Key procurement terms

Addendum

An additional information about tender or any change or clarification to the tender document. This is provided to all respondents (potential suppliers) who have registered with the buyer during the time between issuing the tender and the closing date.

Approach to Market

Any notice inviting potential suppliers to participate in a procurement which may include a request for tender, request for quote, request for expression of interest, request for information or request for proposal.

Authorised person

See Business Owner

Best and final offer

The detailed and fully-priced offer submitted by a respondent for a contract, which represents their lowest price.

Bid

An offer in response to an Invitation to Bid or an offer in reponse to an electronic auction.

Business owner

The person in a company who is responsible for authorising the purchase of certain goods and / or services.

Buyer

The organisation purchasing goods and / or services from an Indigenous supplier.

Category

Groupings of similar goods or services with common supply and demand drivers and suppliers.

Certification (Supply Nation)

51% or more Aboriginal and/or Torres Strait Islander owned, managed and controlled.

Commonwealth Procurement Rules

The basic rule set for all Commonwealth procurements and govern the way in which Australian Government entities undertake their own processes.

Compliance

Requires that all material conditions of the invitation to tender must be complied with.

Confidential information

All trade secrets, know-how, business and financial information, and other proprietary information or data disclosed to one party by the other, or incorporated in materials or products provided to one party by the other and marked or indicated to be confidential.

Consortium

A group made up of two or more individuals, companies, or governments that work together to achieving a common objective.

Contract manager

Contracts managers can draft, evaluate and execute any type of contract that is negotiated between the business and client, such as short term, formal or annual contracts. They often work with the legal and/or finance department to monitor adherence and potential risks to the business or client.

De-briefing

The act of informing suppliers, contractors or service providers that were not selected during a particular procurement process, of the reasons why they were not selected. Debriefing can be done orally or in writing. It may be mandatory or at the request of the bidder.

Evaluation criteria

Standards or system to analyse or to rank importance. These are used to assess offers and compare alternatives put forward by respondents to a request. The evaluation criteria is an important part of a response to tender as the buyer will make a shortlist based on this.

Indigenous Business Direct

Supply Nation's one-stop-shop for anyone looking to buy from an Indigenous business and is mandated by the Federal Government as the first reference point for government buyers when fulfilling their targets under the new Indigenous Procurement Policy. Indigenous Business Direct is equally valuable as a resource for any procurement professional or buyer.

Joint venture

From 1 January 2019, incorporated Indigenous joint ventures must register with Supply Nation and be at least 50% Indigenous owned and demonstrate 50% Indigenous involvement in the management and control of the joint venture. In addition to the new requirements, the Joint Venture must also have in place (1) a strategy to build the capability and skills of the Indigenous business partner and; (2) an Indigenous workforce strategy.

Limited tender

Involves a relevant entity approaching one or more potential suppliers to make submissions, when the process does not meet the rules for open tender.

Open tender

Involves publishing an open approach to market and inviting submissions. This includes multi-stage procurements, provided the first stage is an open approach to market.

Panel

See Standing offer

Potential Tenderer

An entity or person who may respond to an approach to market.

Pre-qualification schemes

Such schemes help agencies find suppliers prequalified to work with government.

Probity

Evidence of ethical behaviour, and can be defined as complete and confirmed integrity, uprightness and honesty in a particular process.

Procurement

The acquisition through purchase or lease of real property, goods or other products (including intellectual property), works or services.

Progress claim

Are used to assess and maintain the contractor’s claims for work which has been completed to date.

Registration (Supply Nation)

Businesses that 50% or more Aboriginal and/or Torres Strait Islander ownership (caters for equal partnerships with non-Indigenous owners).

Request for Expression of Interest

An advertisement to identify suppliers that wish to participate in a forthcoming solicitation.

Request for Information

An instrument to conduct a market survey in order to obtain information from the market that can be used to identify available or potential solutions for fulfilling identified needs which may include information on cost and delivery time.

Request for Proposal / Tender

A formal method of solicitation where prospective suppliers are requested to submit a proposal for the provision of goods, works or services, based on the Specifications, Scope of Work, or Terms of Reference included in the solicitation documents. Normally used in cases where the requirements are complex; cannot be clearly or completely specified, where detailed technical evaluations are to be performed, and/or where pricing or cost may not be the sole basis of award.

Request for Quotation

An informal method of solicitation whereby suppliers are requested to submit a quotation for the provision of goods or services. Normally used for standard, off-the-shelf items, where the value of the procurement falls below the established threshold for formal methods of solicitation.

Scope of work or Statement of Work

Requirement specifications for work assignments outlining the specific services a contractor is expected to perform, generally indicating the type, level and quality of service, as well as the time schedule required.

Standing offer

An arrangement setting out the terms and conditions, including a basis for pricing, under which a supplier agrees to supply specified goods and services to a relevant entity for a specified period.

Sub-contractor

A party that carries out work for a contractor as part of a larger project.

Supplier (or vendor)

An entity or person who has entered into a contract with the Buyer.

Tender

Any formally submitted response from a potential supplier to an approach to market.

Tenderer

An entity or person who has responded with a submission to an approach to market.

Unique value / selling proposition

The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition.

Value for money

Best value for money is defined as the most advantageous combination of cost, quality and sustainability to meet customer requirements.

Weighting (of evaluation criteria)

This the level of importance assigned to evaluation criteria. Evaluation criteria may be given the same weighting or some may be given higher weightings than others.