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Procurement glossary

Plain-language meanings of the terms you meet in public tenders in the United States, Canada, the United Kingdom, the European Union, and at development banks and the United Nations. Each entry gives other names for the term, where it is used and an example.

Rules, thresholds and procedures change. Always check the buyer’s documents and the official source before you bid.

Terms by market

Global / common procurement terms

Addendum / Amendment

An official change to a procurement after it has been published. It may change a deadline, requirement, quantity or document.

Also called
Addendum, amendment, corrigendum
Used in
US / Canada / UK / EU / development banks and UN
Example
A catering tender is amended to move the closing date from Friday to Monday.

Award notice

A notice telling bidders that a contract has been awarded and, where disclosed, who won it.

Also called
Contract award notice, award notification
Used in
US / Canada / UK / EU / development banks and UN
Example
A city publishes an award notice naming the supplier selected for office furniture.

Bid / Tender

The response a supplier submits to compete for a contract. “Bid” is common in North America; “tender” is common in the UK, EU and many international markets.

Also called
Offer, submission, tender response
Used in
US / Canada / UK / EU / development banks and UN
Example
Your company submits a tender to provide catering for 12 government offices.

Bid deadline / Closing date

The final date and time when the buyer will accept responses. Late submissions are often rejected automatically.

Also called
Submission deadline, closing time
Used in
US / Canada / UK / EU / development banks and UN
Example
The janitorial bid closes at 2:00 p.m. on 18 November.

Bid/no-bid decision

The decision about whether an opportunity is worth spending time and money on. You normally consider how well it matches your business, eligibility, competition, deadline and delivery risk.

Also called
Go/no-go, pursuit decision
Used in
US / Canada / UK / EU / development banks and UN
Example
You decide not to bid on a furniture contract because delivery is required in three days.

Bidder conference / Pre-bid meeting

A meeting where the buyer explains the requirement and bidders can ask questions. Attendance may be optional or mandatory.

Also called
Pre-tender meeting, briefing, site visit
Used in
US / Canada / UK / EU / development banks and UN
Example
Bidders tour the buildings before pricing a janitorial contract.

Buyer / Contracting authority

The public body buying the goods or services. The exact legal term varies by market.

Also called
Procuring entity, contracting entity, purchaser
Used in
US / Canada / UK / EU / development banks and UN
Example
A municipal health authority is the buyer for a catering contract.

Clarification

A formal question asked when part of the procurement is unclear. Buyers usually publish answers so bidders receive the same information.

Also called
Bidder question, Q&A, clarification request
Used in
US / Canada / UK / EU / development banks and UN
Example
You ask whether office chairs must be assembled before delivery.

Compliance matrix

A table that lists each requirement and shows where your response addresses it. It helps prevent mandatory items from being missed.

Also called
Requirements matrix, compliance checklist
Used in
US / Canada / UK / EU / development banks and UN
Example
The matrix shows that insurance evidence must appear in section 4 of your janitorial bid.

Contract award

The buyer’s decision to give the contract to a selected supplier.

Also called
Award decision, contract placement
Used in
US / Canada / UK / EU / development banks and UN
Example
The furniture contract is awarded to the bidder whose submission met the stated evaluation rules.

Contract value / Estimated value

The buyer’s estimate of how much the contract may be worth. The final amount can differ depending on usage, options and awarded prices.

Also called
Estimated budget, ceiling value, procurement value
Used in
US / Canada / UK / EU / development banks and UN
Example
A catering contract has an estimated value of US$400,000 over two years.

Debrief

Feedback from the buyer explaining how your bid was evaluated. The amount of detail available depends on the procurement rules.

Also called
Bid feedback, post-award debrief
Used in
US / Canada / UK / EU / development banks and UN
Example
After losing an office-furniture tender, you request feedback on your technical score.

Eligibility requirement

A condition your business must meet before the buyer will consider your bid.

Also called
Qualification requirement, eligibility condition
Used in
US / Canada / UK / EU / development banks and UN
Example
The catering tender requires the supplier to hold a current food-service license.

Evaluation criteria

The factors the buyer will use to compare bids, such as price, experience, quality or delivery approach.

Also called
Scoring criteria, award criteria
Used in
US / Canada / UK / EU / development banks and UN
Example
A furniture tender scores price at 40% and product quality at 60%.

Evaluation method

The process the buyer says it will use to assess and rank responses.

Also called
Evaluation methodology, scoring method
Used in
US / Canada / UK / EU / development banks and UN
Example
The buyer first checks mandatory requirements, then scores the remaining catering bids.

Invitation to Bid (ITB)

A formal invitation asking suppliers to submit priced bids against defined requirements.

Also called
Invitation to tender, bid invitation
Used in
US / Canada / UK / EU / development banks and UN
Example
A UN office issues an ITB for 500 desks and chairs.

Joint venture

Two or more businesses that agree to pursue or deliver a contract together. The procurement documents usually explain what evidence each member must provide.

Also called
JV, consortium
Used in
US / Canada / UK / EU / development banks and UN
Example
A local caterer and a logistics company form a joint venture for a nationwide food-service contract.

Mandatory requirement

A requirement that must be satisfied for the bid to remain eligible. Missing one can cause the response to be rejected.

Also called
Must-have, pass/fail requirement
Used in
US / Canada / UK / EU / development banks and UN
Example
The janitorial tender says proof of liability insurance is mandatory.

Past performance

Evidence showing how your business performed on similar previous work. Buyers may ask for contract examples, references or performance records.

Also called
Relevant experience, contract references
Used in
US / Canada / UK / EU / development banks and UN
Example
You cite a previous office-furniture delivery completed for a university.

Prime contractor

The business that signs the contract directly with the buyer and is responsible for overall delivery.

Also called
Main contractor, lead contractor
Used in
US / Canada / UK / EU / development banks and UN
Example
Your company wins the catering contract as prime and hires a local bakery as a subcontractor.

Procurement portal

A website where public buyers publish opportunities, documents, notices and sometimes receive electronic bids.

Also called
Tender portal, e-procurement portal
Used in
US / Canada / UK / EU / development banks and UN
Example
You download a janitorial tender and submit your response through the buyer’s procurement portal.

Proposal

The document or package explaining how you will meet the buyer’s requirements and, where requested, your price.

Also called
Bid response, tender response, submission
Used in
US / Canada / UK / EU / development banks and UN
Example
Your catering proposal explains staffing, menus, food safety and pricing.

Request for Information (RFI)

A buyer’s request for information from suppliers before deciding how to structure a future procurement. It is usually not the final competition.

Also called
Market sounding, information request
Used in
US / Canada / UK / EU / development banks and UN
Example
A department asks furniture suppliers about lead times before issuing a tender.

Request for Proposal (RFP)

A competitive request where suppliers explain their approach as well as their price. Evaluation usually considers several criteria.

Also called
Request for proposals
Used in
US / Canada / UK / EU / development banks and UN
Example
An RFP for catering asks bidders to describe menus, staffing and service quality.

Request for Quotation (RFQ)

A request for suppliers to provide prices, usually for clearly defined goods or straightforward services.

Also called
Request for quote, quotation request
Used in
US / Canada / UK / EU / development banks and UN
Example
A council requests quotations for 100 office chairs with delivery included.

Scope of Work (SOW)

The part of the procurement that explains what work, goods or results the buyer expects.

Also called
Statement of work, scope, terms of reference
Used in
US / Canada / UK / EU / development banks and UN
Example
The janitorial SOW lists the buildings, cleaning frequency and required tasks.

Solicitation / Tender notice

The published announcement inviting suppliers to compete or telling the market that a procurement is starting.

Also called
Opportunity notice, procurement notice, contract notice
Used in
US / Canada / UK / EU / development banks and UN
Example
A tender notice announces a new three-year office-furniture contract.

Subcontractor

A business hired by the main contractor to perform part of the contract. The buyer may require subcontractors to be named or approved.

Also called
Sub, lower-tier supplier
Used in
US / Canada / UK / EU / development banks and UN
Example
The catering prime uses a subcontractor to deliver meals to remote offices.

Technical specification

The detailed description of what the goods or services must do, contain or meet.

Also called
Specification, technical requirements
Used in
US / Canada / UK / EU / development banks and UN
Example
The furniture specification requires desks to support a stated minimum weight.

Terms and conditions

The legal and commercial rules that will govern the contract, such as payment, insurance, liability and termination.

Also called
Contract terms, conditions of contract
Used in
US / Canada / UK / EU / development banks and UN
Example
The catering contract says invoices are paid after accepted monthly service.

United States

8(a) Business Development Program

A US Small Business Administration program for eligible small businesses owned and controlled by socially and economically disadvantaged individuals. Some procurements may be restricted to eligible 8(a) firms.

Also called
8(a) program
Used in
US
Example
An office-furniture procurement is set aside for businesses eligible under the 8(a) program.

CAGE code

A code used by the US government to identify organizations that do business with it.

Also called
Commercial and Government Entity code
Used in
US
Example
Your furniture company’s CAGE code appears in its registration record before it bids.

Federal Acquisition Regulation (FAR)

The main set of rules used for US federal procurement. Solicitations often reference FAR clauses that become part of the contract.

Also called
FAR
Used in
US
Example
A catering solicitation cites FAR clauses covering payment and contract changes.

HUBZone

A US small-business program for qualifying businesses located in designated areas and meeting program rules. Some contracts may be set aside for HUBZone firms.

Also called
Historically Underutilized Business Zone program
Used in
US
Example
A janitorial contract is competed only among eligible HUBZone small businesses.

Invitation for Bids (IFB)

A US procurement method commonly used when requirements are clear and award is mainly based on price among responsive, responsible bidders.

Also called
Sealed bid, invitation to bid
Used in
US
Example
An IFB asks suppliers for sealed prices for 1,000 standard office chairs.

NAICS code

A code used to classify the type of business activity connected to a US procurement. The selected code can affect which small-business size standard applies.

Also called
North American Industry Classification System code
Used in
US
Example
An office-supplies notice lists a NAICS code that bidders use to check the applicable size standard.

Product Service Code (PSC)

A US federal code describing the product or service being purchased. It is different from the NAICS code, which describes the industry.

Also called
PSC
Used in
US
Example
A furniture contract lists a PSC for office furniture alongside its NAICS code.

SAM.gov

The US government website used for entity registration and many federal contract opportunities and notices. Businesses generally need an active registration for many federal awards.

Also called
System for Award Management
Used in
US
Example
A catering company completes its entity registration before pursuing a federal contract.

Service-Disabled Veteran-Owned Small Business (SDVOSB)

A US small-business category for qualifying businesses owned and controlled by service-disabled veterans. Some procurements may be reserved for eligible firms.

Also called
SDVOSB
Used in
US
Example
A facilities contract is marked as an SDVOSB set-aside.

Set-aside

A US procurement restricted to a particular category of eligible businesses instead of being open to every supplier.

Also called
Reserved procurement, small-business set-aside
Used in
US
Example
A janitorial contract is set aside for qualifying small businesses.

Simplified Acquisition Threshold (SAT)

A US federal purchasing threshold used to determine which simplified acquisition rules may apply. The actual threshold can change, so bidders should check the current rule.

Also called
SAT
Used in
US
Example
A buyer uses a simplified process to purchase office furniture because the estimated value falls within the applicable rules.

Small business size standard

The rule used to determine whether a company counts as “small” for a particular NAICS code. It may be based on revenue, employees or another measure.

Also called
SBA size standard
Used in
US
Example
A catering company checks the size standard tied to the solicitation’s NAICS code before claiming small-business status.

Sources Sought notice

A notice used by a US federal buyer to learn which suppliers may be capable of doing the work before a formal solicitation is issued.

Also called
Sources Sought, market research notice
Used in
US
Example
A department posts a Sources Sought notice asking whether small firms can supply 2,000 office chairs nationwide.

Unique Entity ID (UEI)

A unique identifier assigned through SAM.gov to organizations doing business with the US government.

Also called
UEI
Used in
US
Example
Your catering company receives a UEI as part of its SAM.gov registration.

Women-Owned Small Business (WOSB)

A US small-business program for eligible companies owned and controlled by women. Certain procurements may be restricted to qualifying WOSBs.

Also called
WOSB
Used in
US
Example
A government office limits a supplies competition to eligible WOSBs.

Canada

CanadaBuys

The Government of Canada’s procurement website for finding federal opportunities, notices and related procurement information.

Also called
Government of Canada procurement portal
Used in
Canada
Example
A furniture supplier searches CanadaBuys for federal office-furnishing tenders.

GSIN

An older Canadian classification system that may still appear in legacy procurement records and searches. Newer federal procurement commonly uses UNSPSC classifications.

Also called
Goods and Services Identification Number
Used in
Canada
Example
An older janitorial notice may show a GSIN identifying the service category.

Notice of Proposed Procurement (NPP)

A Canadian federal notice describing an intended procurement and giving suppliers key information such as the requirement and closing date.

Also called
NPP
Used in
Canada
Example
An NPP announces that a department plans to purchase new office furniture.

Procurement Assistance Canada (PAC)

A Government of Canada service that helps businesses understand how federal procurement works and how to participate.

Also called
PAC
Used in
Canada
Example
A first-time catering supplier attends a PAC session before responding to its first federal tender.

Public Services and Procurement Canada (PSPC)

A federal department that buys many goods and services on behalf of the Government of Canada and manages major procurement tools.

Also called
PSPC
Used in
Canada
Example
PSPC runs a competition for office furniture used by several departments.

SEAO

Québec’s electronic tendering system for many public sector opportunities in the province.

Also called
Système électronique d'appel d'offres
Used in
Canada
Example
A Montréal janitorial company checks SEAO for municipal and public-body tenders.

Standing Offer

An arrangement setting pre-agreed prices and conditions that lets government buyers place orders when needed. It does not guarantee that any particular amount will be purchased.

Also called
SO
Used in
Canada
Example
A furniture supplier has a standing offer that departments can use to order desks throughout the year.

Supply Arrangement

A procurement arrangement with pre-qualified suppliers that establishes basic terms for future competitions or call-ups.

Also called
SA
Used in
Canada
Example
Several catering firms qualify under a supply arrangement and later compete for individual event contracts.

UNSPSC

A widely used classification system for goods and services. Canadian procurement and several international organizations use it to categorize what is being purchased.

Also called
United Nations Standard Products and Services Code
Used in
Canada / development banks and UN
Example
A tender uses a UNSPSC code for office furniture so suppliers can identify the category.

United Kingdom

Assessment Summary

Under the UK procurement regime, a supplier can receive information explaining how its tender was assessed against the published criteria.

Also called
Supplier assessment summary
Used in
UK
Example
After a catering competition, the bidder receives an assessment summary showing where its response scored well or poorly.

Call-off Contract

A contract awarded under an existing framework rather than starting an entirely new procurement from the beginning.

Also called
Call-off, framework call-off
Used in
UK
Example
A council uses a furniture framework to place a call-off contract for 300 desks.

Central Digital Platform

The UK government’s digital service, on the Find a Tender website, for publishing procurement notices and supplier information under the Procurement Act 2023. Devolved Scottish public bodies generally follow Scotland’s own procurement rules instead.

Also called
Central platform
Used in
UK
Example
A janitorial supplier keeps its core supplier information available for procurements published through the central system.

Competitive Flexible Procedure

A procurement procedure under the UK Procurement Act 2023 that allows the buyer to design a multi-stage competition suited to the requirement.

Also called
Flexible procedure
Used in
UK
Example
A complex catering contract uses a first stage to shortlist bidders and a later stage for detailed proposals.

Contracts Finder

A UK government service that published many lower-value public sector contract opportunities and awards under the rules before the Procurement Act 2023. For procurements started from 24 February 2025, these notices are published on Find a Tender instead; Contracts Finder still carries procurements that began under the earlier rules.

Used in
UK
Example
A small furniture company finds an older council opportunity on Contracts Finder, and newer ones on Find a Tender.

Find a Tender

The UK service used to publish procurement notices that fall within the relevant public-procurement rules.

Also called
FTS, Find a Tender service
Used in
UK
Example
A large nationwide janitorial competition is published on Find a Tender.

Procurement Act 2023

The main legislation governing much public procurement in England, Wales and Northern Ireland under the current UK regime.

Also called
UK Procurement Act
Used in
UK
Example
A supplier checks which Procurement Act notice and procedure applies to a catering tender.

Selection Questionnaire (SQ) / PQQ

A questionnaire used to assess whether a supplier has the capability, financial standing or experience to continue in a procurement. “PQQ” is an older term but still appears in procurement language.

Also called
SQ, pre-qualification questionnaire, PQQ
Used in
UK
Example
Before receiving the full furniture tender, bidders may be asked about insurance, turnover and past contracts.

Standstill Period

A waiting period between certain award decisions and contract signing that gives suppliers time to review the outcome and consider a challenge.

Also called
Standstill
Used in
UK / EU
Example
A catering bidder receives the award decision but the contract is not signed until the standstill period ends.

European Union

Common Procurement Vocabulary (CPV)

The EU classification system used to describe the subject of public contracts. Suppliers can use CPV codes to find relevant opportunities.

Also called
CPV code
Used in
EU / UK legacy data
Example
An office-furniture tender carries a CPV code for furniture products.

Contract Notice

A formal notice announcing a public contract opportunity and giving suppliers information about how to participate.

Also called
Procurement notice
Used in
EU
Example
A city publishes a contract notice for a multi-year janitorial service.

Dynamic Purchasing System (DPS)

An electronic purchasing arrangement that remains open to new qualifying suppliers during its lifetime, subject to the applicable rules.

Also called
DPS
Used in
EU / some UK legacy procurements
Example
A public body uses a DPS for recurring office-furniture purchases and new suppliers can apply to join.

eForms

Standard electronic notice formats used for publishing EU public-procurement information.

Also called
EU procurement eForms
Used in
EU
Example
The buyer publishes structured award information for a catering contract using an eForm.

European Single Procurement Document (ESPD)

A standard self-declaration suppliers can use to confirm that they meet exclusion and selection requirements before full evidence is requested.

Also called
ESPD
Used in
EU
Example
A furniture bidder submits an ESPD stating that it meets the required eligibility conditions.

Most Economically Advantageous Tender (MEAT)

An award approach that considers value, quality and other stated criteria rather than simply choosing the lowest price.

Also called
Best price-quality evaluation
Used in
EU
Example
A catering tender considers food quality, sustainability and price when selecting the winning offer.

Prior Information Notice (PIN)

A notice published before a procurement to alert the market that a buyer expects to purchase certain goods, works or services.

Also called
PIN
Used in
EU
Example
A hospital publishes a PIN months before it plans to tender for new office furniture.

Tenders Electronic Daily (TED)

The EU’s online publication service for public-procurement notices published through the Official Journal system.

Also called
TED
Used in
EU
Example
A supplier searches TED for large janitorial opportunities in several EU countries.

Development banks and United Nations

Bid Security

A financial guarantee that may be required with a bid to show that the bidder will honor its offer if selected.

Also called
Bid bond, tender security, bid guarantee
Used in
Development banks and UN / also used in other markets
Example
A furniture bidder provides the required bid security with its submission.

Expression of Interest (EOI)

A short submission showing that a supplier or consultant is interested and qualified enough to be considered for a later procurement stage.

Also called
EOI
Used in
Development banks and UN
Example
A catering consultant submits an EOI and may later be invited to submit a full proposal.

General Procurement Notice (GPN)

A broad notice describing the procurements expected under a development-bank-financed project. It helps suppliers see future opportunities before individual notices appear.

Also called
GPN
Used in
Development banks
Example
A GPN says a city improvement project will later purchase office furniture and equipment.

No-objection

Approval or confirmation from a financing development bank that a borrower may proceed with a procurement step under the applicable financing rules.

Also called
Bank no-objection
Used in
Development banks
Example
The project agency waits for the bank’s no-objection before awarding the catering contract.

Performance Security

A financial guarantee the winning supplier may have to provide to protect the buyer if the supplier fails to perform the contract.

Also called
Performance bond, performance guarantee
Used in
Development banks and UN / also used in other markets
Example
The winning janitorial contractor provides a performance guarantee before work begins.

Request for Bids (RFB)

A formal procurement document, commonly used in development-bank procurement, inviting suppliers to submit competitive bids for defined requirements.

Also called
RFB
Used in
Development banks
Example
A World Bank-financed project issues an RFB for desks, chairs and filing cabinets.

Shortlist

A smaller group of suppliers or consultants chosen from a larger pool and invited to continue to the next procurement stage.

Also called
Shortlisted firms, selected list
Used in
Development banks and UN
Example
Six consulting firms submit EOIs and three are shortlisted to prepare full proposals.

Specific Procurement Notice (SPN)

A notice for a particular procurement under a development-bank-financed project, usually giving the requirement, eligibility information and submission instructions.

Also called
SPN
Used in
Development banks
Example
An SPN invites suppliers to bid on catering equipment for a public-health project.

UN Global Marketplace (UNGM)

The United Nations’ common procurement portal for supplier registration and opportunities from participating UN organizations.

Also called
UNGM
Used in
UN
Example
A furniture supplier registers on UNGM and finds a notice for office desks at a UN field office.

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