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Terminology

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

  • Abnormally low tender: abnormally low means a tender whose price is considered significantly lower than most of, or the average of all tenders in the same Tender exercise.
  • 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 Head of Legal services and the Procurement Manager must be sought prior to the set up or adoption of an approved/select tender list.
  • Bond: an insurance policy: A bond is intended to protect the council against a level of cost arising from a contractor’s failure.
  • 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: an agreement between the purchaser and the supplier that is enforceable by law.
  • Competitive Source: an independent provider bidding against another independent provider
  • Corporate Procurement Unit: The Authority’s Corporate Procurement Unit (CPU) provides advice, support and guidance on Procurement.
  • Goods: are material items i.e. equipment, food, vehicles etc.
  • EU Public Procurement Directives: are rules and regulations that Public Sector organisations must adhere to when procuring Goods, Works and Services over a certain value threshold (£189,330 for Goods and Services and £4,733,252 for Works contracts) - whereby an official Tender Exercise in accordance with the European Public Procurement Directives should be undertaken.
  • Evaluation: a method of determining which offer provides the best value for money in accordance with the pre-determined evaluation criteria
  • Evaluation Criteria: A list of key requirements taken from the specification that will enable suppliers to explain how they intend to deliver the requirement which will be evaluated. The criteria by which the most economically advantageous tender will be determined is based on a combination of price/cost and quality criteria.
  • Evaluation Panel: It is best practice to establish an evaluation panel to undertake the evaluation exercise. It may be appropriate to have a cross functional team as a panel. Panel should agree specification and evaluation criteria. Panel should be consistent throughout each stage of procurement exercise.
  • 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.
  • Lead Officer: Designated by the Chief Executive Officer to al with the contract in question and is the primary link between the Authority and the relevant contractor and shall be responsible for the management of the contractual arrangement.
  • Monitoring Officer: The officer designated by the Authority in accordance with the provisions of Section 5 of the Local Government and Housing Act 1989.
  • OJEU (Official Journal of the European Union): is a publication in which all public sector contracts valued over a certain monetary threshold (currently (£189,330 for Goods and Services and £4,733,252 for Works contracts) must be published.
  • Section 151 Officer: The officer designated by the Authority under Section 151 of the local Government Act 1972.
  • Sell2Wales: is a National Procurement Website where all public sector contracts are advertised. Third Party Grant Recipients can also advertise via the website free of charge, please email support@buy4wales.co.uk for further information.
  • Services: tasks undertaken by people i.e. consultancy services, translation services etc.
  • Specification: this is a written statement that defines the requirements. The specification will vary according to the work, product or service concerned. For a simple product the specification may be a brief description, while in the case of a complex requirement it will be a comprehensive document.
  • Tender: is the document compiled by a potential supplier in response to an invitation to tender. It sets out general information demonstrating the capability and eligibility of the supplier - including detailed information about how they propose to fulfil the specifications of the requirement.
  • Tender Evaluation Panel: 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 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.
  • Works: include landscaping, construction, building works etc.

Page updated: 06/01/2020 09:23:30