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11
Developed by the European Union as a classification system, CPV (Common Procurement Vocabulary) codes have been developed to help suppliers find relevant contract and to help procurement professionals classify their contract notices.
BiP Solutions have created an online tool for browsing the latest CPV–2007 code hierarchy. Simply enter the description of the products or services you are interested in and view the relevant CPV codes.
| Added Value | Features and benefits that you offer which exceed the specification for the contract. |
| Best Practice | The most effective and desirable method of performing a task or completing a service. The preferred way of working. |
| Call off Contract | An enabling agreement (framework) with one or more suppliers for a defined range of works, goods or services covering terms and conditions from which users ‘call off’ to meet their requirements using a simplified contract form. |
| Contract | A binding agreement to perform a certain service or provide a certain product in exchange for valuable consideration, usually money. |
| Equality | Equality is about making sure people are treated fairly and given fair chances. Equality is not about treating everyone the same way but it recognises that their needs are met in different ways. |
| E-tendering | The process of using any online system in procurement to view and submit tenders electronically. |
| European Union Regulations (EU Regs) | There are rules and regulations set by the European Union with regard to procurement for public sector organisations – these rules and regulations are set to protect suppliers and must always be followed by all public sector organisations. |
| Evaluation | The process of assessing each bidders tender so as to be able to select the best option suitable to the requirements of the contract. |
| Feedback | Discussion with a public sector organisation to find the reasons for success or failure of a tender so as to learn how to respond effectively in future. |
| Framework agreement | An arrangement where a purchaser selects suppliers and fixes terms and prices for a period in advance (often 4 years as the max), and then calls on the suppliers to deliver as and when required. There is never a guarantee of work even if you are part of a framework agreement. |
| Invitation to Tender | A formal communication from a public sector organisation to a supplier inviting it to submit a tender. The ITT will usually also include a specification for the contract, instructions for submitting the tender, and the terms and conditions, which will govern the contract once it is active. |
| Lot | Some contracts are divided into a number of parcels of work (called lots) and suppliers are invited to state whether they are bidding for the whole contract or just parts of it. |
| OJEU (Official Journal of the European Union) | The Official Journal of the European Union, where all contract notices must be published for tenders that fall within the European procurement laws. |
| Prior Information Notice | This gives advance notice that a contract may be advertised at some point – perhaps later in the year. |
| SQ | A questionnaire used by public sector organisations to check the suitability of suppliers and shortlist the ones to be invited to tender. |
| Procurement | The process of buying goods and services. |
| Purchasing | The buying of goods and services. |
| UK Regs | The Public Contracts Regulations 2015 |
| Value for Money | Public sector organisations strive to achieve ‘value for money’ and this is not necessarily the lowest price. |
| Variant bid | Variant bids can be used to deliver innovation and enhance value for money. They are a useful tool to promote innovative approaches, but ensure you take advice to manage the opportunities and risks. |
| 1PL | First Party Logistics |
| 2PL | Second Party Logistics |
| 3PL | Third Party Logistics |
| 4PL | Fourth Party Logistics |
| 5PL | Fifth Party Logistics |
A |
|
| ACH | Automatic Clearing House |
| ADR | Alternative Dispute Resolution |
| ARR | Average Rate of Return or Accounting Rate of Return |
B |
|
| BAFO | Best and Final Offer |
| BATNA | Best Alternative to a Negotiated Agreement |
| BAU | Business as Usual |
| BOOM | Contract Builds, Owns, Operates and Maintains Contract |
| BOOT | Contract Builds, Owns, Operates and Transfers Contract |
| BPO | Business Process Outsourcing |
C |
|
| CAPEX | Capital Expenditure |
| CBA | Cost Benefit Analysis |
| CCA | Competition and Consumer Act 2010 |
| CFR | Cost and Freight |
| CIF | Cost, Insurance and Freight |
| CIP | Carriage and Insurance Paid |
| CIPS | Chartered Institute of Procurement and Supply |
| CIPSA | Chartered Institute of Procurement and Supply |
| CLAN | Centre Led Action Network |
| CO | Certificate of Origin |
| COGS | Cost of Goods Sold |
| CPO | Chief Procurement Officer |
| CPT | Carriage Paid To |
| CSR | Corporate Social Responsibility |
D |
|
| DAP | Delivered at Place |
| DAT | Delivered at Terminal |
| DDP | Delivered Duty Paid |
| DIFOT | Delivery In Full and On Time |
| DMAIC | Define Measure Analyse Improve Control |
E |
|
| EAN | European Article Number or International Article Number |
| EBIT | Earnings Before Interest and Tax |
| ECR | Efficient Consumer Response |
| EDI | Electronic Data Interchange |
| EOI | Expression of Interest |
| EOQ | Economic Order Quantity |
| EPC | Engineer Procure and Construct |
| EPCM | Engineering Procurement and Construction Management |
| EPIC | Engineer Procure Install and Commission |
| EPICOM | Engineer Procure Install Commission Operate and Maintain |
| ERP | Enterprise Resource Planning |
| EXW | Ex Works |
F |
|
| FAS | Free Alongside Ship |
| FCA | Free Carrier |
| FCL | Full Container Load |
| FIFO | First in, First Out Costing |
| FMEA | Failure Mode and Effects Analysis |
| FOB | Free on Board |
G |
|
| GHG | Greenhouse Gases |
H |
|
| HAZCHEM | Hazardous Chemical Alert |
I |
|
| IMF | Intermodal Freight Containers |
| INCOTERMS | International Commercial Terms |
| IP | Intellectual Property |
| ITO | Invitation to Offer |
K |
|
| KPI | Key Performance Indicator |
L |
|
| LC | Letter of Credit |
| LCCS | Low Cost Country Sourcing |
| LCL | Less than Container Load |
| LIFO | Last In First Out |
| LOI | Letter of Intent |
M |
|
| MRO | Maintenance Routine Operating Categories or Maintenance, Repair and Overhaul |
| MRP | Materials Requirements Planning |
| MRP II | Manufacturing Resource Planning |
| MSDS | Materials Safety Data Sheet |
| MTBF | Mean Time Before Failure |
| MTBUR | Mean Time Before Unscheduled Removal |
| MTO | Make to Order |
| MTS | Make to Stock |
N |
|
| NPV | Net Present Value |
P |
|
| PCard | Procurement Card |
| PEST Analysis | Political, Economic, Social and Technological Environments Analysis |
| PO | Purchase Order |
| PPCA | Profit, Price and Cost Analysis |
| PPP | Public Private Partnership |
R |
|
| RFI | Request for Information |
| RFID | Radio-Frequency Identification |
| RFP | Request for Proposal |
| RFQ | Request for Quotation |
| RFT | Request for Tender |
| ROCE | Return on Capital Employed |
| ROI | Return on Investment |
| RONA | Return on Net Assets |
S |
|
| SBR | Supply Base Reduction |
| SLA | Service Level Agreement |
| SME | Small and Medium Sized Enterprises or Subject Matter Expert |
| SRM | Supplier Relationship Management |
T |
|
| TPS | Toyota Production System |
U |
|
| UNSPSC | United Nations Standard Products and Services Code |
W |
|
| WACC | Weighted Average Cost of Capital |
[1] Source – Public Expenditure Statistical Analyses (PESA) 2015, using 2014-15 figures. This is the National Accounts definition of current procurement, so includes defence spending on Single Use Military Equipment (SUME).
[2] GOV.UK, Big opportunities for small firms: government set to spend £1 in every £3 with small businesses, https://www.gov.uk/government/news/big-opportunities-for-small-firms-government-set-to-spend-1-in-every-3-with-small-businesses
[3] Source: BiP Solutions Research team, 2015
