Procurement Jargon

Open tendering
Open tendering is a one-stage bidding process, where all interested service providers responding to an advert will be invited to submit a tender. The advert states where interested parties obtain tender documents and the last date when tenders will be accepted.

Restricted tendering
This is a two-stage bidding process in which potential contractors expressing an interest in bidding are evaluated first. A shortlist is then drawn up from the evaluation exercise for the sole purpose of inviting bids.

The public notice gives details on information that must be submitted by the supplier or on how to receive the necessary documentation to express an interest in being short listed. The restricted procedure is most likely to be applied where large numbers of applicants are anticipated.

Competitive dialogue
A new procedure to be used for complex contracts where the open or restricted procedure is not appropriate, but there are no grounds for using the negotiated procedure.

An OJEC advert is issued, followed by a competitive dialogue procedure with bidders to identify the best solution (this is not permitted under the open or restricted procedures).

Bidders then submit bids which may be clarified but negotiation (in the sense of the negotiated procedure) is not permitted.

Negotiated tendering
Under certain limited circumstances, negotiations takes place with one or more organisations of choice following a process of pre-qualification. In order to reduce numbers to a manageable level for the purposes of tendering (when using either the restricted or negotiated procedures), expressions of interest from potential suppliers are subject to a process of pre-qualification.

Pre-qualification
Potential suppliers must demonstrate their financial, commercial and technical capabilities to fully meet the contractual requirements under tender.

The contract provider may also take account of a company's past performance and experience with reference to contracts of a similar nature, both from its own experience and and other organisations.

They will also look for clear demonstration of commitment to equal opportunities in employment, to the environment and to health and safety (where appropriate).

Evaluation of tenders
In order to preserve the integrity of the competitive process, it is imperative that the evaluation of proposals is undertaken objectively, consistently and without bias towards particular suppliers. Tenders are usually evaluated against a pre-determined set of criteria.

Scoring and weighting of criteria is determined at the same time the tender is compiled.

From 31 January 2006 the relative weightings must be communicated to potential suppliers for all procurements carried out under the EU Public Procurement Regulations. It is very unlikely that contracts are awarded on the basis of price alone.





Learn Here How to Win New Business From Contracts


  • This programme focuses on the challenges you face every day as potential contract supplier and helps you fully achieve your potential and objectives


  • It assists you in taking all the steps required in achieving your Certificate or Diploma in Tendering


  • for Public Sector Contract Management.


  • To obtain a Certificate you must complete the workbook and achieve 60% in the self-assesment answers,


  • To obtain a Diploma you must complete the workbook and achieve above 80% in the self-assesment answers,


  • In both cases any report of work done in the contracting and procurement sector may be submitted for consideration.


Here are the skills you will learn


  • Identify tenders as they are announced by the public sector


  • Respond to tender notices effectively


  • Research, prepare, and submit public sector tenders


  • Implement quality management systems


  • Marketing products and services to the public sector effectively


  • Managing public sector contracts efficiently


  • Certificate / Diploma in Tendering for Public Sector Contract Management:

Who is a smalll firm


Section 248 of the Companies Act of 1985 states that a company is "small" if it satisfies at least two of the criteria in section (B) below:
For statistical purposes, the Department of Trade and Industry use the following definitions:
section A
  • a turnover of not more than 2.8 million;


  • a balance sheet total of not more than 1.4 million;


  • not more than 50 employees


  • A medium sized company must satisfy at least two of the following criteria:


  • a turnover of not more than 11.2 million;


  • a balance sheet total of not more than 5.6 million;


  • not more than 250 employees
section B
  • micro firm: 0 - 9 employees


  • small firm: 0 - 49 employees (includes micro)


  • medium firm: 50 - 249 employees


  • large firm: over 250 employees

A contract is usually awarded to the supplier(s) that considers offers the best value for money.

For this reason, the main evaluation criterion will be the "most economically advantageous tender" as determined by the criteria set out in the tender documents. The award criteria varies depending on the type of contract. Examples of award criteria, in addition to price, are experience, technical merit, financial viability, flexibility to future changes to requirements, speed of project delivery, sustainability, quality and equalities.

Award of contract
An evaluation team will examine each tender received and make recommendations as to which tender represents best value for money. Once the contract has been awarded, both the successful and unsuccessful tenderer's will be notified. Unsuccessful tenderer's may obtain feedback through written application. From 31 January 2006 a ruling for all procurements carried out under the EU Public Procurement Regulations requires a 10 day stand-still period between the notification of the successful bidder and the contract award.

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