Glossary

A

Award Criteria: The standards or benchmarks used by the procuring entity to evaluate and compare bids, ultimately determining the winning submission.

Addendum: An addition or change to the original tender documents issued by the procurement authority before the bid submission deadline

B

Bid: A formal offer submitted by a bidder to provide goods or services at a specified price, as outlined in a tender request.

Bid Bond: A type of security ensuring that the bidder will not withdraw their bid within the period specified for acceptance and, if required, will execute a written contract under the terms of the bid.

Bidder's Conference (or Pre-Bid Meeting): A meeting held by the tendering authority to clarify the tender requirements and answer any queries from potential bidders.

Bid Writer: A professional responsible for writing the various components of a bid, tender, or proposal, ensuring it is compelling, compliant, and clearly communicates the value proposition of the organisation, working closely with subject matter experts and the bid team.  

Bid Coordinator: This role involves managing the administrative and organisational aspects of the bid process, acting as the central point of communication and ensuring that all parts of the bid, from documentation to submissions, are prepared efficiently and meet the deadlines.  

Bid Manager: Leads and oversees the entire bid process, from identifying opportunities to submitting the final proposal. They strategise the approach, manage the bid team, playing a critical role in decision-making, planning, and execution, often engaging in client negotiations and feedback sessions post-submission.

BAFO (Best and Final Offer): A request made by the procuring entity to the shortlisted bidders, asking them to submit their best and final proposal before the final selection is made. This often includes the final price and terms.

C

Compliance: Adherence to the specifications, requirements, and conditions set out in the tender documentation.

Contract Award: The process of formally selecting a bid and notifying the successful bidder that they have been chosen to execute the work.

Criteria for Selection: The standards set by the procuring entity to evaluate the capability and suitability of bidders.

D

Due Diligence: The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party.

E

EOI (Expression of Interest): A document indicating a party's interest in participating in the bidding process for a particular project or service.

Evaluation Criteria: The benchmarks against which proposals are judged, including price, technical merit, and managerial capability.

F

Framework Agreement: An agreement with suppliers that sets out terms and conditions under which specific purchases (call-offs) can be made throughout the term of the agreement.

I

ITT (Invitation to Tender): A formal, structured invitation sent to potential suppliers to submit a bid to supply goods or services. The ITT details the procurement scope, submission guidelines, and evaluation criteria.

ITB (Invitation to Bid): A formal invitation issued by the procuring entity, inviting interested parties to submit a bid for the supply of goods or services.

Incoterms: International commercial terms published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts.

L

LOI (Letter of Intent): A document outlining the understanding between two or more parties which understands they intend to formalise in a legally binding agreement. The LOI can specify preliminary agreements on terms, scope of work, and intentions to negotiate in good faith.

N

NDA (Non-Disclosure Agreement): A legally binding contract that establishes a confidential relationship. The parties agree that sensitive information they may obtain will not be made available to any others.

Notice of Award: Official notification given to the winning bidder indicating their selection for the contract.

No-bid: A response to a bid invitation indicating that the invited party will not submit a bid.

P

PIN (Prior Information Notice): An advance notice given to suppliers about potential procurement activities or upcoming contracts. It is often used in public sector procurement to increase competition and transparency.

PQQ (Pre-Qualification Questionnaire): A document issued before the tendering process that allows the procuring entity to assess the qualifications and capabilities of potential suppliers. It's used to shortlist candidates who are then invited to bid.

Procurement: The process of finding, agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.

Proposal: A detailed document submitted in response to a request for proposals (RFP), outlining how the bidder’s offerings (goods or services) meet the requirements specified in the RFP.

P

PIN (Prior Information Notice): An advance notice given to suppliers about potential procurement activities or upcoming contracts. It is often used in public sector procurement to increase competition and transparency.

PQQ (Pre-Qualification Questionnaire): A document issued before the tendering process that allows the procuring entity to assess the qualifications and capabilities of potential suppliers. It's used to shortlist candidates who are then invited to bid.

Procurement: The process of finding, agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.

Proposal: A detailed document submitted in response to a request for proposals (RFP), outlining how the bidder’s offerings (goods or services) meet the requirements specified in the RFP.

Q

Qualification Criteria: The standards or requirements set by the procuring entity that suppliers must meet to be eligible to submit a bid.

R

RFP (Request for Proposal): A document issued when an organisation wants to buy a product or service and chooses to make the specifications available to many suppliers so that they can submit competitive bids.

RFI (Request for Information): A preliminary document issued by the procurement entity to gather general information about products, services, or suppliers. It's used before more formal procurement processes to help define strategy and requirements.

RFP (Request for Proposal): A document issued when an organisation wants to buy a product or service and chooses to make the specifications available to many suppliers so that they can submit competitive bids. (Already defined, included for context)

RFQ (Request for Quotation): A process in which a company asks several potential suppliers for quotations to compare who can offer the desired goods or services at the best price.

S

SQ (Selection Questionnaire): A set of questions designed to assess a bidder’s suitability for a project based on their experience, capacity, and financial stability. These are typically part of the pre-qualification or selection process and sometimes referred to as a Pre Qualification Questionnaire (PQQ).

SOW (Scope of Work): A detailed description of the work required for a particular project or contract, including the specific tasks, deliverables, timelines, and standards.

Selection Criteria: The set of benchmarks or standards used to assess and choose the winning bid.

T

Tender: A formal and structured invitation to suppliers to submit a bid to supply goods or services.

Tender Document: The document outlining the specifics of the tender process, including the scope of work, submission instructions, and evaluation criteria.

W

Winning Bid: The bid that has been selected as meeting all the criteria of the bid solicitation in terms of price, quality, timelines, and any other conditions set forth.