Preparing for the Procurement Act 2023

Term

Definition

Assessment Methodology

The methodology used by the CA when assessing tenders against the award criteria. For example, what scoring matrices will be used.

Assessment Summary

Letter which is sent to Bidders on completion of the procurement process which summarises the Contracting Authority’s assessment of their bid.

Award Criteria

The criteria set by the CA against which tenders are assessed during a competitive tendering procedure. These criteria must relate to the subject-matter of the contract and must be sufficiently clear, measurable, and specific.

Below Threshold Contract

Broadly a contract of ‘lower value’ (defined in relation to the thresholds set out in Schedule 1 of PA23) compared to an above threshold/ ‘covered procurement’.

Below Threshold Notice

A mandatory notice where a CA is advertising a notifiable below threshold contract to invite competition.

Below Threshold Contract Details Notice

A mandatory notice which must be published by a CA when certain financial thresholds are met (regardless of whether there was a Below Threshold Notice).

CA (Contracting Authority)

The public body responsible for awarding contracts.

Central Digital Platform

Where opportunities will be advertised, transparency notices will be published and other information (such as a copy of the contract which is entered into with successful bidders in certain circumstances). The platform also stores Supplier’s basic information plus economic/financial information and will also host the Debarment List.

CFP (Competitive Flexible Procedure)

Means a procurement procedure which is not an ‘Open’ procedure. CA’s have significant flexibility in the way that they design a competitive flexible procedure, which may include multiple stages and interaction/ negotiation with suppliers.

CQs (Clarification Questions)

Questions from suppliers to the authority and vice versa to clarify parts of a tender.

Conditions of Participation

Set of conditions set by the CA as part of a procurement process that require suppliers to demonstrate their legal, financial and technical ability to perform the contract.

Conditions of Tendering

The rules of the procurement process which sets out how the CA will conduct the procurement, including all and any procedural requirements.

Conflict Assessment

An assessment of any actual/potential conflicts of interest identified and steps taken by a CA to mitigate them.

Conflict of Interest

This may be an actual, potential, or perceived conflict and may arise in a procurement context where there is a conflict between the interests of a person acting in relation to a procurement and those of the procurement itself.

Contract Award Notice

A mandatory notice which must be published by a CA when awarding a contract. Triggers the Standstill Period.

Contract Change Notice

A mandatory notice which must be published by a CA when a contract is modified. Exceptions apply.

Contract Details Notice

A mandatory notice which must be published by a CA after a contract is signed, includes details of the KPIs (Min. 3 for public contracts above £5m).

Contract Management

Contract management involves preparing, signing, and managing agreements to ensure both parties meet obligations, as well as reducing risks, and improving efficiency, quality, and value for money and monitoring the supplier’s performance against any stated KPIs.

Contract Performance Notice

A mandatory notice that must be published by a CA annually or at termination, includes detail of performance against KPIs included in the Contract Details Notice.

Contract Termination Notice

A mandatory notice which must be published by a CA when a contract is terminated. Exceptions exist.

Covered Procurement

Means the award, entry into and management of a public contract.

CPN (Competitive Procedure with Negotiation)

A procurement method under PCR 2015 that includes negotiation with suppliers.

DBT (Department for Business and Trade)

The UK government department for business and trade.

Debarment List

A list if suppliers, set up by Ministers, which identifies whether a Supplier has been excluded from a covered procurement on the basis of a mandatory or discretionary exclusion ground. Inclusion on the list means that the supplier’s past behaviour or circumstances mean that it is not, or may not be, allowed to participate in covered procurements or be awarded public contracts.

Dialogue

A conversation about the procurement with suppliers during the CFP.

Direct Award

When a contract is awarded to supplier without a competition, or where there is a material change to an existing contract.

DM (Dynamic Market(s))

A list of qualified suppliers (i.e. suppliers who have met the ‘conditions for membership’ of the dynamic market) who are eligible to participate in future procurements; with suppliers only eligible to participate in procurements for the parts (categories) for which they have qualified.

Dynamic Market Notice

Mandatory notice which must be published by a CA before establishing a dynamic market.

Ethical Wall Agreement

A process for managing conflicts of interests, which may (for example) limit disclosure of information by certain individuals within an organisation to other individuals from the same organisation.

Excludable Supplier

Where a discretionary exclusion ground applies, and the CA believes the circumstances giving rise of it are continuing/likely to occur again, such that the supplier may be excluded from the procurement process. Or the Supplier is on the Debarment List on the basis that it has been excluded from a covered procurement pursuant to one of the discretionary exclusion grounds.

Excluded Supplier

Where a mandatory exclusion ground applies, and the CA believes the circumstances giving rise of it are continuing/likely to occur again, such that the supplier must be excluded from the procurement process. Or the Supplier is on the Debarment List on the basis that it has been excluded from a covered procurement pursuant to one of the mandatory exclusion grounds.

Exclusion Regime

The exclusions regime enables, and where appropriate requires, the exclusion of suppliers where they pose particular risks to public procurement.

Exempted Contract

Exempted contracts are not required to be procured in line with the provisions of PA23. The exemptions ensure that contracting authorities have the freedom to let such arrangement as most appropriate, where the rules in the Act would otherwise be unsuitable.

Framework

A contract between one or more CA(s) and one or more suppliers that provides for the future award of call-off contracts by a CA to the supplier or suppliers.

ITT (Invitation to Tender)

A request for suppliers to submit bids for a contract.

Judicial Review

A procedure by which a court can review an administrative action by a public body.

KPI (Key Performance Indicator)

A factor or measure against which a supplier’s performance of a contract can be assessed during the life cycle of the contract.

LAD (Liquidated and Ascertained Damages)

Damages claim against a contractor for project delays.

Light Touch Contracts

Light touch contracts are contracts for legal services and administrative and government services, along with certain social, health, education and catering/ hotel services and are subject to more flexible procurement rules. In many of these cases, the service is delivered directly to individuals or groups of people and therefore warrant special treatment and greater flexibility.

Lot(s)

These are a way to split up a larger single procurement into smaller ‘parts’, which are procured under separate contracts. One supplier can be successful in more than one lot and so be awarded more than one contract.

Mandatory Standstill Period

A requirement to run a standstill period unless an exception applies.

MAT (Most Advantageous Tender)

Or the ‘winning’ tender. Refers to the tender that both satisfies the contracting authority’s requirements and best satisfies the award criteria by reference to the assessment methodology. It is important to note that although the word “Economically” has been m from the acronym, CAs still need to evaluate “price, costs or value for money in all the circumstances” as this has been included within the definition of the “subject matter of the contract”.

MEAT (Most Economically Advantageous Tender)

Refers to how CAs identified the preferred tenderer under the PCR2015

MoD (Ministry of Defence)

The UK government department for defence.

NDA (Non-Disclosure Agreement)

A legally binding contract that establishes a confidential relationship between two parties and can specify confidential information that cannot be shared.

NPPS (National Procurement Policy Statement)

Government policy referenced in the PA2023 that sets procurement priorities and to which, all CAs “must have regard”.

Open Framework

An open framework is a scheme of successive frameworks awarded on substantially the same terms over a maximum duration of 8 years.

PA23 (Procurement Act 2023)

New procurement Act replacing the old regulations.

Payment Compliance Notice

Must be published by CAs every 6 months detailing compliance with the 30-day payment rules. Exceptions apply.

PCR (Public Contract Regulations 2015)

Rules for public contracts, now replaced by the PA2023.

PCSA (Pre-construction Services Agreement)

A contract with a contractor for design before the main building contract starts.

Pipeline Notice

Mandatory notice which must be published by a CA if they anticipate spend over £100m through procurement activities.

Planned Procurement Notice

Discretionary notice which a CA can choose to publish. Provides slightly more specific detail of an upcoming opportunity and can be used to shorten the tender period.

Preliminary Market Engagement

The process which allows CAs to engage with the market ahead of a procurement exercise for the purpose of developing requirements and the procurement approach, identifying potential suppliers and building capacity among suppliers regarding the contract being awarded (amongst others).

Preliminary Market Engagement Notice

Mandatory notice which must be published by a CA if preliminary market engagement is undertaken and there are no reasons for not publishing.

Procurement Regulations 2024

Rules for public contracts, which work alongside PA23.

Procurement Review Unit (PRU)

Replaces the Public Procurement Review Service (PPRS) and will be overseeing compliance to the new legislation and making recommendations if non-compliance occurs.

Procurement Termination Notice

Mandatory notice which must be published by a CA when terminating a procurement process; regardless of if this is for poor performance or the satisfactory completion of a contract. Private utilities are an exception.

Sensitive Commercial Information

Information which constitutes a trade secret, or which would be likely to prejudice the commercial interests of any person if it were published or disclosed.

Set Aside Order

An order, if ordered by the Court, that means the contract in question is void (i.e. the new term for a ‘declaration of ineffectiveness’).

SME(s) (Small and Medium-sized Enterprises)

Any organisation that has fewer than 250 employees and a turnover of less than €50 million or a balance sheet total less than €43 million. They often drive innovation and greater productivity.

Social Value

In relation to public procurement, social value is the wider benefit gained by a local community from the procurement and delivery of public contracts and services.

Standstill Period

The standstill period is the period between the contracting authority announcing its intention to enter into a contract (by publishing the contract award notice) and a minimum period of eight working days (although this can be extended). The contracting authority cannot enter into the contract during the standstill period. The standstill period provides an opportunity for suppliers to raise any concerns about, or formally challenge, the award decision before the contract is entered into. It must be at least eight working days beginning with the day on which the contract award notice is published.

Supply Chain Management

The management of all suppliers and subcontractors involved in the delivery of a contract against which performance levels and monitored and potential remedies applied to.

SQ (Standard Questionnaire)

A form used to check if a supplier is suitable for a contract. (Noting that this may have a different name once the PA23 goes live and that it is the point in the process where the Conditions of Participation are tested).

Tender Notice

Mandatory notice which must be published by a CA when undertaking a competitive tendering procedure under PA23.

Transparency Notice

Mandatory notice which must be published by a CA when making a direct award. Exceptions apply.

TUPE (Transfer of Undertakings (Protection of Employment)

Regulations 2006)

Protects employees' rights when a business or contract is transferred out from or into the CA, or transferred between suppliers delivering public contracts.

Valid / Undisputed Invoice

An invoice is valid if: (i) it is an electronic invoice in the required electronic form; or (ii) it sets out the minimum required information (i.e. customer name, description of goods/services, the sum requested and a unique identification number) and meets any other requirement set out in the contract. 30-day payment terms for CAs apply to these.

VFM (Value for Money)

A core procurement policy requirement, defined as “the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services bought”.

Voluntary Standstill Period

Where the CA is not required to observe a mandatory standstill period. A CA may choose to observe a voluntary standstill period in these circumstances as this can have the effect of removing the remedy of ‘Set Aside’.