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Commissioning and procurement glossary

Bristol City Council May, 2013 Word or phrase Advertising Definition A contract or procurement opportunity will be advertised to bring the opportunity to the attention of potential providers. For contracts over the EU threshold (see thresholds) this is always in the Official Journal of the European Union (OJEU) at a minimum, and is also advertised in relevant media. Bringing together requirements for similar goods, works or services so that they can be addressed in one procurement exercise. Part of the OJEU procedure. This is a mandatory ten day period between notifying the successful and unsuccessful applicants of our decision, and the actual award of contract. Confirmation from the buyer (a local authority for example) that they agree with the proposed terms of contract, thereby creating a binding contract. Arrangements to secure continuous improvement in the exercise of an authoritys functions, having regard to a combination of economy, efficiency and effectiveness as required by the Local Government Act 1999. A contract which guarantees a given volume of business with the service provider, usually enabling the contractor to obtain a reduction in the unit cost of service provided. The Bristol Compact enables better partnership working between Bristol's public sector and voluntary, community and social enterprise (VCSE) sector. The Bristol Compact is owned and implemented by the Bristol Partnership and the Compact partners. It defines and strengthens our working relationships and provides a framework for positive partnership working. The statutory body who lets a contract; eg local authority, NHS, police, etc (see also Commissioners) A structured approach to identifying key categories of goods and services and managing these as business units. Managers/officers who commission services in their respective specialism. The process of specifying, securing and monitoring services to meet peoples needs at a strategic level. This applies to all services, whether they are provided by the local authority, NHS, other public agencies, or by the private and voluntary sectors.


Alcatel period

Award of contract

Best Value

Block contract

Bristol Compact

Buyer Category management Commissioners Commissioning

Commissioning and procurement glossary

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Word or phrase Commissioning Cycle Commissioning Framework Common Procurement Vocabulary codes (CPV) Community Right to Challenge

Definition see Commissioning Framework This is a standardised approach to commissioning , breaking down the process is into the four stages of analyse, plan, do and review, with each stage being dealt with in turn. The list of reference numbers that are used to identify goods and services for procurement purposes so that there is a common understanding of what is required across the EU Member States. One of the Community Rights provided for under the Localism Act 2011 which allows community and not-for-profit organisations to submit an expression of interest (the Challenge) to provide or assist in providing a service. One of the EU procurement processes, usually used only for very complex procurement exercises where discussions with potential suppliers is critical to the tendering process. A group of providers (often smaller organisations) coming together to submit a tender for a contract. Agreement signed by all the members of a consortium which outlines roles, responsibilities, financial arrangements, etc. A period in which commissioners will consult with the range of stakeholders in respect of their commissioning and procurement proposals. Where VCS providers are involved, this period is usually for a period of twelve weeks in accordance with the Bristol Compact see contract documents Notice of an award of a contract published in the Official Journal of the European Union (OJEU) in line with a template provided by the EU, as required by the EU Procurement Directive. Documents incorporated in a legally enforceable agreement between a buyer and seller, such as conditions of contract, specification, pricing document, form of tender and the successful tenderers responses and relevant correspondence. An extension to a contract period which has been identified as an option from the beginning. Eg, a contract might be let as a four year contract with an optional one year extension. The extension is usually agreed if the contractor has performed to the satisfaction of the buyer. Advertisement, in line with a template provided by the EU, published in the Official Journal of the European Union (OJEU) by contracting authorities seeking expressions of interest or inviting companies to tender.

Competitive dialogue Consortium Consortium agreement Consultation period

Contract Contract award notice

Contract documents

Contract extension

Contract notice

Commissioning and procurement glossary

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Word or phrase Contractor Decommissioning

Definition Organisation awarded the contract having undertaken a procurement process. The process of planning and managing a reduction in service activity or terminating a contract in line with commissioning objectives. An internet based facility that enables trade between one or more purchasing organisations and a variety of suppliers. The impact that the delivery of the contract can have on the environment. The use of electronic methods in the procurement process. These can be used every stage of the purchasing process from identification of requirement through to payment, and potentially to contract management. Compliance with the Equality Act 2010, and the Public Sector Duty contained in the Act. Procurement legislation that is binding on all EU Member States but which must be implemented through national legislation. This has been incorporated into law in England, Northern Ireland and Wales by the Public Contracts Regulations Statutory Instrument 2006 No 5. Detailed assessment and comparison of potential providers proposals against financial and/or quality criteria. A response by a potential provider to a notice or advertisement informing potential providers of an opportunity to tender for services. NB: not to be confused with the Expression of Interest under the Community Right to Challenge see contract extension These are internal regulations which ensure that public accountability and high standards of financial integrity are exercised in the use of public funds. An agreement usually with two or more providers, for delivery of an unspecified level of goods, works or services over a specified period, under which contracts can subsequently be entered into (called offs) subject to the limitations of the agreement. An alternative funding mechanism.

e-marketplace Environmental impact e-procurement

Equality Duty EU Procurement Directives

Evaluation Expression of Interest

Extension periods Financial Regs

Framework agreement


Commissioning and procurement glossary

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Word or phrase Invitation to tender (ITT)

Definition (i) In a restricted tender process (two stage), potential providers who have been shortlisted after evaluation of the PPQ will be invited to download a set of tender documents, then complete and submit them. (ii) In an open tender process (one stage), it is the placing of an advertisement which effectively invites potential suppliers to download a set of tender documents, then complete and submit them. Commissioning with one or more partners, either internally or externally Measures against which providers can evaluate how successful they have been in meeting their contractual obligations. KPI are normally detailed in the specification. A genuine pre-estimate of the loss the buyer will suffer if the provider defaults when performing the contract. One of a number of categories of goods or services which a single procurement process has been divided into. The use of lots potentially allows for multiple providers to be appointed following one procurement process. A scaled-down tender process when deciding who to award work to as part of a framework agreement. Tenders are evaluated on a combination of value for money, having regard to price, quality and best value. Official Journal of the European Union; contracts that fall within the EU procurement directive thresholds need to be advertised in OJEU. These are sometimes referred to as OJEU contracts. A one stage tender process where any organisation can express an interest and request tender documents. Applicants provide financial and organisation details as well as a response to the tender documentation. A parent company guarantee binds the guarantor (the parent company) to fulfil and complete a subsidiary companys obligations and liabilities in the event of a failure by that subsidiary to fulfil the terms of a contract. Contracts for goods and services which need to be procured in accordance the processes set down in the EU Procurement Directive Services listed in the EU Procurement Directive, including some health and social care requirements, which do not need to comply with all of the regulatory requirements. However, the procurement exercise still needs to adhere to the EU Treaty of Rome principles of fairness, transparency and competition.
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Joint commissioning Key performance indicators (KPI) Liquidated damages Lots

Mini-tender Most Advantageous Economic Tender (MEAT) OJEU

Open procedure

Parent company guarantee

Part A

Part B

Word or phrase Payment by results

Definition Part or all of the payment is paid on delivery of specific results; usually used on outcome based contracts, and often in conjunction with social impact bonds. It should allow provider organisations to deliver the results in a way that they chose, while innovating and being held accountable for the results. A clause in a contract which allows for a penalty to be raised against a provider for non-performance of their delivery of the contract. Bonds or guarantees given to buyers 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. An organisation who is not yet in a contract with the authority but who has the potential to do so. In a restricted procedure (two stage), this is a questionnaire completed by potential providers who wish to be considered for a procurement activity, which allows assessment on key fundamental areas and the production of a shortlist of potential providers. see pre-qualification questionnaire (PQQ) The contractor appointed by the authority having undertaken the full procurement process. A notice lodged with OJEU indicating the authoritys intention to go out to tender at some stage, which gives the provider market notice prior to the tender being advertised. It might also include other information such as notification of a market engagement session. Bristol City Councils e-procurement system ( The process of acquiring goods, services and construction projects from providers/suppliers and managing these through to the end of the contract or disposal of assets. Plus the overarching activities that corporately maximise effectiveness, efficiency and value for money from this process. These are the rules that must be followed by the authority for the procurement of goods, services or works; and/or for the award of any concession or licence. This type of liability cover provides protection for negligent advice or a service provided by a contractor. This is the Bristol City Council internal name for the Proactis e-procurement portal: see Proactis

Penalty Clause

Performance bonds

Potential provider Pre-qualification questionnaire (PQQ)

Pre-tender questionnaire (PTQ) Prime contractor Prior information notice (PIN)

Proactis Procurement

Procurement Regulations (BCC's internal regulations) Professional indemnity insurance Provide to Bristol

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Word or phrase Provider PtB Public Contracts Regulations 2006

Definition see Contractor. see Provide to Bristol Procurement legislation which incorporated the EU Procurement Directive into law in England, Northern Ireland and Wales. The full name is Public Contracts Regulations Statutory Instrument 2006 No 5. Public Liability Insurance covers any awards of damages given to a member of the public because of an injury or damage to them or their property caused by you or your business. This act requires an authority to consider what contribution a proposed procurement can make to the social, economic and environmental wellbeing of the relevant area, and to consider how this can be incorporated into a subsequent contract. There is a requirement to consider what consultation (if any) needs to be undertaken. It is closely related to sustainable procurement. It is different to the social value that an organisation might believe it has. A response to a tender which does not answer the questions asked but provides an alternative, unsolicited, way of delivering a contract. Qualified bids are disqualified from the evaluation process. A written request from a buyer to a potential provider/s, asking for the price of meeting a requirement. Used for lower value requirements as an alternative to an Invitation to Tender. This is a two stage procurement process. Organisations expressing an interest undergo an initial pre-qualification assessment (see PQQ). Following evaluation of this stage (the first stage), only the most suitable applicants are invited to tender (second stage). This is the commonest process used in procurement. The probability of an unwanted event occurring and its subsequent impact. Bristol City Councils Strategic Commissioning and Procurement Service Small and Medium Enterprise organisations which fall into employee and turnover parameters. Small enterprise 50 employees and below and turnover of less than 10M; medium enterprise 250 employees and below and turnover of less than 50M. Social Impact Bonds usually form part of an outcomesbased contract in which public sector commissioners commit to pay for significant improvement in social outcomes. (see -
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Public liability insurance

Public Sector (Social Value) Act 2012

Qualified bid

Request for quote (RFQ)

Restricted procedure


Social impact bonds

Commissioning and procurement glossary

Word or phrase Spot purchasing

Definition Procuring on an as and when needed basis rather than planning the procurement strategy that might achieve the best value for money. see Alcatel period An organisation that is appointed by the prime contractor to undertake work on its behalf. (see prime contractor) Procurement which takes into account social, economic and environmental issues; closely related to social value as defined under the Public Services (Social Value) Act 2012. TED (Tenders Electronic Daily) is the online version of the 'Supplement to the Official Journal of the European Union', dedicated to European public procurement. ( The allocation of obligations and risk incurred in the delivering the relevant contract; these form part of the contract documentation. The financial parameters at which different contracting processes are used; eg the threshold for EU level tenders for goods and services is currently 173,934. The Transfer of Undertakings (Protection of Employment) Regulations which aim to safeguard employment rights of employees transferring to a new employer. The buyer invites responses to a tender, but at the same time the buyer also provides an opportunity for a potential provider to provide an alternative response. This is different to a qualified bid whereby the alternative response is unsolicited by the buyer. Value for money. All relevant costs associated with the acquisition, ownership and disposal of goods, services or works.

Standstill period Sub-contractor Sustainable procurement Tenders Electronic Daily (TED)

Terms and conditions Thresholds


Variant bid

VFM Whole life costs


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