Tender Glossary: Tender Terms Explained
Plain-English meanings of the terms you meet in Indian government tenders, from NIT, BOQ and EMD to L1, QCBS and corrigendum, with examples and tips for bidders.
A
Annexure
An annexure is a form, format or declaration attached to a tender document that bidders must fill in, sign and submit as part of their bid.
Read meaningATC
Additional Terms and ConditionsATC (Additional Terms and Conditions) are bid-specific clauses a buyer adds to a tender, most often a GeM bid, on top of the standard terms and conditions.
Read meaningAudit trail
An audit trail is a time-stamped record of who did what in a tender or evaluation, so decisions can be traced, checked and defended later.
Read meaningB
Bank guarantee
A bank guarantee is a bank’s written promise to pay the buyer up to a set amount if the bidder or contractor fails to meet its obligations.
Read meaningBar bending schedule
BBSA bar bending schedule (BBS) lists every reinforcement bar in a concrete structure, with its diameter, shape, length, number and weight.
Read meaningBid evaluation report
A bid evaluation report is the committee’s written record of how each bid was checked, why bids were accepted or rejected, and who it recommends.
Read meaningBid opening
Bid opening is the formal step where the buyer opens submitted bids after the deadline, first the technical covers and later the qualified financial bids.
Read meaningBid Security Declaration
A Bid Security Declaration is a signed undertaking a bidder gives instead of paying EMD, accepting a bidding ban if they break the bid terms.
Read meaningBid validity
Bid validity is the period after bid opening during which a bidder’s offer stays open and binding, and cannot be withdrawn or changed.
Read meaningBOM
Bill of MaterialsA BOM (Bill of Materials) lists the parts, components and raw materials needed to make an item, unlike a BOQ, which lists priced work items.
Read meaningBOQ
Bill of QuantitiesA BOQ (Bill of Quantities) is the itemised list of work or supplies in a tender, with quantities and units, against which bidders quote rates.
Read meaningBriefing note
A briefing note, or Brief Note, is an internal summary of a tender’s bidders, documents, evaluation findings and recommendation for officials to review.
Read meaningC
Comparative statement
A comparative statement is the table a buyer prepares to compare all qualified bids side by side, item by item, to find the lowest or best offer.
Read meaningCompetent Authority
The competent authority is the official who holds the delegated power to approve a procurement decision, such as a tender, a purchase or an award.
Read meaningCompliance statement
A compliance statement is a clause-by-clause table in a bid confirming that the offer meets each tender requirement, and listing any deviations.
Read meaningCorrigendum
A corrigendum is an official notice that changes or corrects a published tender, such as new dates, revised specifications or an updated BOQ.
Read meaningCPPP
Central Public Procurement PortalCPPP is the Central Public Procurement Portal, where central government ministries, departments and many PSUs publish tenders and receive e-bids.
Read meaningD
DGR empanelment
Directorate General ResettlementDGR empanelment is the listing of ex-servicemen security agencies by the Directorate General Resettlement so they can supply guards to government buyers.
Read meaningDPR
Detailed Project ReportA DPR (Detailed Project Report) sets out a project’s scope, design, cost estimate and plan, and is usually prepared before works are tendered.
Read meaningDSC
Digital Signature CertificateA DSC (Digital Signature Certificate) is an electronic credential that lets a bidder sign and encrypt online bids on Indian e-procurement portals.
Read meaningE
e-Procurement portal
An e-procurement portal is a government website where buyers publish tenders and bidders download documents and submit bids online, often with a DSC.
Read meaningEMD
Earnest Money DepositEMD (Earnest Money Deposit) is a refundable security a bidder pays with a tender bid to show serious intent, forfeited if they break bid terms.
Read meaningEOI
Expression of InterestAn EOI (Expression of Interest) is a buyer’s invitation for firms to show interest and share credentials, usually to shortlist them for a later tender.
Read meaningEPF and ESIC
Employees’ Provident Fund and Employees’ State Insurance CorporationEPF and ESIC are the provident fund and health insurance contributions an employer pays for each worker, a key cost in manpower tender pricing.
Read meaningF
Finance vetting
Finance vetting is the review of a procurement case by the buyer’s finance or accounts wing, checking budget, costs and financial rules before approval.
Read meaningFinancial bid
A financial bid is the part of a tender bid that contains the bidder’s prices, opened only after the technical bid has been evaluated and accepted.
Read meaningG
GeM
Government e MarketplaceGeM (Government e Marketplace) is India’s national online platform where government buyers purchase goods and services from registered sellers.
Read meaningGFR 2017
General Financial Rules 2017GFR 2017 (General Financial Rules) are the Government of India’s rules on managing public money, including how central ministries procure.
Read meaningGo/No-Go decision
A Go/No-Go decision is a bidder’s internal choice, made before preparing a bid, on whether a tender is worth pursuing based on eligibility, risk and fit.
Read meaningH
H1
Highest bidderH1 is the highest bidder in a tender or auction where the buyer earns money, such as a scrap sale or revenue contract, and usually wins the award.
Read meaningHSN code
Harmonised System of Nomenclature codeAn HSN code classifies goods for GST and trade. Tenders and bids ask for it so the buyer can identify each item and apply the right GST rate.
Read meaningJ
L
L1
Lowest bidderL1 is the bidder with the lowest evaluated price among technically qualified bids, usually the one awarded the contract in a lowest-price tender.
Read meaningLast purchase price
LPPThe last purchase price (LPP) is the rate a buyer last paid for the same or a similar item, used as a benchmark to judge whether new bids are reasonable.
Read meaningLCS
Least Cost SelectionLCS (Least Cost Selection) is a method where proposals that meet a minimum technical standard compete on price, and the lowest evaluated cost wins.
Read meaningLiquidated damages
Liquidated damages (LD) are a pre-agreed amount a buyer can deduct from a contractor’s payments for late delivery or late completion of work.
Read meaningLoA
Letter of AwardAn LoA (Letter of Award) is the buyer’s formal notice telling the winning bidder that their offer has been accepted and the contract is awarded.
Read meaningM
MAF
Manufacturer’s Authorisation FormA MAF (Manufacturer’s Authorisation Form) is a letter from an OEM authorising a dealer or distributor to quote its products in a specific tender.
Read meaningMake in India (Class-I local supplier)
Under the Make in India order, a Class-I local supplier offers goods or services with 50% or more local content and gets purchase preference.
Read meaningMinimum wages and VDA
Minimum wages are the lowest legal pay for each skill level, notified by the government; VDA is the part revised regularly to match price rises.
Read meaningMSE exemption
MSE exemption and purchase preference let registered micro and small enterprises skip EMD and tender fee, and win orders by matching the L1 price.
Read meaningMTO
Material Take-OffAn MTO (Material Take-Off) is a list of the materials and quantities needed for a job, measured from the drawings, used to estimate and price a bid.
Read meaningN
O
P
PBG
Performance Bank GuaranteeA PBG (Performance Bank Guarantee) is a bank guarantee the winning bidder gives the buyer as security that the contract will be carried out properly.
Read meaningPQ criteria
Pre-qualification criteriaPQ criteria are the minimum conditions on experience, turnover and capability that a bidder must meet to be considered in a tender at all.
Read meaningPre-bid meeting
A pre-bid meeting is a session the buyer holds before the bid deadline to explain the tender and answer bidders’ questions and concerns.
Read meaningPrice reasonability
Price reasonability is the buyer’s check that the winning bid’s price is fair and justified, compared with estimates, past prices and market rates.
Read meaningPSU
Public Sector UndertakingA PSU (Public Sector Undertaking) is a company or corporation majority owned by the central or a state government, and a major buyer through tenders.
Read meaningQ
R
Random selection on GeM
Random selection on GeM is how many manpower bids are awarded: when qualified bidders tie at the lowest price, the system picks the winner at random.
Read meaningRate analysis
Rate analysis is working out the cost of one unit of a work item from materials, labour, equipment, overheads and profit, to arrive at a rate to quote.
Read meaningRate contract
A rate contract is an agreement fixing the rates and terms for goods or services over a period, with orders placed as needed instead of a fixed quantity.
Read meaningReseller authorisation
Reseller authorisation on GeM is the permission an OEM grants through its GeM OEM panel so that a reseller can offer the OEM’s brand on the platform.
Read meaningReverse auction
A reverse auction is an online bidding event where qualified sellers lower their prices in real time, and the lowest price at the close wins.
Read meaningRFP
Request for ProposalAn RFP (Request for Proposal) is a detailed tender document asking bidders to submit technical and financial proposals for a defined project or service.
Read meaningRFQ
Request for QuotationAn RFQ (Request for Quotation) asks suppliers for prices on clearly defined items; in project bids it can also mean Request for Qualification.
Read meaningS
Schedule of Rates
SORA Schedule of Rates (SOR) is a government list of standard work items and rates, such as CPWD DSR, used to prepare estimates and BOQs for works tenders.
Read meaningSecurity Deposit
A security deposit is money a buyer holds from a contractor, often deducted from bills, to cover defects or non-performance until the contract ends.
Read meaningService charge
In a manpower tender, the service charge is the agency’s fee over the wage and statutory costs, often the main figure that decides the L1 bidder.
Read meaningShortfall documents
Shortfall documents are missing or unclear papers in a bid that the buyer may ask a bidder to clarify or supply during evaluation, if the tender allows it.
Read meaningT
TAA
Tender Accepting AuthorityThe TAA (Tender Accepting Authority) is the official empowered to accept or reject a Tender Committee’s recommendation and approve the contract award.
Read meaningTEC
Tender Evaluation CommitteeA TEC (Tender Evaluation Committee) is the group of officials a buyer appoints to examine bids and recommend which bidder should win the tender.
Read meaningTechnical bid
A technical bid is the part of a tender bid that shows the bidder is eligible and that its offer meets the specifications, without any prices.
Read meaningTechnical evaluation
Technical evaluation is the stage where the buyer checks each bid against the tender’s eligibility and technical requirements before prices are opened.
Read meaningTender Committee
A Tender Committee (TC) is a group of officials who consider the evaluation of a tender and recommend which bid to accept to the approving authority.
Read meaningTender Committee proceedings
Tender Committee proceedings are the formal record of a committee’s evaluation, deliberations and recommendation on a tender, signed by its members.
Read meaningTender fee
A tender fee is a non-refundable charge some buyers collect for issuing tender documents, separate from the EMD a bidder submits with the bid.
Read meaningThree-packet bid
A three-packet bid splits a tender into three covers, usually eligibility, technical and financial, which the buyer opens and evaluates in stages.
Read meaningTurnover criteria
Turnover criteria are eligibility conditions requiring a bidder to show a minimum average annual turnover over a set number of recent financial years.
Read meaningTwo-bid system
The two-bid system is a tender format where bidders submit technical and financial bids separately, and prices are opened only for qualified bidders.
Read meaningU
W
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