Procurement
Jargon Buster
This Jargon Buster gives an explainations and clarifications for widely used public sector procurement phases, words and acronyms. The list will be updated as new phases arise.
Select the letter you want to find your explaination of a phase or word.
If you can't see what you need please let us know at the Procurement Team
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
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A
Agreement
The legally binding terms and conditions between parties that would normally form part of a contract or service level agreement.
Audit Trail
System or paper generated evidence trail showing how, why and by whom certain processes and functions were carried out.
Authorised Officer
An officer of the council who has been nominated by the chief officer to manage a contract or contracts with a contractor or supplier.
Award
The acceptance of an offer provided by a supplier to the authority either in the form of a contract or an order.
Award Criteria
The criteria by which the quotations or Tenders received are to be evaluated against.
B
Best Practice
The most effective and desirable method of carrying out a function or process derived from experience rather than theory.
Best Value
Best Value is a way in which councils plan, review and manage their performance in order to deliver continuous improvement in all services and meet the needs and expectations of their service users.
It is a requirement of the Local Government Act that all local authorities ensure that they achieve Best Value in all their contracts.
BIP
Business Information Publications Ltd. a good source for procurement training and information.
C
Call Off Contract
An agreement with one or more suppliers for a defined range of goods / services or works with covering terms and conditions including pricing which the users “call off” to meet their requirements.
Code of Business Conduct
The code that regulates the way that all officers conduct business on behalf of the authority.
Contract.
A binding agreement made between two or more parties which is intended to be enforceable by law.
Contractor
A person or organisation who has made a contract to supply goods and or services.
E
EU Journal or OJEU (Official Journal of the European Union)
The publication where all procurements over the relevant thresholds must be advertised.
European Union (EU)
Aan economic and political union of 27 member states intended to develop standardised regulations and policies to produce a single open market.
EU Procedure
The procurement procedure required by the EU where total contract value exceeds the EU thresholds.
EU Threshold
The total contract value at which point the EU public procurement directives apply. The thresholds as of 1st January 2008 are :-
- £1239,893 for goods and services
- £3,497,313 for works and construction.
Evaluation
Detailed assessment and comparison of supplier offers, which is carried out in an open and transparent manor to ensure a fair outcome.
F
Framework Agreement
A framework agreement is an Agreement between one or more contracting authorities and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged.
I
Invitation to Tender (ITT)
A document used in the tendering process to invite organisations to put forward their offers for the provision of works, goods or services.
K
Key Performance Indicator (KPI)
KPI’s are tools usually in the form of specific targets that are used to help measure the performance of suppliers against their contractual obligations. KPI’s will be detailed within the ITT and agreed at the outset of the contract.
M
Most Economically Advantageous Tender (MEAT)
The Tender that will bring the greatest benefit to the authority combining quality, service and whole life cost.
P
Parent Company Guarantee
A legal guarantee required on award that ensures that the parent company will meet any costs of maintaining levels of service and or that cost of re tendering the contract in the event of the subsidiary company being unable to meet the requirements of the contract.
Pre Qualification Questionnaire (PQQ)
The first document used in the two stage EU restricted tender process which is used to select a shortlist of suppliers who will be invited to tender. This process may be included as part of the Invitation to Tender as selection criteria in the EU open procedure.
Procurement
Refers to the process of acquiring goods, works or services, it includes acquisition from third parties and also from in – house providers. The process spans the whole cycle from identification of needs, through to the end of a service or the end of the useful life of an asset. It involves options appraisal and the critical “make or buy” decision – whether to provide services in – house or to procure services in other ways.
From the LGA/ODPM National Procurement Strategy for Local Government.
Procurement Strategy
A document setting out the council’s approach to procurement highlighting the key aims and priorities for the next few years.
Q
Quotation
Any offer by a supplier to supply goods, works or services requested either orally or in writing.
R
Restricted Tender
A two stage tender process where suppliers are required to complete a Pre Qualification Questionnaire (PQQ) which is evaluated and then a shortlist of suppliers are invited to complete an Invitation to Tender (ITT)
Request for Quote (RFQ)
A formal procurement process usually for lower value contracts where suppliers are required to submit a quote (usually in writing) but the documentation issued is less detailed than in s formal Invitation to Tender.
S
Shortlisting
Is the process of selecting candidates who are to be invited to quote or bid or to proceed to the final evaluation.
SLA
Service Level Agreement, agreed minimum level of service to be provided enforcing KPI’s with in a contract usually related to a service or supply contract especially where service, maintenance or support are involved.
SME
Are Small or Medium sized Enterprises which are defined as:-
Small less than 50 employees and annual turn over under €10 million
Medium between 50 and 250 employees and an annual turn over under €50 million
Specification
Sometimes referred to as Core Requirements or Statement of Requirements is a document or quite often a section within the Invitation to Tender that outlines the requirements and objectives of the contract.
Sustainability
The ability to meet present needs without compromising those of future generations. It relates to the continuity of economic, social, institutional and environmental aspects of human society, as well as the environment
T
TUPE
The Transfer of Undertakings (Protection of Employment) Regulations. Subject to certain conditions these regulations apply where responsibility for the delivery of works or services for the authority are transferred from on organisation (eg private contractor, local authority in house team) to another (eg following the contracting out or competitive tendering process) and where the individuals involved in carrying out the work are transferred to a new employer.
V
Value for Money (VfM)
Value for money is not just the lowest price; it combines goods or services that fully meet your needs, with the level of quality required, delivery at the time you need it and at an appropriate price.
Variation
Any alteration, modification, addition to or deletion of any requirement of a contract terms or specification.
