Glossary
A
Authorised Officer
The officer designated by the Strategic Director/Corporate Director to deal with the contract in question.
Award Stage
The second stage of the tendering process. This may be incorporated into the first stage to make a single tendering procedure. Sometimes a shortlist is formed during the selection stage during which tenderers are selected for entry either to a short list or a select list. In these cases the award stage forms a separate phase of the tendering process.
B
Best Value
the duty on local authorities to secure continuous improvement in the way in which
functions are exercised, having regard to a combination of economy, efficiency and
effectiveness as implemented by the Council
Bid
usually used in connection with grant funding. The funder sets out the problems which the
grants are intended to address. Bids from applicants offer a variety of ways of solving the
problems and at various costs.
Bond
an "insurance policy": if the contractor does not do what it has promised under a
contract with the Council, the Council can claim from the surety (usually a bank), the sum of
money specified in the Bond (often 10% of the contract value). A Bond is intended to protect
the Council from additional costs arising from the contractor's failure.
C
Commissioning
the process by which local authorities decide how to spend their money to
get the best possible services for local people. Involves anticipating future needs and
expectations rather than reacting to present demand.
Commissioning Officers
officers who hold the budget for the purchasing of local services
and make the business case for the services to be purchased. Commissioning functions must
be separated from those of Procurement Officers.
Competitive Dialogue
a new tendering procedure which can be used for complex contracts
where the final specification is yet to be decided. The process uses the selection stage to
identify a number of tenderers, each of whom will be invited to contribute their ideas towards the
final specification. This is the "Dialogue" phase. When the specification has been decided then
the Procurement Officers must declare the dialogue complete. Those tenderers identified during
the selection stage are then invited to compete for the contract in the "Competitive" phase.
CPD
Common Procurement Directive. This is the European legislation which governs
purchasing across the EU. Set up for Supplies and Services following the Single Market Treaty
of 1986. The Directive for Services came into legislation in 1993. A new consolidated Directive
was approved in March 2004, implemented into UK law on 31st January 2006. The purpose of
the Directive is to open up purchasing so that there is a single market across Europe and to
increase competitiveness for contracts funded by public money.
CPD Threshold
the value of a contract over which the Directive requires publication in the
OJEU. For supplies and services this is €211,00
CPR
Contract Procedure Rules.
CPV
Common Procurement Vocabulary. The numerical system of identifying goods and
services in the tendering process. Also used as part of the e-procurement process to identify
services offered by the tendering organisation.
CSEP
Community & Social Enterprise Partnership (CSEP) is a partnership in Doncaster with the aim of having a voice and opportunity to influence strategic decision-making processes regarding social enterprises and service delivery.
e
e-Tendering
sending requests for information and prices to suppliers and receiving the
tender responses from suppliers using Internet technology.
E
EC Procedure
the procedure required by the European Commission(EC) where the total
estimated contract value exceeds the EC Threshold.
EC Threshold
the contract value at which EC public procurement directives must be applied,
currently £154,477 (249,681 Euros) for the supply of goods or services and £3,861,932
(6,242,028 Euros) for building, engineering and construction contracts.
EoI
Expression of Interest. A first stage in a tendering process. Prospective tenderers
express interest in the way described in the advertisement. This results in the tender documents
being sent to the prospective tenderer. The EoI may require prospective tenderers to submit a
summary of the proposed activities and an indication of cost. Not as stringent or detailed as a
PQQ .
EU Directive
a European Union legal instruction or secondary European legislation which is
binding on all Member States but which must be implemented through national legislation within
a prescribed time-scale. The European single market is covered by a number of Directives
which must be implemented by each of the 27 Member State into their own legislative
framework, and give detailed instructions on tendering procedures.
European Court of Justice
the European Court of Justice (ECJ) is based in Luxembourg. It
is an institution of the European Union (EU) and should not be confused with the European
Court of Human Rights. The ECJ plays a crucial part in the process of the integration of the EU
Member States. Its role is to interpret the EU Treaties. These Treaties are a type of
international law, but are also part of the internal common law of the Member States.
Evaluation Criteria
The criteria by which the successful Quotation or Tender is to be selected
I
ITT
Invitation to Tender, sometimes referred to as a call to tender. This is sent to tenderers
who have completed the PQQ and successfully passed the selection stage. The ITT starts the
second or award stage. Usually requires the completion of a Method Statement. Sets out tender
requirement, content, deadline, etc.
L
Lowest Price
One of two systems which the EU allows for tender selection. This allows for
selection on the basis of price and financial appraisal only.
M
MEAT
Most Economically Advantageous Tender. One of two systems which are allowed for
tender selection. This enables tender evaluation on the basis of the quality of the tender the
offer as well as the price. The quality is scored against a set of criteria identified for each tender.
Method Statement
a statement of the methods and resources to be employed in executing
work specified in a contract. The statement is closely linked to the contract delivery. Failure to
deliver the methods and resources set out in the method statement could lead to an action for
breech of contract.
N
NCVO
National Council for Voluntary Organisations - The charity in England that aims to speak for the voluntary sector. It gets involved in discussions over policy at a government level and attempts to represent the views of the voluntary sector to politicians and others.
Negotiated Procedure
a tendering procedure which is generally used for large capital
projects where a range of solutions to deliver the requirements specified are possible. The
selection stage is used to select those organisations that will proceed into the negotiated award
stage.
Nominated Suppliers and Sub-contractors
those persons specified in a main contract for
the discharge of any part of that contract.
O
OJEU
Official Journal of the European Union. The OJEU is published Monday to Saturday
every week, except on days which are public holidays in Belgium. It carries calls to tender
above the CPD threshold from all 27 EU Member states, the EEA countries and from the USA
and Australia under the WTO agreement. Average contents of a single issue of the OJEU are
in the region of 3-4,000 calls for tender. OJEU can be purchased in paper format or viewed
online at Tenders Electronic Daily:- reference
Open Procedure
a tendering process in which the selection stage is followed almost
immediately by the award stage in order to identify a single contractor to deliver the supplies or
services specified. Sometimes both the selection stage and award stage are combined into a
single phase
P
Parent Company Guarantee
A separate contract between the parent of a subsidiary
company and the Council. If the subsidiary company fails to do what it has promised under a
contract the Council can require the parent company to complete the contract instead.
PCT
Primary Care in the care provided by people you normally see when you first have a health problem. It might be a visit to a doctor or dentist, an optician for an eye test or just a trip to a pharmacy to buy cough mixture. NHS Walk-in Centers and the phone line service NHS Direct are also part of primary care. All of these services are managed by the local Primary Care Trust (PCT) and there are 302 of these, covering the whole of the UK.
PIN
Pre- Information Notice. A short notice indicating that a call for tenders is planned during
the coming three months. The publication of a PIN means that the deadline for submitting the
tender from the publication of the call may be shortened.
PQQ
Pre-qualification Questionnaire. A document which forms the basis of the first or
selection phase of the tendering process. The PQQ forms the gateway to the tendering process.
Failure to submit a successful PQQ and therefore succeed at the selection stage means that the
tenderer is excluded from the process and cannot proceed to the award stage.
Presentations
Tenderers may be invited to make a presentation as part of the tender process.
This can happen as one criterion used to assess the MEAT, award stage process. In a second
scenario the MEAT assessment may be used to produce a short list. All short listed tenderers
are then invited to make a presentation which is assessed prior to contract award.
Procurement
the purchase of goods and/or services by publicly funded bodies at the best
possible total price, in the right quantity and quality, at the right time generally via a contract.
The functions of procurement are a) ensuring legal compliance; b) purchasing supplies or
services; c) entering into contracts. Procurement must be kept separated from Commissioning.
Procurement Officers
legal officers who undertake the procurement functions. They are
usually based in a Procurement Department which form part of the Chief Executive's or public
authority's legal department.
Q
Quotation
a quotation of price and any other relevant matter (without the formal issue of an
Invitation to Tender).
R
Remedies Directives
a set of Directives, (a new one of which is expected in the Autumn of
2007), setting out the rules under which the decisions of public purchasers may be challenged,
in some cases, this may take place even before the contract has been signed.
Restricted Procedure
a tendering process which uses the selection stage to set up a select
list or framework of providers. The list may then be used for a defined period of up to eight years
to invite tenders or request quotes as specific services as required.
S
Selection Stage
The first phase of the tendering process. The selection stage involves the
completion and an assessment of the PQQ. This is based on an appraisal of business/financial
acumen and most importantly, risk, sometimes called "short listing" with those who pass going
onto the Award Stage. The selection stage is usually managed, and PQQs scored, by
Procurement and legal officers. The selection stage is sometimes outsourced to firms of
solicitors. Never assume that the PQQ will be scored by Commissioning Officers.
Short listing
where firms are selected, to quote or bid or to proceed to final evaluation.
Specification
a detailed description of the supplies or services to be purchased. If an
organisation is unable to deliver what is required exactly as set out in the specification it is not worth submitting a tender.
Statutory Instrument
Statutory Instruments (SIs) implement EU legislation into UK law.
T
Tender
a firm's proposal submitted in response to an Invitation to Tender.