DEFINITIONS: GLOSSARY OF TERMS

A handy guide to terminology and acronyms commonly used in the innovation procurement process.

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DEFINITIONS: GLOSSARY OF TERMS

Definitions

  • Accelerators
    Accelerators are programs designed to support the rapid growth and development of early-stage businesses or innovations by providing mentorship, resources, funding, and networking opportunities. They aim to help companies scale quickly and successfully in a competitive market.
  • Above Threshold
    Where a public contract has an estimated value which exceeds the relevant threshold, contracting authorities are required to comply with the requirements of procurement regulations in order to procure such contracts.
  • Below Threshold
    Procurements that are below threshold are generally referred to as low-value procurements. Whilst there are fewer obligations, public authorities are nevertheless expected to follow a fair and transparent process. Each authority has its own policy for below threshold spending. However, there are still rules around publishing contracts following award.   
  • Bidder or Tenderer 
    These refer to the supplier submitting a bid or tender. Quite often both terms are used but to be specific:
    • A Bidder is often used with a less complex process, or when a supplier participates in the initial stages of the procurement process, such as the SSQ stage (see below).
    • A Tenderer is a supplier who participates in the tender stage of the procurement process.
  • Competitive Flexible Procedure (CFP)
    A procurement approach designed to streamline the traditionally multi-staged procurement processes by offering greater flexibility and fewer stringent rules. This method allows procurers to tailor the procurement process to fit specific needs, utilising a more commercially oriented system. It aims to simplify and adapt procurement practices, fostering innovation and efficiency in acquiring goods and services.
  • IUK’s Contracts for Innovation
    Formerly known as the Small Business Research Initiative (SBRI), are a government-backed program that supports businesses in developing innovative solutions to address public sector challenges. These contracts provide funding to help companies test, develop, and commercialise new technologies or services.
  • Contract Value 
    The value of the final contract for the entire term.
  • Innovation Challenge 
    An innovation challenge is a structured initiative that solicits ideas to address a specific problem or theme within an organisation. Innovation challenges are also known as idea challenges, idea contests, idea campaigns, innovation competitions, hackathons, startup weekends, and innovation boot camps. 
  • Innovation Procurement
    The process of acquiring innovative solutions or fostering innovation through procurement practices. It involves purchasing goods, services, or works that are new or significantly improved, aiming to meet unmet needs or solve complex challenges. Innovation procurement encourages creativity, supports the development of new technologies, and drives economic growth by enabling public and private sectors to collaborate on innovative projects.
  • Invitation To Tender (ITT)
    Also known as ‘tender opportunity’. It's an invitation for interested parties to submit their bids, outlining how they can fulfil the required specifications, at a specified price or rate. 
  • MAT
    MAT stands for "Most Advantageous Tender." It is a concept that has replaced the previous "Most Economically Advantageous Tender" (MEAT). MAT allows contracting authorities to consider the entire package on offer, rather than just the price.
  • MEAT
    Most Economically Advantageous Tender (MEAT) is a method used to evaluate and award contracts based on more than just price. It is a procurement process that considers quality, technical, and sustainability aspects of a tender.
  • National Priority (Outcomes)
    A national priority is something of great importance that must be addressed before other matters. These outcomes represent key goals that define what a society aims to achieve.
  • Open Process or Open Procedure
    A procurement that is open to the market for bidders to submit a response to the tender. The open procedure is best for procuring common goods and services. It is a one-stage process which means suppliers can receive all the procurement documentation at once. 
  • Output Specification
    • This is a specification that predominantly adopts performance-based requirements to define the project scope.
    • Outcome-based specifications are used to describe the purpose or function that a product, service, or system from the supplier(s) must fulfil to meet the desired outcomes.
  • Pilot/Trial
    The pilot or trial is an initial small-scale implementation that is used to prove the viability of a project idea. 
  • Pre-Commercial Procurement (PCP) or Pre-Commercial
    • PCP is a stage of research, testing and trialling before bringing innovation to market. 
    • The solution may not yet have been tested in a real environment, or may not currently be available on a large-scale commercial basis.
    • This stage reduces the risk of failure at scale.
  • Preliminary Market Engagement
    Preliminary Market Engagement (PME), often referred to as ‘Pre-Market’ or ‘Early Market Engagement’ is a process that helps contracting authorities prepare for procurement. It involves gathering information from suppliers and market participants before publishing a tender notice. See Gate 0 for further details.
  • Procurement Exemption
    Procurement exemptions allow contracting authorities to continue with the procurement, but without the process being bound by statutory procedures that govern public procurement. There are limited circumstances where such exemptions might apply (for instance, in cases of justification on the grounds of extreme urgency or for national security reasons). 
  • Procurement Options Appraisal
    This is the assessment of which route to market is most appropriate.
  • Procurement Remedies 
    Procurement remedies are legal actions that may be taken to compensate suppliers if a contracting authority breaches its duties. The remedies system is in place to encourage contracting authorities to comply with the Procurement Act 2023.
  • Proof of Concept 
    A Proof of Concept (POC) is a practical demonstration of a product, process or service. This involves testing whether it is likely to be viable and has the potential to be scaled in a real-life environment. 
  • Restricted Procedure
    The restricted procedure is a two-stage procurement process used to select the best bidder for a contract when there are many potential suppliers. The first stage uses the SSQ tool (see below) to eliminate suppliers and may restrict the number taken through to the second stage. 
  • Request For Quotation (RFQ)
    This refers to obtaining price for a specified product or service. Generally, comparison is on price alone. RFQ is for below threshold spend and common in small public organisations, such as when Local Authorities must request/obtain at least three quotes for spend over £5000. 
  • Route to Market 
    These routes represent the different options to choose from to procure goods and services. The official processes for above threshold procurements are defined by UK policy.
  • Scale/Commercial scaling 
    This refers to the process of procuring large volumes, for instance, throughout an authority. The solution may be trialled on one site at pre-commercial stage. 
  • SME
    Small to Medium Enterprise (SME). An SME is 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. A breakdown of the different organisation sizes as defined in the UK is as follows:
    • Micro: Fewer than 10 employees and an annual turnover under €2 million; 
    • Small: Fewer than 50 employees and an annual turnover under €10 million; 
    • Medium-sized: Fewer than 250 employees and an annual turnover under €50 million. 
  • Social Value
    An area that can be assessed during the procurement process beyond price and good service. It refers to the wider social, economic, and environmental benefits delivered to the community beyond simply fulfilling the contract.
  • Specification
    In a procurement context, a specification can be defined as a ‘statement of needs or requirements’. It provides a detailed description of the goods or services a supplier is expected to supply during the lifetime of the contract. 
  • Standard Selection Questionnaire (SSQ) — sometimes referred to as SQ and previously PQQ
    The tender process may include a selection stage, also known as a standard selection questionnaire (SSQ). In this stage, bidders provide information to demonstrate that they meet the minimum requirements to be considered for the contract. The SSQ process helps to streamline and standardise the initial selection of suppliers.
  • Subsidy & Subsidy Control
    Subsidy procurement involves managing public funds to award subsidies to businesses and organisations, often to help them reduce costs or increase incomes. Subsidy control (formerly known as State Aid) is a set of rules governing how public authorities in the UK can award subsidies. The goal is to promote economic growth while preventing unfair advantages for certain businesses.
  • Technology Readiness Level (TRL)
    A type of measurement system used to assess the maturity level of a particular technology. For further information please see link: Eligibility of technology readiness levels (TRL) - UKRI
  • Tender
    A tender is a formal proposal or bid that a potential supplier submits to an organisation in response to published opportunity or invitation to tender (ITT).
  • Thresholds
    A procurement threshold is the ceiling amount of a contract value for a procurement when regulations apply. Details of these thresholds, which came into effect on 1st Jan 2024  can be found here: Procurement Policy Note 11/23 – New Thresholds (HTML) - GOV.UK
  • Variation
    A variation in procurement refers to a change made to an existing contract after it has been awarded. Variations can affect the scope of work, terms, or obligations.

Procurement Act 2023 Notices

  • Pipeline Notice
    A list of planned procurements for the financial year and the first half of the following financial year.
  • Preliminary Market Engagement Notice
    An invitation for suppliers to participate in preliminary market engagement.
  • Planned Procurement Notice
    An optional announcement indicating that a contracting authority intends to publish a tender notice. Previously known as a Prior Information Notice (PIN).
  • Tender Notice
    Previously known as a Contract Notice, this advertises a public contract opportunity and is mandatory for initiating a competitive procurement process and inviting tender submissions.
  • Transparency Notice
    A notice required before awarding a contract without competitive tendering.
  • Contract Details Notice
    Replaces the previously known Contract Award Notice. It is a mandatory notice used to inform the market about the details of an awarded contract once signed, including information about the supplier and contract terms.
  • Contract Change Notice 
    A notice that must be issued before modifications are made to a public contract.
  • Contract Publication Notice
    Required for awarded contracts exceeding £5 million. Any public contract above this threshold must be published in full.
  • Contract Performance Information Notice
    For contracts over £5 million, authorities must publish key performance indicators (KPIs), along with annual updates on performance against those KPIs and any breaches or failures by the supplier.
  • Contract Termination Notice
    A notice required when a contract is terminated or expires.

Refer to Gate 2: The Procurement Act 2023 for further guidance. 

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