Terminology

Below are common Procurement terms which you might come across when procuring goods, works or services.

• Abnormally low tender: For the purposes of these rules abnormally low shall be taken to mean a Tender whose price is considered significantly lower than most of, or the average of all tenders in the same Tender exercise. 
• Above Threshold: A Contract with an estimated total contract value of not less than the threshold amount for the type of contract and is subject to the main rules in the Procurement Act 2023.
• Aggregation: Adding together the value of separate contracts for the same supply, service and works.
• Approved List: An approved/select list presents a significant risk to the Authority and is not recommended as an acceptable procurement practice. Prior approval from Monitoring Officer and Section 151 Officer must be sought prior to the set up or adoption of an approved/select tender list.
• Authority: All references to the Authority in these Contract Procedure Rules shall include the Governing Body of each school falling under the jurisdiction of the Authority as the Local Education Authority if relevant.
• Bond: A bond is intended to protect the Council against a level of cost arising from a contractor’s failure.
• Call-off / Competitive Section Process: A call-off means a ‘Competitive Section process’ in the Procurement Act 2023. A process for the award of a public contract in accordance with a framework. See Section 46 of the Procurement Act 2023.
• Community Benefits: Through the Tender exercise, seeking to promote additional opportunities which will benefit the wider community. This might include training and employment opportunities, improved supply-chain opportunities, increased educational contributions and/or community initiatives.
• Contract: Any agreement (whether or not in writing) between the Authority and one or more other parties for:-
  •    the sale of goods or materials;
  •    the supply of goods or materials;
  •    the execution of works
  •    the provision of services (including accommodation and facilities).
• Contract Management: Ensuring that the right contractual agreement for an organisation is established and managed in the most effective manner, enabling both parties to fully meet their obligations providing the right quality of service/product, on time, within budget and compliant with specification requirements.
• Contract Modification: The Procurement Act 2023 provides clarity about the extent to which a contract can be amended after award without the need to re-advertise on Sell2Wales. See section 74 of the Procurement Act 2023 which outlines the detail and see CPR 14.
• Contractor: see Supplier
• Contract Register: A register of awarded contracts and frameworks within the Authority, held by CPU.
• Corporate Contract: Contracts for Goods/Works or Services that are in place for use by all departments of the Council.  These contracts enable Officers to acquire products/services efficiently and effectively.
• Corporate Procurement Unit (CPU): The Authority’s Corporate Procurement Unit (CPU) provides advice, support and guidance on Procurement.
• Covered Procurement: The award, entry into and management of a public contract as defined in the Procurement Act 2023.
• Dynamic Market: A list of suppliers who have met the Council's conditions of membership and whom may be awarded an above UK Procurement Threshold contract via the competitive flexible procedure.  New suppliers can join the Dynamic Market at any time during its operation. A Dynamic Market may only be established after 24 February 2025.
• e-Auction: An e-Auction (electronic auction) is an electronic marketplace between buyers and bidders, utilised as part of the costing criteria of the tender evaluation.
• Framework Agreement: An agreement between one or more authorities / public bodies and one or more economic operators, to establish the terms governing contracts to be awarded during a given period (call-offs).
• Lead Body: Any Body which the Authority is legally allowed to procure with or through, including Central Government Departments, other Local Authorities and other public sector bodies e.g. NPS.
• Lead Officer: The Lead Officer (LO) shall be responsible for the procurement process and following award will be the primary link between the Authority and the relevant supplier. The LO shall be responsible for the management of that contractual arrangement and ensuring that the price(s) paid is/are in accordance with the terms of the contract.
• Light Touch Regime: The new light-touch regime (LTR) is a specific set of rules for certain service contracts that tend to be of lower interest to cross-border competition. Those service contracts include certain social, health and education services, defined by Common Procurement Vocabulary (CPV) codes as outlined in Schedule 1 of the Procurement Regulations 2024.
• Mini Competition / Call-off: A mini competition is the process followed to place a call-off contract under a framework agreement where the best value supplier has not been specified in the original terms of the framework agreement. All suppliers within the original framework agreement are invited to submit bids against the original terms.
• Monitoring Officer: The Monitoring Officer is the officer designated by the Authority in accordance with the provisions of Section 5 of the Local Government and Housing Act 1989. This role is currently undertaken by the Head of Administration and Law. 
• Most Advantageous Tender (MAT): The tender that will bring the greatest benefit to the Authority having taken a number of factors into consideration, including quality and price.
• Notifiable Below-Threshold Contract: A regulated below-threshold contract with an estimated value of not less than £30,000.
• Open Frameworks: A scheme of frameworks that provides for the award of successive frameworks on substantially the same terms.
• Quotation: A quotation based on price and any other relevant matter, without the issue of a formal tender.
• Regulated Below-Threshold Contract: A below-threshold contract that is not: 
  •    an exempted contract as defined in Schedule 2 of the Procurement Act 2023; 
  •    a concession contract; or 
  •    a utilities contract.
• Reserved Procurement Arrangement: A procurement under a UK central government arrangement, for example the Crown Commercial Service.
• Section 151 Officer: The officer designated by the Authority under Section 151 of the Local Government Act 1972. This role is currently undertaken by the Director of Corporate Services. 
• Single Tender Action: Single Tender Action is only to be used in rare and exceptional circumstances and is broadly defined as procurement for which no competition is sought or where competition is not available in the marketplace. This definition applies to all single tender actions above the tender Threshold.
• Standstill: The minimum period which must elapse between notification of an award decision and the award of the contract. In the UK the standstill period is 8 working days.
• Supplier: A supplier of works, goods or services to the Council.
• Tender: An economic operator’s proposal submitted in response to an invitation to Tender. 
• Tender Evaluation Panels: A group of Officers appointed by the Lead Officer to undertake the tender evaluation exercise for a contract or Framework. The group of officers in question shall normally remain constant throughout the process and shall possess the necessary qualifications and/or expertise to advise the Lead Officer on technical, procurement, legal, financial, policy and staffing issues.
• Tender Procedures: 
  • Open Procedure - a single-stage tendering procedure without a restriction on who can submit tenders 
  • Competitive Flexible Procedure – such other competitive tendering procedure as the contracting authority considers appropriate for the purpose of awarding the public contract.

                  Further detail on all the Procedures above is available in the Procurement Guidance (available on the Intranet) or by contacting CPU. 

• Thresholds: The contract value for the type of contract concerned at which the Procurement Act 2023 applies. These Thresholds are updated every two years.