Glossary
All procurement terms explained, from A to Z.
A
Contracting authority
Government body or body governed by public law obligated to apply the Procurement Act when awarding contracts.
Procurement Decree
Decree with additional rules under the Procurement Act, including electronic procurement and the ESPD.
Dutch Public Procurement Act 2012
The primary Dutch law containing rules for public contracts, effective since April 1, 2013.
Contract notice
Official publication of a procurement procedure on TenderNed and/or the Official Journal of the EU (TED).
Abnormally low tender
A tender whose price appears abnormally low relative to the requirements. The contracting authority must request clarification before rejecting.
General Government Terms for IT
Standard contract terms of the Dutch central government for IT contracts.
ARVODI (Government Terms for Services)
General Government Terms for awarding service contracts.
B
Evaluation committee
Group of persons responsible for evaluating tenders based on the established award criteria.
Reliance on third parties
Invoking the capacities of other organizations to meet suitability requirements, provided those organizations are actually made available.
Specifications / Tender documents
The document containing the complete description of the contract: technical specifications, requirements, award criteria, contract conditions, and procedures.
Most Economically Advantageous Tender (MEAT)
Award criterion where both price and quality are considered. The tenderer with the best balance between price and quality wins.
Bonus/penalty arrangement
Contractual arrangement where the contractor receives a bonus for good performance and a penalty for underperformance.
C
Circular procurement
Procurement focused on reuse, repair, and recycling of materials. Part of SPP.
Clustering (combining)
Combining multiple contracts into one larger contract. Must be justified and is only permitted when proportionate.
CO2 Performance Ladder
Certification instrument encouraging companies to reduce CO2 emissions. Often applied as award criterion or fictitious discount in procurement.
Consortium / Joint venture
Cooperation of multiple economic operators who jointly submit a tender.
Committee of Procurement Experts
Independent advisory body that handles complaints about procurement procedures and issues non-binding advice.
Concession
Agreement where the consideration is not (only) payment, but the right to exploit the delivered works or services.
Competitive dialogue
European procedure for complex contracts where the contracting authority enters into dialogue with selected participants to develop a solution.
Contract management
Active management and monitoring of contract execution after award, including performance measurement and relationship management.
CPV code
Common Procurement Vocabulary: 8-digit classification code describing the subject of a public contract.
CPV division
The highest level in the CPV hierarchy, indicated by 2 digits. Example: 45 = Construction work.
D
DBFMO
Integrated contract where the contractor is responsible for design, build, finance, maintain, and operate.
Threshold amount
The amount that determines whether a contract must be tendered at European level. Set biennially by the European Commission.
Sustainable procurement
Integrating environmental criteria in the procurement process, aimed at minimizing the environmental impact of products and services.
Extreme urgency
Exceptional circumstance justifying the use of an accelerated or negotiated procedure, not caused by the contracting authority itself.
Dynamic purchasing system (DPS)
Fully electronic procurement process for commonly used purchases. Remains open for new participants throughout its duration.
E
MEAT (old terminology)
Former term for the award criterion considering price and quality. Replaced by BPKV in legislation, but still commonly used in practice.
Self-declaration
Declaration by the tenderer that they meet the stated requirements. Used instead of the ESPD in national procurements.
Electronic procurement
Fully electronic handling of the procurement process, from publication to submission. Mandatory for European tenders.
Single source procurement
Procedure where the contracting authority directly awards a contract to one economic operator without competition. Only for small contracts.
European tender
Procurement procedure for contracts above European thresholds, published on TenderNed and TED.
G
Candidate
Economic operator who has submitted a request to participate in a restricted procedure or competitive dialogue.
Equal treatment
The principle that all tenderers can participate under the same conditions and with the same information.
Suitability requirement
Minimum requirement a tenderer must meet to qualify, such as financial standing, technical capability, or professional qualifications.
Guide to Proportionality
Mandatory guideline implementing the proportionality principle in procurement. Operates on a 'comply or explain' basis.
Award on value
MEAT method where quality scores are converted to fictitious price discounts. The tender with the lowest fictitious price wins.
Award (of contract)
The contracting authority's decision to award the contract to a particular tenderer. The standstill period follows the award.
Award decision
The formal written notification to all tenderers about the outcome of the procurement, including justification and scores.
Award criterion
Criterion on which tenders are evaluated and ranked. The three forms are: MEAT, lowest price, and lowest cost.
I
Procurement policy
Policy document of a contracting authority establishing procurement rules, thresholds, and procedures.
Innovation partnership
European procedure for the development and purchase of innovative products, services, or works not available on the market.
Tenderer
Economic operator who has submitted a tender in a procurement.
Tender / Bid
The complete set of documents submitted by an economic operator in response to a tender, consisting of the ESPD, qualitative documents, and price submission.
K
Complaints procedure
Procedure that every contracting authority is obligated to have for handling complaints about the procurement process.
Knock-out requirement
Minimum requirement that a tender must absolutely meet. Non-compliant tenders are declared invalid and not further evaluated.
Summary proceedings / injunction
Urgent court procedure to request an interim measure, for example to block the award of a procurement.
L
M
Socially Responsible Procurement (SPP)
Procurement strategy where governments consider effects on environment, social aspects, and economic sustainability.
Market consultation
Preparatory phase where the contracting authority consults the market about feasibility, specifications, or approach of a future contract.
Market research
Research into the market prior to a procurement to gain insight into available solutions, suppliers, and price levels.
Competitive procedure with negotiation
European procedure where the contracting authority may negotiate with tenderers about all aspects of the contract after receiving initial tenders.
Multiple private tender
National procedure where the contracting authority invites multiple (at least 3) economic operators to submit a quotation. No publication obligation.
SME (Small and Medium-sized Enterprise)
Businesses with a maximum of 250 employees. The Procurement Act contains specific provisions to promote SME access to public contracts.
Justification / Reasoning
The justification of the award decision provided to each rejected tenderer, including the characteristics and advantages of the winning tender.
N
Call-off contract
Individual contract awarded under a framework agreement, according to the terms established therein.
National tender
Procurement below European thresholds, subject to national rules of Part 1 of the Procurement Act.
Restricted procedure
European procurement procedure in two phases: first selection of candidates, then invitation to tender to selected parties.
Non-discrimination
The principle that no distinction may be made based on nationality or place of establishment of the tenderer.
Clarification note
Document containing all questions from potential tenderers and answers from the contracting authority. Published anonymously.
O
Subcontractor
Third party executing part of the contract under the main contractor's responsibility.
Negotiated procedure without publication
Procedure that may only be used in exceptional cases, such as extreme urgency or when only one supplier exists.
Economic operator
Any natural or legal person that offers works, supplies, or services on the market.
Contract value
The estimated total value of the contract excluding VAT, including all options and extensions.
Open procedure
European procurement procedure where any interested economic operator may submit a tender. No pre-selection takes place.
P
Participation Act
Dutch law making municipalities responsible for supporting people who cannot find work independently, including the jobs agreement.
Lot
A separate part of a procurement that can be awarded as an independent contract. Division into lots promotes SME participation.
PIANOo
Centre of Expertise in Procurement: knowledge platform of the Ministry of Economic Affairs supporting contracting authorities.
Plan of approach
Document in which the tenderer describes how they will execute the contract. Often assessed as a quality criterion in MEAT.
Procurement report
Official report of the procurement procedure, including the evaluation and the award decision.
Requirements specification
Document describing the functional and technical requirements that the products, services, or works must meet.
Proportionality
The principle that requirements, conditions, and criteria must be reasonably proportionate to the nature and size of the contract.
Public-Private Partnership (PPP)
Cooperation form where government and private sector jointly realize a project, with risk and revenue sharing.
Body governed by public law
Institution established for general interest purposes, with legal personality, predominantly government-funded or supervised.
R
Framework agreement
Agreement between one or more contracting authorities and one or more economic operators, establishing terms for future contracts over a period (maximum 4 years).
Estimate
The estimation of total contract value excluding VAT used to determine which procurement regime applies.
Legal protection / Legal remedies
The options available to tenderers to challenge decisions of the contracting authority, such as complaint procedures and legal proceedings.
Rectification / Corrigendum
Amendment notice correcting errors or modifications in a previously published contract notice.
Reference / Track record
Previously executed comparable contract serving as evidence of a tenderer's technical capability and experience.
Directive 2014/24/EU
European directive for public contracts in the classic sector. Implemented in the Dutch Procurement Act 2012.
Directive 2014/25/EU
European directive for contracts in special sectors (water, energy, transport, postal services).
S
Selection
The process where the contracting authority assesses whether tenderers meet the exclusion grounds and suitability requirements.
Selection criterion
Criterion for ranking candidates in a restricted procedure. Distinguished from suitability requirements as it enables ranking.
Service Level Agreement (SLA)
Agreements on the minimum service level to be delivered, including performance indicators, reporting, and sanctions.
Social return
Obligation for contractors to employ people distant from the labor market during contract execution.
Social Return on Investment (SROI)
Instrument requiring a percentage of the contract value to be spent on employing people distant from the labor market.
Special sector entity
Organization active in water, energy, transport, or postal sectors subject to a separate procurement regime (Directive 2014/25/EU).
Standstill period
Mandatory waiting period of at least 20 calendar days after the award decision, before the contract may be concluded. Allows rejected tenderers to object.
T
Technical specifications
Description of the technical characteristics that the works, supplies, or services to be delivered must meet.
TED (Tenders Electronic Daily)
Online version of the supplement to the Official Journal of the EU, containing all European tenders from all EU member states.
TenderNed
The official Dutch government procurement platform where all European tenders must be published.
Total Cost of Ownership (TCO)
Method to map all direct and indirect costs of a purchase, including operational costs and disposal.
Transparency
The principle that all information about the procurement must be public and accessible to all potential tenderers.
U
Exclusion ground
Ground on which an economic operator may be excluded from a procurement, such as criminal conviction, tax debts, or bankruptcy.
European Single Procurement Document (ESPD)
Standard form in which the tenderer declares compliance with exclusion grounds and suitability requirements. Replaces individual evidence in the first phase.
V
Request to participate
Application by an economic operator in a restricted procedure to be selected as a candidate.
Prior information notice
Publication informing the market about a future procurement, prior to the formal contract notice.
Reserved contract
Contract reserved for sheltered workshops or social enterprises aimed at the social and professional integration of disabled or disadvantaged persons.
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