Your guide to
public procurement terms

A bid priced so low the buyer suspects it may be unsustainable or non-compliant. The buyer must ask the supplier to explain before rejecting it on that basis. Suppliers bidding keenly should be ready to show how the numbers add up.

Describes a contract whose estimated value meets or exceeds the relevant threshold, bringing the full Procurement Act 2023 regime into play - a published tender notice on Find a Tender, formal assessment and a standstill period. These are the most regulated and most visible opportunities.

The requirement to add together related or repeated purchases when estimating value, so a buyer cannot slice one large requirement into small pieces to stay under threshold. It keeps the threshold test honest and the right rules in play.

The published method explaining how each award criterion will be scored and how the marks combine into a result. Understanding it lets suppliers write answers that hit the higher score levels rather than merely covering the topic.

The feedback a buyer must give each supplier explaining how their tender was assessed, including how it compared with the winning bid. It is sent before the contract is signed and starts the standstill clock - and it is the document to study if you are weighing up a challenge.

An organisation a supplier relies on to meet the conditions of participation - such as a parent company or partner - and intends to use to deliver the contract. The buyer can check associated persons against the exclusion grounds, just like the lead supplier.

The published factors a buyer uses to decide which bid wins. Under the Procurement Act 2023 they must relate to the contract, be clear and measurable, and be proportionate - with the relative importance of each set out in advance. A winning bid is one built around them.

A contract under the main thresholds. Regulated below-threshold contracts still follow the Act’s lighter Part 6 rules - including advertising via a below-threshold tender notice - and must respect transparency and fair treatment. Often where smaller suppliers find their first public contracts.

The notice used to advertise a regulated below-threshold contract - one under the main thresholds but still subject to the Act’s lighter Part 6 rules. It opens up smaller opportunities, which are often where newer suppliers and SMEs win their first public work.

A formal proposal a supplier submits in response to a tender, setting out their understanding of the buyer’s requirements and how they will meet them, along with pricing, delivery and terms. Often used interchangeably with tender response or proposal, and ‘bid’ also describes the whole effort of preparing that response.

A supplier that is taking part in a competition by submitting a bid. Sometimes called a tenderer, a bidder is in the running to win and holds the rights to feedback - via the assessment summary - and to challenge that come with that status.

An individual contract awarded under a framework or dynamic market. Depending on the rules, the buyer either awards directly to a ranked supplier or runs a short competition among those on the framework. This is where much framework revenue is actually won, so it pays to stay competition-ready.

The digital backbone of the Procurement Act 2023, where suppliers register their core details once and buyers publish notices. It underpins Find a Tender and Contracts Finder, and cuts repetitive form-filling by reusing your registered information across procurements.

A body that buys, or sets up frameworks and dynamic markets, on behalf of many other public organisations. Winning a place with one can unlock demand across a whole sector or region, which makes them high-value targets for suppliers.

Questions suppliers raise during the tender period to resolve anything unclear in the documents. Answers are normally shared with all bidders to keep things fair. Used well, they fix risky wording before you commit a price; ignored, they leave you guessing.

A standard framework that is set up once and then shut to new suppliers for its lifetime, usually a maximum of four years (longer for utilities or defence). If you miss the original competition, you cannot join until it is re-procured - so tracking framework renewals is worth the effort.

A standard set of codes that classify what a contract is about, regardless of wording. CPV codes make notices searchable, and choosing the right ones to monitor is how suppliers filter the flow of opportunities down to the relevant ones.

The Procurement Act 2023’s flexible route, replacing the old multi-stage procedures. The buyer designs its own process to fit the contract - it can include shortlisting, negotiation, dialogue, demonstrations or several tender rounds. For suppliers it means reading each procurement carefully, because the shape of the competition is no longer one-size-fits-all.

The umbrella term for the two ways a buyer can competitively award a contract under the Procurement Act 2023: the open procedure or the competitive flexible procedure. A buyer must run one of these before awarding most public contracts, unless a direct award justification applies.

A contract where the supplier is paid mainly through the right to exploit the works or service - for example by charging users - and so takes on real operating risk. Concessions have their own high threshold and suit longer-term projects.

The requirements a supplier must satisfy to take part, limited under the Procurement Act 2023 to legal, financial and technical capability - and they must be proportionate to the contract. This is the Act’s replacement for the old ‘selection criteria’, and an excessive condition can be challenged.

A situation where someone involved in a procurement has interests that could compromise their impartiality. Buyers must identify and manage conflicts, and an unmanaged one can taint an award and expose it to challenge.

A group of suppliers bidding jointly, pooling their capacity and sharing the work and risk. It lets firms compete for contracts none could win alone, but raises questions of joint responsibility and structure that buyers will examine.

The notice a buyer publishes to announce its intended winner, which starts the standstill clock. It makes the outcome public and is a useful source of market intelligence on who is winning what, and at what value.

The notice a buyer publishes when it makes a qualifying change to an existing contract. It keeps modifications visible, so a contract cannot be quietly reshaped in ways that others never had the chance to bid for.

The notice a buyer publishes after entering into a contract, confirming the award and key details. It closes the loop on transparency and, alongside contract award notices, is a rich source of intelligence on competitors and pricing.

The work of running a contract after award - tracking performance, managing change and handling the relationship and payments. With performance now often published, strong delivery directly builds the reputation and evidence that win the next contract.

A change to a signed public contract. The Procurement Act 2023 limits how far a contract can be altered without a fresh procurement, and many changes must be published via a contract change notice, to stop buyers and suppliers reshaping a deal after the competition.

A notice reporting on how a supplier is performing against its KPIs, including where performance falls short. Published periodically for larger contracts, it makes delivery track record a matter of public record - which raises the stakes on getting delivery right.

A court remedy that can undo a contract awarded in breach of the rules. It replaces the old concept of ‘ineffectiveness’, and the possibility of it is a key reason the standstill period exists - to let suppliers challenge before a contract is locked in.

The notice a buyer must publish when a public contract comes to an end - whether through completion, expiry, termination or discharge. It is part of the Procurement Act 2023’s expanded transparency requirements, keeping the full life of a contract on the public record.

The public body that runs the procurement and signs the contract - central government, local authorities, the wider public sector and bodies governed by public law. It is the buyer whose decisions suppliers can question or challenge.

The UK service for advertising lower-value and below-threshold public opportunities in England. It is where many smaller contracts surface - often the most accessible entry point for newer suppliers and SMEs.

The UK’s largest central purchasing body, an executive agency of the Cabinet Office. It sets up frameworks and commercial agreements that public bodies across the country can buy through, so winning a place on a CCS agreement can open the door to buyers nationwide.

A central, published list of suppliers that are excluded or may be excluded from public contracts, maintained by a government minister following investigation. It is one of the Procurement Act 2023’s sharper accountability tools, and a listing can affect bidding across the whole public sector.

Awarding a contract to a supplier without a competition, allowed only where a specific justification applies - for example where just one supplier can deliver, or in genuine urgency. It replaces the old ‘negotiated procedure without prior publication’, and the buyer must publish a transparency notice before going ahead.

A list of pre-qualified suppliers that stays open for new entrants to join at any time, which buyers draw on for individual contracts. It is the Procurement Act 2023’s replacement for the dynamic purchasing system (DPS) and suits commodity-style or fast-moving categories where the buyer wants a continuously refreshed pool.

Uploading and lodging a bid through the buyer’s electronic portal by the deadline. The platform controls access and timing, so last-minute technical problems are a real risk - submitting well ahead of the cut-off is standard practice.

A check on whether a supplier is financially sound enough for the contract, judged on measures such as turnover or accounts. As a condition of participation it must be proportionate; a turnover demand set too high is a common way smaller suppliers get unfairly shut out.

The buyer’s calculation of what a contract is worth, used to decide whether it is above or below threshold and which rules apply. Under the UK regime it includes VAT and the maximum the buyer could pay, including options and extensions - and it cannot be split artificially to dodge the rules.

A supplier caught by a discretionary exclusion ground, which a buyer may - but is not required to - exclude. It gives buyers room to judge issues such as prior underperformance on a case-by-case basis.

A supplier caught by a mandatory exclusion ground, which a buyer must keep out of the competition unless the issue has been adequately addressed. Being listed has serious consequences, so suppliers need to know where they stand before bidding.

The reasons a supplier can be barred from a procurement. Mandatory grounds cover serious matters such as fraud, corruption and certain offences; discretionary grounds cover issues like poor past performance or professional misconduct. Together they act as the integrity filter on who can compete.

The UK’s central service for publishing public procurement notices, which replaced the EU’s OJEU and TED after Brexit. Above-threshold opportunities across England, Wales and Northern Ireland appear here, making it the main place suppliers watch for new tenders.

An agreement with one or more suppliers setting the terms for future call-off contracts over a set period - generally up to four years for most contracts. It does not guarantee any work; orders are placed as call-offs. Winning a place is often the gateway to recurring public-sector revenue.

The maximum total value or volume that can be called off under a framework over its life. Once reached, the framework is effectively used up - a limit worth watching when you judge how much real opportunity a framework place represents.

The World Trade Organisation agreement that opens covered public contracts to suppliers from member countries. The UK joined in its own right after leaving the EU, and UK thresholds are pegged to it - which is why they are revised every two years.

The pack of documents inviting suppliers to submit their bids: the specification, the conditions, the response forms and how the tender will be assessed. It is the master reference for a compliant bid, and missing a requirement buried inside it is a classic reason for being marked down or excluded.

The metrics used to track whether a contract is delivering as promised. For public contracts worth £5 million or more, the buyer must set at least three KPIs and publish how the supplier performs against them - so strong delivery becomes visible evidence for the next bid.

A contract for certain services - such as some health, social, education and legal services - that the Act treats more flexibly, with a much higher threshold (£663,540). Buyers still run a fair process but can tailor it to the nature of the service.

A package within a larger contract that can be bid for and awarded separately - by region, product line or service type. Lotting widens competition and helps SMEs, since a supplier can target the slices it is strongest in.

The practice of dividing a procurement into lots, including any cap on how many lots one supplier can win. The Procurement Act 2023 encourages it to open contracts up to smaller firms; for bidders it shapes where to focus effort.

The basis on which contracts are awarded under the Procurement Act 2023 - the tender that best meets the buyer’s requirements against the published award criteria. It replaced the old ‘most economically advantageous tender’ (MEAT), signalling that price need not be the only deciding factor.

The original name for the UK’s supplier complaints route, launched in 2011 and renamed the Public Procurement Review Service (PPRS) in 2018. Suppliers use it to raise concerns about how a public procurement is being run, including late payment. It now operates as one of the services within the Procurement Review Unit under the Procurement Act 2023.

The government’s published statement of strategic procurement priorities, which many contracting authorities must take into account. It steers buyers towards wider goals - such as social value, growth and sustainability - alongside the core duty to get value for money.

A new Procurement Act 2023 concept: a scheme of frameworks that must reopen to new suppliers at set points across a period of up to eight years. Unlike a closed framework, it gives suppliers repeated chances to get on board rather than a single one-off window.

The simpler of the two competitive tendering procedures under the Procurement Act 2023. It runs in a single stage: the buyer publishes a tender notice and any supplier can submit a full bid, with no separate shortlisting round. It suits straightforward requirements where the buyer does not need to negotiate or whittle down the field first.

The optional first stage of a competitive flexible procedure, where the buyer assesses suppliers against the conditions of participation and shortlists those invited to tender. It is the UK successor to the old selection stage, and clearing it is how a supplier earns its place in the full competition.

The contractual rules on how and when a supplier is paid. Public contracts under the Procurement Act 2023 carry implied 30-day payment terms that flow down the supply chain, which matters for cash flow and how a contract is priced.

A forward look at upcoming contracts that larger buyers must publish. Contracting authorities expecting to spend £100 million or more in a financial year have to flag anticipated contracts above £2 million, giving suppliers a longer-range view of what is coming.

An optional early notice signalling a buyer’s intention to run a procurement, broadly the successor to the prior information notice (PIN). Published ahead of the tender notice, it can shorten later tendering periods and gives suppliers an advance read on the pipeline.

Early conversations a buyer has with the market before launching a tender - to understand what is available, shape requirements and test feasibility. Suppliers can use it to flag what good looks like. If a buyer engages the market, it must publish a preliminary market engagement notice or explain why it did not.

The notice a buyer publishes to tell the market it is carrying out, or has carried out, pre-tender engagement. It signals an opportunity is taking shape and invites suppliers to contribute - an early door into a procurement before the formal tender lands.

A contract mechanism letting prices change over time on a defined basis, such as an inflation index. It shares cost risk between buyer and supplier, and whether a long contract allows it materially affects how it should be priced.

An assessment approach that scores price and quality separately and combines them by weighting to find the best overall value. It lets buyers reward a better solution rather than defaulting to the cheapest, and it is where strong quality answers pay off.

The structured process of acquiring goods, services or works from an external supplier. Public bodies are generally required to run a formal procurement once a purchase is above a set value threshold, which is what brings competition, transparency and the Procurement Act 2023 into play.

The law governing most public procurement in England, Wales and Northern Ireland, in force since 24 February 2025. It replaced the EU-derived Public Contracts Regulations 2015 and related rules with a single, simpler regime - new procedures, new terminology and far more published notices.

The principles every buyer must work to under the Procurement Act 2023: delivering value for money, maximising public benefit, sharing information transparently and acting with integrity. They replace the old EU treaty principles, and buyers must also have regard to the barriers SMEs can face.

An official instruction or guidance note issued by the Cabinet Office on how to apply procurement policy. PPNs are binding on central government departments and their agencies, with the wider public sector encouraged to follow suit. Recent examples include PPN 06/20 on social value and PPN 023:2026 setting the latest thresholds.

The Cabinet Office body that oversees how contracting authorities apply the Procurement Act 2023. It can investigate compliance, issue recommendations and handle the investigations behind the debarment list - part of the Act’s stronger focus on accountability.

The contract value at which the full Procurement Act 2023 rules apply. UK thresholds are in pounds and include VAT, and were updated on 1 January 2026: £135,018 for goods, services or works to central government, £207,720 to sub-central bodies, and £5,193,000 for works.

A separate set of rules for buying health care services for the NHS in England, in force since January 2024. It sits outside the Procurement Act 2023’s competitive procedures, so health care procurement follows its own distinct process.

A contract for goods, services or works between a contracting authority and a supplier, at or above the relevant threshold and not otherwise exempt. It is the end product of the procurement process and sets out the obligations, standards and payment for delivery.

The previous rulebook for UK public procurement, which implemented the EU directives. It was replaced by the Procurement Act 2023 on 24 February 2025, but still governs any procurement that started before that date - so legacy tenders and live contracts can continue to run under it for some time.

A document a buyer issues early on to understand what the market can offer and to gauge suppliers’ capabilities, before deciding how to proceed. It gathers information for comparison rather than to make a purchase, and often - though not always - leads to a later RFP or tender. In UK public procurement it aligns with preliminary market engagement.

A document a buyer issues to invite detailed proposals for a specific product or service, once it has settled on the scope and requirements. It introduces the buyer, sets out the requirements in detail, and the responses form the basis of the offers received. In UK public procurement it broadly corresponds to the invitation to tender.

A document a buyer issues to obtain priced quotes for a clearly specified, usually straightforward requirement, where price is the main deciding factor. It suits lower-value or off-the-shelf purchases, and in UK public procurement is often used for below-threshold buying.

A document a buyer issues to invite formal, priced tenders against a defined specification, with the aim of awarding a contract. Common in commercial and international procurement, it is effectively the tender stage - the UK public-sector equivalent being the tender notice and invitation to tender.

A portion of payment the buyer holds back until the work is complete or defined conditions are met, common in works contracts as security against defects. It protects the buyer but ties up the supplier’s cash, so it factors into bid pricing.

Scotland is not covered by the Procurement Act 2023. Public procurement there runs under its own legislation, chiefly the Public Contracts (Scotland) Regulations 2015 and the Procurement Reform (Scotland) Act 2014, with opportunities advertised on Public Contracts Scotland. Suppliers bidding UK-wide need to track both regimes.

The chance for a supplier facing exclusion to show it has put things right - by addressing the cause, cooperating with authorities or making changes - so it can stay in the competition. If the buyer accepts the evidence, an otherwise excludable supplier can continue.

A smaller business, a group the Procurement Act 2023 actively tries to bring into public markets. Buyers must have regard to the barriers SMEs face and consider removing them - through lotting, proportionate requirements and simpler processes.

The wider economic, social and environmental benefits a contract can deliver beyond the core goods or service - such as local jobs, skills or lower carbon. Increasingly built into award criteria or contract terms, and credible evidence of it can win bids.

The UK government’s standardised framework for scoring social value in central government tenders, introduced through PPN 06/20. It sets themes - such as tackling economic inequality, fighting climate change and equal opportunity - and central government must weight social value at a minimum of 10%. Many wider public bodies apply it too.

A standardised set of qualification questions - covering eligibility, exclusion grounds and capability - used to check whether a supplier should progress. A fixture of the previous regime, much of its role now shifts to one-time supplier registration on the Central Digital Platform and the buyer’s conditions of participation, though SQ-style documents are still widely used in practice.

A mandatory pause - at least eight working days - between publishing the contract award notice and signing the contract. It gives unsuccessful bidders a window to review their assessment summary and decide whether to challenge before the award becomes final.

Where the main supplier engages others to deliver part of the contract. Buyers may ask which parts will be subcontracted and to whom, and may check key subcontractors against exclusion grounds. For SMEs, subcontracting is often the first route into public work.

A firm engaged by the main supplier to carry out part of a contract. Buyers may vet key subcontractors, and in some cases their conduct can affect the main supplier’s standing. For smaller firms, subcontracting is a common way into public work.

The general term for any organisation that offers or delivers goods, services or works to a buyer. In a procurement, the supplier is the party competing for, and then delivering, the contract.

The one-time process of entering your organisation’s core information - identity, structure, credentials - onto the Central Digital Platform. Registering once and keeping it current saves repeating the same details on every bid.

A check on whether a supplier has the experience, skills and resources to deliver, usually evidenced by past contracts and relevant expertise. It is where relevant, well-documented track record becomes a real competitive asset.

Formally, a tender is a supplier’s bid - a complete, formal offer to deliver the contract on the stated terms - the solution, the pricing and any required declarations. However, the term tender is also commonly used for the buyers' request - the procurement.

The fixed date and time a complete bid must be submitted by. Public tender deadlines are effectively absolute - a late submission, even by minutes or because of an upload problem, is normally rejected. Building in a submission buffer is basic bid hygiene.

The notice that formally opens a competition and invites suppliers to bid or to request to take part. It is the Procurement Act 2023’s replacement for the old contract notice, published on Find a Tender, and it is the trigger to decide whether to pursue an opportunity and note the key dates.

The document describing exactly what the buyer wants - the requirements, quantities, standards and outcomes. It draws the line between a compliant and a non-compliant bid, so reading it closely is the single most important step in any response.

Ending a contract before its natural expiry, either for cause such as serious breach, or under rights reserved in the contract or the Act. The grounds and process must be clear, since wrongful termination creates liability and disputes.

The notice a buyer must publish before making a direct award, setting out its intention and the justification. It exists so that a contract handed out without competition is still visible to the market and open to scrutiny.

A core Procurement Act 2023 objective: securing the best mix of cost, quality and outcome over the life of a contract, not simply the lowest price. It gives buyers room to weigh quality, social value and sustainability alongside cost.

The relative importance a buyer gives each award criterion, usually as percentages or points. Weightings show what the buyer truly values - read them carefully, because they tell you where effort in the bid earns marks and where polish earns nothing.