||The formal acceptance of a
supplier's bid or proposal by a government agency. Following such
acceptance, the agency usually issues a purchase order to the vendor
reflecting the award.
||An offer or proposal for goods and/or services submitted in
response to a government agency’s invitation.
||The set of documents issued by a government
agency that establish the object of the bidding (the technical specifications), specify proposed contract
conditions and establish the bidding procedure to be followed. In a broader sense,
this is the group of documents that determines the contractual conditions to be
established between the supplier or contractor and the agency.
||Government procurement takes place through different types of
methods or tendering. There are three main types of tendering: open (or unlimited)
procurement, selective procurement (restricted to pre-selected categories of suppliers,
invited to bid) and limited (or negotiated) procurement, including individual,
sole-source, single-source or direct tendering. In addition to formal tendering procedures,
countries also use “informal” methods, such as requests for proposals and requests for
quotations (where procuring entities seek detailed technical and cost proposals, on
the basis of which they hold negotiations with prospective providers) or novel methods
of procurement, such as purchase cards or electronic catalogues, brought forward by
the increasing use by national administrations of information and communication
||The formal process through which official government agencies
obtain goods and services, including construction services or public works. It also
includes all functions that pertain to the obtaining of any goods, service, or
construction, including description of requirements, selection and solicitation of sources,
evaluation of offers, preparation and award of contract, dispute and claim resolution and
all phases of contract administration. In GATT language, government procurement
means the process by which a government obtains the use of or acquires goods
or services, or any combination thereof, for governmental purposes and not with a
view to commercial sale or resale, or use in the production or supply of
goods or services for commercial sale or resale.
Government Procurement Agreement (GPA)
||A plurilateral agreement negotiated during the Tokyo Round to
ensure that government purchases of goods and services entering into
international trade are based on specific, published regulations that prescribe open procedures
for submitting bids; to improve transparency in national procurement practices; and to
ensure effective recourse to dispute settlement procedures. The agreement was
renegotiated during the Uruguay Round, becoming effective 1 January 1996.
Limited tendering/ Direct contracting
||Contracting with a firm that is selected without competition.
Notice of invitation (Solicitation)
The process used to communicate procurement requirements and to
request responses from interested suppliers.
||Also referred to as “public bidding,” the formal, public, and
competitive procedure during which offers are requested, received and evaluated for goods
or services and after which the related contract is awarded to the bidder that
complies with the conditions specified in the notice of invitation. It involves a
series of stages, acts or steps that must follow rules prescribed in the bidding documents.
The procedure consists of: (i) a public invitation directed to all those with a
possible interest in presenting offers; followed by (ii) an evaluation stage to select
the offer most advantageous to the owner and finally (iii) the award of the
method similar to open/public tendering, except that the invitations
to bid are not issued to the public in general but only to firms
selected by the procuring agency. In general, the same procedures are
used as for competitive bidding. It may include a prequalification,
this is a step in the bidding process in which the agency first
selects the firms to whom invitations to bid will later be issued.
Government agencies that obtain goods and services by methods subject
to the procurement provisions of the Agreement. Countries may not
subject all entities to the rules of the agreement, but usually
maintain exclusions with respect to entities within sensitive sectors
and those carrying out special programs.
Special conditions imposed on tenders by government agencies,
sometimes requiring commitments to purchase given supplies locally, or
to ensure the employment of a specified percentage of local labor and
management. See Investment, page 34 and Tariff and Non-tariff
Measures, page 44, where this text may have a slightly different
Public bid opening
formal date, time, and location where and when sealed bids requested
by a agency will be opened, announced, and available for review by the
specification that lays down the characteristics of goods to be
procured or their related processes and production methods, or the
characteristics of services to be procured or their related operating
methods, including the applicable administrative provisions, and a
requirement relating to conformity assessment procedures that an
entity prescribes. A technical specification may also include or deal
exclusively with terminology, symbols, packaging, marking or labeling
requirements, as they apply to a good, process, service or production
or operating method.
Provisions related to procedural steps, such as, but not exclusively,
the initial announcement and dissemination of information about a
tender; the definition and dissemination of criteria for prospective
bidders; the establishment of timelines and guidelines for preparation
and submission of bids; information about the type of award procedure
being used; the definition and dissemination of criteria used to
evaluate the quality and competitiveness of a given bid; and the
availability of avenues for challenging given awards.
most national legislations, the determination of the type of tendering
applicable to a specific procurement is based on the value of the
procurement. Thresholds often differ for goods, services and public
works. Some international agreements use thresholds to determine
procurement subject to the provisions of the Agreement.