Terms used in government tenders

In this guide:

Tendering to government

Government tender processes use a common set of names and terms. Clearly understanding their meaning will help you make sense of the tender process and reduce your risk of making costly errors.

Agency

A department or statutory body as defined in the Financial Administration and Audit Act (QLD) 1977
Any government-owned corporation recognised under the Government Owned Corporations Act 1993

Approach to market (also known as invitation to offer, request for offer, request for proposal, or request for tender)

A government agency's invitation to tender or bid for a procurement contract

Conditions for participation

The minimum conditions you must meet for your submission to be considered in a procurement process

Conditions of tender

The terms under which a tender will be accepted for evaluation

Conditions of contract

The contractual terms that will be used

Deadline for submissions

The exact time and date by which submissions must be received. Offers submitted after the deadline are considered non-compliant and may not be forwarded for evaluation

Deliverables

A set of tangible, pre-planned items promised under a contract. Deliverables are usually listed in the request documentation and linked to deadlines

Environmental impact statement

A statement that identifies the impacts of a proposed work on the environment

Forward procurement schedules

A list of significant purchases for goods, services and projects for the current or upcoming year. These purchases can take the form of contracts, ad-hoc purchases or standing offer arrangements. However, the agency does not guarantee to purchase all or any of the projects, goods or services listed

Information sessions

Meetings held by the purchasing agency to provide potential tenderers with the opportunity to discuss and ask questions about the specific requirements of a tender

Invitation to offer (also known as approach to market, request for offer, request for proposal, or request for tender)

A government agency's invitation to tender or bid for a procurement contract

Mandatory criteria

Tenderers must provide a response to all mandatory evaluation criteria. This information is essential for the agency to make a decision

Open tender process

A procurement procedure where a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders

Panel

An arrangement under which a number of suppliers agree to supply services to an agency for a set period of time and usually for a set price
May also refer to the evaluation panel responsible for assessing and selecting contractors in a tender process

Probity

Probity requires the purchasing process to be conducted ethically, honestly and with fairness to all participants

Professional indemnity insurance

Insurance that covers legal liability for claims arising out of a breach of professional duty in the provision of professional services

Public liability insurance

Insurance that covers liabilities to the public for personal injury or property damage if you or your business is found to be negligent

Purchaser

The government department or agency that is requesting goods or services from a supplier

Quality assurance (QA)

Procedures for ensuring both the supplier's and the customer's satisfaction with the quality and consistency of goods or services provided. The International Standards Organisation (ISO) 9000 series of Quality System Standards sets out internationally agreed processes for achieving quality, consistency and satisfaction

Request for applications for a multi-use list

A published notice inviting businesses to apply for inclusion on a multi-use list. The notice must be published on the relevant government tender website either continuously or at least once per year

Request for expressions of interest

An openly published notice inviting businesses to register an expression of interest in procurement. The list of potential suppliers who have submitted expressions of interest may be used as the basis for conducting a select tender process

Request for offer or request for proposal or request for tender (also known as approach to market or invitation to offer)

A government agency's invitation to tender or bid for a procurement contract

Selection/evaluation criteria

A measure for selecting the most appropriate tender submission. Tenderers are required to respond to specific selection criteria in their tender submission. Criteria will usually focus on the abilities, knowledge and experience the purchasing agency require of the contractor

Select tender process

A procurement procedure in which the procuring agency invites specific potential suppliers to submit tenders

Scope creep

Also called 'requirement creep'. Describes uncontrolled changes in a project's scope. This can occur when the scope of a project is not clearly defined, documented or controlled

Standing offer

A standing offer arrangement sets out the terms and conditions, including price, under which a supplier agrees to supply an undefined volume of goods or services to an agency for a specified period. A deed of agreement sets out the defined volume, total price at the time of the purchase without having to undertake a selective or open tendering process

Subcontractor

A business that provides goods and/or services to a contractor

Supplier

A business or group of businesses that sell their goods or services to government

Sustainable procurement

Procurement processes that consider sustainability factors in their criteria including environmental impact and social responsibility

Tender response schedule

A summary of the components of information included in a tender. A tender response schedule may take the form of a checklist that is completed by tenderers before they complete and submit their tenders

Value adding