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Glossary of Common Tender

and Procurement Terms

For a newcomer to the world of bids and tenders, the language and jargon can be
confusing at the start. This glossary is intended to help with some of the more common
terms, acronyms and phrases that you will encounter.

©Bid Perfect Ltd. 2006 – 2008


ABC - Authorities Buying Consortium

The largest non-profit making purchasing agency in Scotland, serving the buying needs of
the public sector, charities and voluntary organisations.

Accelerated, Restricted or Negotiated Procedure

For high-value public sector contracts – the length of time of the tender or procurement
response process may be shortened to accommodate special circumstances and/or

Added Value Services

Often referring to additional services ‘over and above’ the basic contract specification.
Added Value Services may be driven as a direct result of the basic contract specifications
and may be either free or chargeable.

Adding together the value of separate contracts for the same supply contract, works or

A detailed assessment of the general capacity of a contractor, supplier or service provider to
meet certain pre-determined criteria or standards.

Approved List
A list of approved suppliers, contractors or service providers who have been pre-selected
(usually through a tendering process) and from whom goods and services must be procured.
See also Preferred Supplier List.

The issue of an order or contract to a supplier as a result of a competitive tendering/bidding

BAFO – Best and Final Offer

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

A process of continuously measuring and comparing an organisation's processes against
comparable organisations to gain information to help performance improvement e.g. ‘best-
in-class’ achievement.

Best Practice / Good Practice

Proven and documented working practices that provide optimum operational performance
within a specific business environment e.g. ‘best in field’.

Black and Minority Ethnic or Black Asian and Minority Ethnic (EMB means Ethnic Minority

BQS - Better Quality Services

The guidance for central government departments on the creation of public/private
partnerships through market testing and contracting out.

BV - Best Value
The Government’s alternative to the old Compulsory Competitive Tendering (CCT) system.
The principles make clear that the duty of best value applies to all local authority services.
The framework to put it into effect should promote local accountability and continuous
improvement in service performance.

Call Off Contract

A contract made following a formal tendering process with one or more contractors,
suppliers or service providers for a defined range of works, goods or services covering terms
and conditions (including price) which users ‘call off’ to meet their requirements.

See also Framework Agreement

CBC - Central Buying Consortium

The Central Buying Consortium is the largest local authority purchasing consortium in the
UK. It has seventeen local authority members and represents most of the major authorities
from the midlands to the south-east, outside London.

CRE - Commission for Racial Equality

Set up under the 1976 Race Relations Act, it receives a grant from the Department for
Communities and Local Government, but works independently of government, to remove
discrimination and help racial harmony.

CPV - Common Procurement Vocabulary (Codes)
Codes used throughout the European Union to generically describe products or services.
The use of CPV codes by public sector purchasers to define their requirements in a Contract
Notice is mandatory. CPV codes can also be used in Non-OJEU Contract Notices as a means
of classifying expenditure.

Competitive Contract Addendum

Notification showing changes, amendments or cancellation of a published Competitive
Contract Notice.

Competitive Dialogue
A variation of the negotiated process, now available under new European Union Rules, that
allows different options to be discussed before a particular solution is selected. It can be
used in complex contracts where technical solutions are difficult to define or where the
buyer needs the best solution to be developed.

An unincorporated group of firms or individuals which has been formed with a view to
pooling their strengths and resources to win contracts that they would not be able to in
their own right.

Contract Notice or Competitive Contract Notice

OJEU public sector contract opportunity advertised via TED, OJEU, etc (see
other definitions). These are classified by one of four 'Nature of the Contract' categories:
Works, Services, Goods or Research (scientific).

Contract Documents
Documents incorporated in the enforceable agreement between a public sector body and a
contractor, including contract conditions, specification, pricing document, form of tender
and the successful tenderers responses (including method statements), and other relevant
documents expressed to be contract documents (such as correspondence, etc.)

Contract Notice Award or Competitive Contract Notice Award

Published details of the company(s) which have been awarded a public sector contract
subject to Competitive Contract Notice (see above).

For public sector contracts in construction – the UK's register of local and national
construction and construction-related contractors and consultants

The subscription involves pre-qualifying and so is used by many public sector buyers to
select suitably qualified (local) suppliers.

Consortium for Purchasing and Distribution – CPD
A national procurement and fulfilment business focussed on meeting the needs of its many
customers in the Education, Training and Social Care Sectors. They are leaders in the school
supplies market and are very strong in the South West of England & Wales.

Contract Notice Opportunities

These are formal calls for competition for public sector contracts and are classified by
procedure type: Open Procedure / Restricted procedure / Negotiated Procedure (see
relevant term).

Core competencies
What an organisation does well – its key business – as opposed to other products or services
that it can or could offer.

Corporate Governance
An organisation’s system of rules, procedures etc used to manage and fulfil its legal,
financial and ethical obligations.

Corporate Social Responsibility - CSR

The Government sees CSR as the business contribution to our sustainable development
goals. Essentially, it is about how business takes account of its economic, social and
environmental impacts in the way it operates – maximising the benefits and minimising the

Cost Plus
The method of payment for contracts for which tenderers quote a lump sum or % addition
(margin) to their costs.

An organisation’s management, ethics, style and values.

Daily Rates
The method of payment for contracts for which tenderers quote rates per chargeable day.

The method of payment for contracts for which tenderers quote rates per attendance hour.

DBFM (design, build, finance and manage)

A contract (as used for the PFI) in which the service provider is responsible for all four
aspects of the provision and management of a service.

DBFO (design, build, finance and operate)

A contract (as used for the PFI) in which the service provider is responsible for all four
aspects of the provision and operation of an asset.

Giving positive, constructive feedback to competing suppliers on their performance at
certain stages of the procurement process. It affords an opportunity for a supplier to
improve performance in the future. In public sector procurement, a debrief is a legal
obligation from the public body. There is no such obligation in private sector procurement.

A breach of a contract condition, e.g. a delay in the promised delivery.

A collective name for the tangible goods and/or services that the supplier or contractor is
required to supply under agreement.

DECS - Defence Electronic Commerce Service

Ministry of Defence and Capgemini committed to a ten year Public Private Partnership (PPP)
for the provision of e-commerce and e-business services, which are made available to the
Defence community via DECS.

DE - Defence Estates
Responsible for the properties and lands owned by the MOD.

DELTA - Direct Electronic Links for Tender Administration

BiP’s modular internet based electronic tendering suite of applications, DELTA is in daily use
across much of the UK public sector. It is based on the EU Procurement Directives and best
practice in public sector procurement, providing open competition and transparency and
reducing discrimination through simple, user-driven processes.

Promoting equality and diversity is a duty the entire UK government take very seriously, and
is a responsibility shared by all government departments. Also see Equal Opportunities.

The Office of Government Commerce (OGC) defines e-Procurement as "The term used to
describe the use of electronic methods in every stage of the purchasing process from
identification of requirement through to payment, and potentially to contract
management." OGC specifically identifies that electronic enablement of the purchasing
process can include e-Sourcing, e-Procurement and e-Payment (including e-Invoicing).

Eastern Shires Purchasing Organisation – ESPO
A joint Committee of Local Authorities which operates within the Local Government (Goods
& Services) Act 1970. It acts as a purchasing agent for its member authorities and other
customers and provides a professional cost effective procurement and supply service.

Electronic Tendering Online – ELTON

A system to issue tenders electronically and allow companies to submit bids and proposals
via email.

Giving employees the necessary skills, knowledge, information and authority to enable them
to produce the specified outputs in the most effective and efficient way.

A genuine and realistic price that represents an estimate for defined works, goods or
services, as required by EU rules or standing orders for the purposes of determining the
procurement process and ensuring adequate budget provision. This should not be confused
with an estimate from a contractor, supplier or service provided for a defined piece of work.

Expression of Interest
See Initial Expression of Interest.

Equal opportunities
The practice of ensuring that all employees and users of services receive fair and equal
treatment. Also see Diversity.

External Customers
The external customers of the organisation e.g. your customer’s customers.

EU Rules
The Public Contract Regulations 2006.

Detailed assessment and comparison of contractor, supplier or service provider offers,
against financial and quality criteria.

Firm Price
A price which is not subject to variation

Framework Agreement
A formal agreement with selected (or short-listed) suppliers. The purpose is to establish the
terms of contract – in particular with regard to price and quantity. In other words, a
framework agreement is a general term for agreements with a number of suppliers which
set out terms and conditions under which specific purchases (call-offs) can be made
throughout the term of the agreement.

Freedom of Information Act

The act creates a general right of access, on request, to information held by public
authorities (Schedule 1 of the act sets out a long list of the authorities covered by the act).
However, there are numerous exemptions. Some of these are absolute; some are qualified,
which means the public authority has to decide whether the public interest in disclosing the
relevant information outweighs the public interest in maintaining the exemption. An
applicant for information who considers that a request has been wrongly rejected may
apply to the Information Commissioner, who has the power to order disclosure. However,
such orders can be appealed to a specialist tribunal (the Information Tribunal) and in some
circumstances the Government has the power to override orders of the Information

Any person can request information under the act; this includes legal entities such as
companies. There is no special format for a request. Applicants do not need to mention the
act when making a request. Applicants do not have to give a reason for their request.

The physical products provided by a supplier, e.g. stationery, computer consumables,
construction materials, IT equipment.

The framework of authority and control within an organisation.

HSE - Health and Safety Executive

Government body responsible for health and safety regulation in Great Britain.


IEO - Initial Expression of Interest

High value public sector contracts are advertised via OJEU and usually start with asking
parties interested in bidding to write and express their interest in bidding. This is different to
a Periodic Indicative Notice (or Prior Information Notice). See also PIN.

Genuinely new ideas for products, services, processes, systems and social interactions –
typically giving benefits to the contract.

Intellectual Capital
The value of an organisation that is not shown in its traditional financial accounts – the
intangible assets of an organisation and is the difference between market and book value
e.g. know-how, people, structure etc.

ISO - International Standards Organisation

An international standard-setting body composed of representatives from various national
standards bodies producing world-wide industrial and commercial standards.

IIP - Investors in People

The Investors in People Standard is a recognised (audited) standard showing the use of the
IIP business improvement tool designed to advance an organisation's performance through
its people.

ITT - Invitation to Tender

The paper or electronic documentation issued to organisations invited to tender for a
contract. Typically it includes a background, rules of tender, contract specification, questions
or information required and a draft contact.

Joint Ventures – JV
A formal or informal partnership created to achieve a specific aim – typically to win a tender
or PFI, PPP etc.


Key Performance Indicators - KPIs

Specific measurements of service delivery within a Service Level Agreement.

See SLA.

Liquidated and ascertained damages

A genuine pre-estimate of the loss that the Authority will suffer if the contractor defaults
when performing the contract. This may form the basis of deductions from payments, which
will be calculated according to the specific circumstance relating to each type of contract.

Letter of Acceptance
A letter that creates an immediate binding contractual relationship between the Council and
the successful tenderer prior to entering into a formal contract.

Letter of Intent.
A letter informing a successful tenderer that it is the Council’s intention to enter into a
contract with them in the future but creates no liability in regard to that future contract.

Market Testing
The process of comparing the efficiency of in-house (or incumbent) services against tenders
from outside companies

MIS - Management Information System

The mechanism for measuring and reporting information relevant to the management of
service delivery; typically information that assists both the supplier and customer.

Materials, Buildings and Equipment

Physical items in all their forms including stocks of raw materials and finished products,
material in progress and fixed assets.

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Master Vendor
The primary supplier who will manage the project using a range of sub-contractors or sub-
suppliers and who is accountable to the end client for the overall performance of the

Method Statement
The document used in a tender process which sets out questions for the suppliers to answer
which helps the purchaser or procurement officer to understand how the goods or services
will be delivered.

Mission Statement
A short statement that describes the purpose of an organisation, why it exists and its aims.
Also see Vision.

MEAT - Most Economically Advantageous Tender –

The optimum combination of whole life costs and benefits assessed against pre-determined
evaluation award criteria which will normally be detailed in the Invitation to Tender (ITT) or
equivalent documentation.

MSP – Managed Service Provider

NAO - National Audit Office

Its role is to audit the financial statements of all government departments and agencies, and
many other public bodies. They report on how well the expenditure of public money
achieves value for money (VFM) and improvements in the delivery of public services.

NSV - National Supplier Vocabulary (Codes) –

CPV numbers have been specially developed by the European Union for public
procurement. Their main purpose is to provide a standardised vocabulary to help
procurement personnel properly classify their contract notices (in the Official Journal of the
European Union – OJEU) and to aid suppliers find the notices which are of interest to them.

NDA – Non-Disclosure Agreement

A non-disclosure agreement (NDA), also known as a confidentiality agreement, confidential
disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy
agreement, is a legal contract between at least two parties that outlines confidential
materials or knowledge the parties wish to share with one another for certain purposes, but
wish to restrict access to. It is a contract through which the parties agree not to disclose
information covered by the agreement. An NDA creates a confidential relationship between
the parties to protect any type of confidential and proprietary information or a trade secret.

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As such, an NDA protects non-public business information. NDAs are commonly signed
when two companies or individuals are considering doing business and need to understand
the processes used in each other’s business for the purpose of evaluating the potential
business relationship. NDAs can be "mutual", meaning both parties are restricted in their
use of the materials provided, or they can restrict the use of material by a single party.

In rare cases, the contract may state that the existence of the NDA itself cannot be

Negotiated Procedure
For high-value public sector contracts (see OJEU) – only chosen suppliers are invited to
negotiate for a contract(s). This has limited use only e.g. extreme urgency, failure of
open/restricted procedures or repeat of similar contract.

NUTS - Nomenclature of Statistical Territorial Units

A hierarchical classification of administrative areas, used across the European Union for
statistical purposes e.g. Northern Ireland is one of 12 “NUTS 1” areas in the UK.

Official Order
A pre-printed form, which incorporates the Council’s terms and conditions of purchase,
used to place an order with a supplier – OGCbs
The Government's leading procurement services organisation for the UK; it is a non-profit
Executive Agency of the Office of Government Commerce in the Treasury.

Official Journal of the European Union (formerly OJEC) – OJEU

The publication in which all high-value public sector contracts in the EU must be advertised.
(Also see TED)

Open Procedure
For high-value public sector contracts (see OJEU) – suppliers can apply without prior
selection ie going through a Pre-Qualification Questionnaire (see PQQ). The EU Directives
lay down the type of criteria which can be used to eliminate unqualified or unsuitable

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Parent Company Guarantee

A parent company guarantee binds the guarantor (the ‘parent company’) to fulfil and
complete a subsidiary company’s obligations and liabilities in the event of a failure by that
subsidiary to fulfil and complete its obligations and liabilities under a contract

Partnering Contracts
Contracts in which prices and specifications are not decided until after contracts are let,
usually to enable contractors to contribute to design solutions and other aspects of the
work (as proposed by the Government’s Construction Task Force, the Egan Committee).

Performance Bonds
Bonds or guarantees given to clients by specialist insurers, on behalf of contractors and at
their expense, binding the insurers to compensate clients (up to the amount of the bond
obtained) in the event of a default.

PFI - Private Finance Initiative.

A form of partnership between the private and public sector which is normally used for high
risk/high value contracts, principally to raise money for higher value projects.

PPP - Public Private Partnership.

Very similar to a PFI arrangement, but the aim is centred more on service delivery than

Preferred Suppliers List

A list of organisations preferred by public sector bodies to undertake certain works, supplies
or services, following a competitive tendering exercise.

The process of acquiring goods, works and services, covering acquisition from third parties
and from in-house providers. The process spans the whole life cycle from identification of
needs, through to the end of a services contract or the end of the useful life of an asset.

A working relationship between two or more parties either creating added value for the
customer or as a means to win contracts that individually they may not be successful with.
Partners can include suppliers, distributors, joint ventures, and alliances. Note: Suppliers
may not always be recognised as formal partners. (Also see Joint Ventures.)

Periodic Indicative Notice, Prior Information Notice – PIN

An advance warning of a public sector contract to be tendered at some time in the future.
The issue of a PIN does not guarantee that a contract will be placed. This is different to an
Initial Expression of Interest (See also IEO).

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PIN – Prior Indicative Notice
Used in OJEU to indicate a buyer’s intention of going to tender on a proposed contract in
the near future. Use of a PIN allows a buyer to use a shorter timeframe for the actual tender

Pre-qualification Questionnaire - PQQ

A set of questions designed to help buyers select the most suitable bidders to be invited to

PSA – Preferred Supplier Agreement

An arrangement between a corporation and supplier in which, in return for discounts or
other advantages, the corporation requires its employees to source goods and services
directly from that supplier only.

PSL – Preferred Supplier List

A list of suppliers maintained by an organisation from whom they will procure goods and
services and which excludes all suppliers that are not on that list. Placing on the list will
normally be as a result of completing a tender process.

PPP - Public Private Partnership –

Similar to PFI (above).

Public Sector, The

Specifically, the term ‘public sector‘ refers to all bodies that are governed under public law.
For member states of the EU (European Union), this means, primarily, central government
and all its associated departments, regional and local authorities, state owned utilities, the
National Health Service, the police service, the armed forces (MOD), universities and
colleges, prisons and devolved administrations in Scotland, Wales and Northern Ireland. The
term also covers all European institutions including the EC (European Commission) and its
related projects and programmes Providing goods or services to the public sector represents
a vast opportunity to businesses of all sizes and composition. The value of the spend by local
government alone in 2008 will exceed £40 billion.

Moreover, there is now a specific focus in public accounting to show that equal opportunity
has been afforded to small and medium-sized businesses, businesses owned and managed
by minorities and start-up concerns. Providing that a business can securely and
demonstrably meet the terms and conditions of the tendered contract, and has the logistic
and internal infrastructure to carry out the services to the levels demanded by the SLA
(Service Level Agreement), then it is usually assured of equal participation rights. All public
sector authorities are subject to European public procurement rules which are intended to
ensure an open and fair market for suppliers, a visible and auditable contracting process and
equal access to contract opportunities for all suppliers.

Public procurement rules are defined in a series of EU directives implemented at national

level through regulations and other forms of legislation.

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Apart from the provision of a consistent set of procurement rules across the EU, the
principal aims of the regulations are to eliminate discriminatory and uncompetitive practices
that run counter to the public interest and to ensure the good stewardship of public funds.

Variations to procurement regulations at local level are acceptable as long as they do not
contravene existing UK or EU rules, accounting principles or the requirements of statutory
legislation. It is also possible to have varying applications of the rules within a single
contract, by different purchasing officers or departments.

The level of fitness for purpose which is specified for or achieved by any service, work or

Quality Assurance (QA)

A discipline to assess quality standards, covering all activities and functions concerned with
the attainment of quality.

A written or verbal price given by a contractor, supplier or service provider, after being
requested either orally or in writing. A quotation may be the written confirmation of an
earlier, oral offer.

RFI - Request for Information

An alternative term for PQQ.

See Pre-qualification Questionnaire.

RFP - Request for Proposal

A formal request for a proposal – can range from a simple proposal to a complex tender.

RFQ - Request for Quotation

Similar to RFP (above).

Restricted Procedure
For high-value public sector contracts (see OJEU) – suppliers are selected by an open first-
round invitation eg a PQQ (see Pre-qualification Questionnaire). Any prospective supplier
can apply to be included in the restricted list for the contract. Those suppliers who then
meet the required criteria or ‘qualify’ will then be invited to tender. NB This is the most
common type of tender for high-value contracts.

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Schedule of Rates
Lists of jobs, like those in bills of quantities except that they contain no quantities. Rates
may be inserted by tenderers, or by clients. In the latter case, tenderers specify their overall
percentages on or off these rates.

SLA - Service Level Agreement -

A mechanism for helping a service provider and its customers achieve a shared
understanding about services and service delivery. An SLA is a tool that helps manage the
expectations, clarify responsibilities, and provide an objective basis for assessing service

See also Key Performance Indicators.

A list of suitable prospective suppliers that has been drawn up through a preliminary
evaluation exercise for a particular contract or procurement activity

SMEs - Small and Medium-sized Enterprises

Official term – SME’s are firms that employ less than 250 people and have a turn over of less
than €50m.

Society of Procurement Officers in Local Government – SOPO

With over 2,500 members, SOPO engages in a range of activities to promote its strategic
purchasing, contracting and supplies functions. It is also a platform to share best practice
and influence the national agenda on how "Best Value" is to be achieved.

A description of requirements and standards to which the goods, works or services should
conform. Also known as a statement of needs, a statement of requirement, an operational
requirement, or a brief. Its purpose is to present prospective suppliers with a clear, accurate
and full description of the organisation’s needs, to enable them to propose a solution to
meet them.

Stage Payments
An agreed percentage or part of the contract price, which is payable when specified stages
of completion/delivery have been reached.

Individuals, groups or organisations that are affected by and/or have an interest in a
particular issue or organisation eg customers, partners, employees, shareholders, owners,
government, and regulators.

Standstill Period
Once the buyer has announced who it intends to award the contract to, a “standstill peiod

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will follow. This is when suppliers can ask for feedback on the award decision and also
challenge the decision if they wish to.

A technique for outlining the contents of each section of a tender response, bid or proposal.
There are several organisations, such as Sant, Concurrence and Pragmatech, who provide
software specifically for the purpose of producing tender responses quickly and effectively.

The process where a contractor assigns part of the contract to another contractor(s)

Supplier Engagement
In simple terms, working with suppliers to achieve mutual goals – as opposed to ‘them and
The website for accessing low-value public sector contracts You can
register for free and get free notification of opportunities in your local area for your
business (if you want to get notifications outside of your local area or detailed alerts, you
need to pay to upgrade).

Supply Chain
The flow of resources into and out of the enterprise's collective operations eg an IT supply
chain is the flow of resources into and out of its IT operations. The chain can be said to start
with the suppliers of your suppliers and ends with the customers of your customer.

Sustainable Development
A widely-used and accepted international definition is: 'development which meets the
needs of the present without compromising the ability of future generations to meet their
own needs' e.g. the environmental and social impact of today’s actions that may affect the
ability of future generations.

Sustainable Procurement
The application of sustainable development principles to procurement (see above).

Tender / Tendering
A formalised process of bidding for work or contracts. See ITT.

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Tenders Electronic Daily – TED
The official website for EC tender information and publishes the
Official Journal of the European Union (see OJEU).

Tier 1 Supplier
An organisation at the top of the supply chain providing goods or service directly to the end
client – also known as the Main Contractor.

Transfer of Undertakings (Protection of Employment) – TUPE

These regulations are designed to protect the rights of employees in a transfer situation e.g.
when there is a change in supplier (often when contracts are tendered) or when a facility is
first outsourced. This enables affected employees to enjoy continuity of employment
keeping the same terms and conditions. TUPE 2006 entirely replaces the Transfer of
Undertakings (Protection of Employment) Regulations 1981 (SI 1981/1794) which have
often been referred to as the TUPE regulations.

Represent the beliefs within an organisation and are demonstrated through the day-to-day
behaviours of its employees.

Value for Money

The provision of the right goods and services from the right source, of the right quality, at
the right time, delivered to the right place and at the right price (judged on whole life costs
and not simply initial costs)

A statement describing how an organisation wishes to be in the future.

Also see Mission Statement.

Whole Life Costs

The systematic consideration of all relevant costs and revenues associated with the
acquisition and ownership of an asset.

Works or Programme of Works

Definition of the tasks and elements to be supplied under (usually) a construction or
building services contract.

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Appendix One:
Glossary of Terms & Abbreviations used specifically in the NHS

National guidelines for pay and working conditions for all

Agenda 4 Change
NHS staff (excluding doctors).
An order number raised by a Buyer which can then be
used by the end user department each time they wish to
Call Off Order replenish stocks of the same product. The goods can be
ordered at any interval and at any quantity within the
confines of the Purchase Order.
Expenditure related to land, premises, equipment, and
Capital vehicles etc which exceed £5,000 – the provision
adaptation, renewal or replacement.
Cash Releasing A genuine reduction in unit cost, for which there is an
Savings identified budget.
Cost Improvement Programme. Each Divisions plan of
how they will achieve annual savings against existing
budgets to work towards the Trust’s overall FRP (Financial
Recovery Plan).
CIPS Chartered Institute of Purchasing & Supply (qualification).
A health professional that is directly included in patient
care – e.g. Doctors, Nurses, Therapists etc.
A maintenance engineer will not only provide planned
preventative maintenance checks at regular intervals but
the maintenance contract will also cover emergency call
out situations (this often includes the provision of spare
A saving made on what would have been spent but with
Cost Avoidance
no existing budget available to link this saving to.
eProc The new purchase order system from 1st April 2006.
In house engineers will have had the necessary training to
Front Line deal with routine checks and problems with the
Maintenance equipment before a service engineer from the
maintenance contractor is called out.
Financial Recovery Plan. (The Supplies Department as part
of their remit within the Finance Division has a joint
FRP responsibility with each Division to contribute to the
Trust’s FRP by ensuring priority is given to negotiating
areas of spend with the potential to make large savings).
Goods Received Note. Confirmation by Receipts and
Distribution that the goods have arrived on the Trust

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premises. Invoices will be paid once the goods have been
booked in on the purchase order system.
Knowledge and Skills Framework – each post has pre
KSF agreed definitions of the knowledge and skills required by
all post holders to review and develop staff.
Logistics on Line. The on-line catalogue for all NHS
Logistics items.
National certification issued by the Purchasing & Supply
Master Indemnity Agency which confirms that the Supplier has adequate
Agreement insurance to indemnify themselves against all risk of harm
from their product\service, when is use by the Trust.
Medical Devices Management Committee, chaired by the
Medical Director to agree the purchase of all replacement
medical devices over £5K and to discuss and agree
MDMC recommendations for medical devices which have
contentious issues surrounding their use. There are also 6
subgroups which feed into the main Committee. For more
information refer to the Trust’s Medical Devices Policy.
Medical Equipment Form for all medical devices. For
ME Form
further details refer to the Trust’s Medical Devices Policy.
Medical A form used to confirm the method and cost of disposing a
Equipment piece of Trust owned equipment. For further details refer
Disposals Form to the Trust’s Medical Devices Policy.
Items which cannot be purchased from NHS Logistics or
Non Stock
automatically via the Oracle System. Likely to be one off
requirements or non standard items required by all Trusts.
National Supplies Vocabulary Code for all items raised on
NSV the purchase order, individually raised each time a new
product code is added to the system.
Official Journal of European Union. Journal in which all
prospective tender exercises need to be advertised if total
(Formally OJEC)
contract value is likely to be more than £100K.
The new purchase order and finance system which will be
fully implemented by 1st April 2006. Customers can buy
off all agreed catalogues which will be maintained by the
Supplies Department.
Purchasing and Supply Agency. Part of the Department of
PASA Health responsible for national procurement initiatives
and work closely with local supplies department.
Personal Development Plan. Provided as an outcome
following Annual Performance Review.
Purchase Order Number raised using the relevant supplies
system and must be quoted On all invoices to ensure

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prompt payment. Once an order is raised a copy is sent to
both the supplier and to the customer, who should retain
it with the requisition.
Procurement of Information Systems Effectively. A
POISE national model to guide IT people who are responsible for
IT Procurement through the required stages.
Planned Preventative Maintenance. A maintenance
engineer will visit at pre-agreed intervals to service the
equipment. However if the engineer is required outside of
these dates a call out fee will be charged.
Standard form from which Supplier needs to complete for
Pre Purchase
all electro-medical devices. Supplies will arrange for
A questionnaire designed in conjunction with the Supplies
Pre Qualification
Department to reduce the number of prospective
Formal offer made by the Supplier. It is mandatory for an
invitation to quote to be sent out by Supplies for
goods\services over £5K. Recommended for spend under
this value. Documentation which confirms the Trusts
Conditions of Offer and includes pricing and product
literature from the Supplier.
Requisition forms detailing requirements and which
Req’s budget to be charged for purchase - can be non stock,
stock or charitable fund req’s.
Spend other than capital e.g. consumables, leasing
budgets, maintenance staff or drug budgets plus all spend
under £5K.
New shared business services (replacement to Hampshire
SBS \ Xsanza
Shared Financial Services)
Standing Financial Instructions. Document issued by the
Director of Finance confirming the Financial Controls and
Procedures in place regarding how the Trust’s money
should be spent and individuals sign off limits.
Purchase Order raised by a Buyer and sent to the supplier
to confirm a standard regular delivery of a product or to
Standing Order
allow for set payments to be made by the Trust at regular
Managed by local Supply Chain Teams who replenish on
Stock Purchasing
the customer’s behalf from general lists of items.
Formal offer made by the Supplier. It is mandatory for an
Tender invitation to quote to be sent out by Supplies for
goods\services over £5K but often recommended for

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spend under this value if the requirement is complex and
would better suit a tender as opposed to a quotation
exercise (e.g. if the specification of requirements or pricing
proposals are complex).
Group chaired by the Director of Operation Performance
who meet monthly to agree service developments and the
Trust Planning
financial and equipment resources required to enable the
development. Often cross over with MDMC Group. Both
have Supplies representation.
Basis on which a decision will be made on preferred
Weighting \ supplier. Will consider clinical\ technical evaluations,
Evaluation quality, ongoing support, financial, maintenance issues
Criteria etc. This needs to be agreed with Supplies prior to the
dispatch of the tender document.

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