Definitions of Common Terms
Best Value
The performance for regulating local government and health services, which includes the need to consider whether services are being delivered in the most appropriate way and by whom and the need to secure continuous improvement.
Block Purchasing
Cost and volume contracts incorporating a full service.
Contestability
Making a market efficient by increasing the potential for new entrants to the market. Widening the market to create more suppliers of public services.
Contract
A legally binding agreement.
Commissioning
Strategic activity of assessing need & using available resources to meet needs.
CPV codes
Common Procurement Vocabulary codes, specially developed by the EU for public sector procurement. Buyers use these to classify their contracts by applying a code and description for the items they wish to procure. Suppliers can add CPV codes into their supplier profile to assist in the matching of contract opportunities.
Critical Friend
A person who asks provocative questions and offers critiques of a person’s work as an objective friend. This person takes the time to fully understand the context of the work presented and the outcomes that the person or group is working toward – and is an advocate for the success of that work.
Framework Agreements
An agreement with suppliers, which sets out the terms and conditions under which specific purchases [‘call-offs’] can be made through the term of the agreement.
Full Cost Recovery
Government-approved costing methodology by which all central costs are allocated to individual projects on a fair and consistent basis reflecting the essential nature of central functions to project delivery.
‘Gershon Efficiencies’
Money saving recommendations from the independent review led by Sir Peter Gershon on public sector efficiency, ‘Releasing Resources to the Front Line’ 2004. The efficiency agenda requires each local authority to achieve efficiency gains of 2.5% per year over three years. The objective is to identify gains without compromising public services and to aim to better public service through improving efficiency and productivity.
Open Procedure
Tenders invited from anyone who responds to the Contract publicity.
Preferred Partners
These can be identified through the strategic decision for collaboration with a group or enterprise to ensure the development of a service proposal in the light of local priorities and needs.
Pre-Qualification Questionnaire (PQQ)
Eligibility test or questionnaire regarding organisational capacity to deliver a tendered opportunity.
Procurement
Buying services from a third party under a legally binding contract. ‘Shopping’.
Restricted Procedure
Tenders invited from anyone who responds to the Contract publicity, selected by reference to the criteria.
Service Level Agreement
Agreed level of service provision that will be provided in return for a grant or other funding.
Spot purchasing
Individual placement contract (spot purchase arrangement).
Social clauses
Clauses that require the contracted organisation to demonstrate that they can deliver social benefits and outcomes while carrying out other work described in the contract. The use of social clauses entails multiple objectives being delivered if such clauses are not the primary purpose of the contract.
Tendering
The process of applying to deliver a service under contract through submitting a proposal to suit the opportunity on offer from the purchasing body. Tenders are advertised in the media and more recently posted on websites and e-bulletins. Interested suppliers respond by submitting a written ‘expression of interest’ by the stated date.
Threshold values
The monetary value at which a set of rules and regulations are invoked. The size limits for contracts under European law, which have to be advertised in OJEU (Official Journal of the European Union)
Unique Selling Points (USP)
The specific strengths and added value an organisation has to offer, such as specialist knowledge; engaging with local people; innovative and creative ways of working.
Value For Money (VFM)
Not about securing the lowest initial price. It is defined as ‘the optimum combination of whole life costs and quality to meet the user requirement.’ The optimum combination of whole life costs and benefits to meet the customers requirements.