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Tender Terminology, Tendering & Tenders Glossary


EOI
Expression of Interest. Interest expressed by suppliers in tendering for the contract.

e-Tendering
An electronic tendering solution facilitates the complete tendering process from the advertising of the requirement through to the placing of the contract. This includes the exchange of all relevant documents in electronic format. May or may not involve e-auctions.

ITT
Invitation to Tender. A call for bids or call for tenders or invitation to tender is a special procedure for generating competing offers from different bidders looking to obtain an award of business activity in works, supply, or service contracts. They are usually preceded by a pre-qualification questionnaire (PQQ).

Master vendor
Supplier who manages the project using other (sub-suppliers) and who is accountable to the end-client for the overall performance of the contract.

NDA
Non-Disclosure Agreement.

PQQ
Pre-Qualification Questionnaire. A PQQ is a questionnaire that potential suppliers or contractors have to complete so to establish if they are suitable for performing a contract. The PQQ can also restrict the competition to the most suitable bidders.

Procurement
The term used to describe how a company or contracting authority buys or agrees contracts for goods, works and services. PSA
Preferred Supplier Agreement.

PSL
Preferred Supplier List.

RFI
Request for Information. A preliminary step in the procurement process, where the client requests general information from suppliers about their organisation.

RFP
Request for Proposal. A request for proposal is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. A bidding process is one of the best methods for leveraging a company's negotiating ability and purchasing power with suppliers.

RFQ
Request for Quotation. A request for quotation is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services.

RFT
Request for Tender. A request for tender is a structured invitation to suppliers for the supply of products and/or services.

SLA
Service Level Agreement. A service level agreement is a part of a service contract where the level of service is formally defined. In practice, the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance.

Tender
To submit or offer a bid to supply the goods/services specified in the contract by the client.

 

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