERS - People who have an interest in an organisation or project; for example investors, service users, partners etc.

STANDSTILL PERIOD OR "ALCATEL" - The period (between 10 and 15 days) between the decision to award a contract and actually signing the contract. The purpose of this period is to give unsuccessful bidders the opportunity to challenge the award if they believe there has been a breach of the procurement rules.

SUSTAINABLE PROCUREMENT - The environmental, social and economic issues that must be considered in procurement exercise in order to meet the Purchasing Authorities objectives.

T

TED - Tenders Electronic Daily; the European Public Procurement Journal which contains all active procurement notices published in the Supplement of the Official Journal of the European Union.

TENDER DOCUMENTATION - A set of documents issued by a buyer, which normally includes a Business Questionnaire, Instructions to Tenderers, Contract Conditions, Specification, Pricing Document, Form of Tendering and Tenderers' Responses, for the delivery of goods, services or works.

TENDER PROCESS - The official process of advertising a contract, inviting organisations to tender, evaluating the submissions received and awarding the contract.

TUPE - Transfer of Undertakings (Protection of Employment) Regulations. The purpose of TUPE is to preserve continuity of employment and to safeguard employment rights of all employees whose employment transfers to a new employer as a result of a relevant transfer.

V

VARIANT BID - A bid that complies with the basic requirements of the buyer's contract but is different in certain key aspects.

VARIATION - The alteration, modification, addition to or deletion of any requirement of the contract terms or specification.

VfM - Value for Money.

W

WHOLE LIFE COSTS - The total value attributed to a procurement decision.

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