Procurement glossary

A

Abnormally low tender

A tender whose price seems so low that you wonder how anyone could do the work for it; there is no fixed threshold. The buyer must first ask for an explanation before it may reject the bid. Read more

ARVODI (general purchasing conditions)

General purchasing conditions are standard terms a public buyer applies to all its contracts of a certain kind, such as the ARVODI-2025 for services or the VNG model for municipalities. They cover liability, payment, confidentiality, intellectual property and termination, among other things. Read more

Award criterion (gunningscriterium)

The yardstick a buyer uses to assess and compare bids, such as price and quality. An evaluation panel usually scores your answer to a quality question on a scale. Read more

Award decision (gunningsbeslissing)

In a European public tender, the buyer must give reasons for its award decision, so you can see where the winner scored better than you. Read more

B

BAFO (best and final offer)

In a private tender the client may negotiate and often asks for a sharper price in a second round: the best and final offer. If you know this in advance, keep room in your pricing. Read more

Below the threshold

Below the EU threshold, a public buyer decides how to buy: it asks one company for a quote, invites a few or opens the contract to the whole market. Read more

Bid management (tender management)

Organising a bid: who does what, when it must be ready and with which material. Read more

Bid/no-bid (go/no-go)

The decision whether to take part in a tender. Always look at volume, penalty clauses, start-up time and contract term, because that is where the hard limits are. Read more

BPKV (best price-quality ratio)

A way of awarding in which price and quality are weighed together, for example quality 70% and price 30%. What really decides is the scoring underneath that split. Read more

C

Clarification document (nota van inlichtingen)

The document with all questions from all bidders and the buyer’s answers. It becomes part of the tender documents. With a good question you can get requirements changed and sometimes dropped. Read more

Consortium (combinatie)

You bid together with one or more other companies. In a consortium, each partner fills in its own ESPD. Read more

Cost per hour

What an hour of work really costs you: the gross hourly wage plus premiums, holidays, absence, non-billable hours and the costs per contract. Read more

CPV code

A code from the Common Procurement Vocabulary, a single European classification that public buyers use to describe the subject of their contracts. Read more

D

Differentiation

What makes your offer different from and better than those of other bidders, on a point the buyer considers important. A claim without proof does not count, and a competitor should not be able to make the same claim. Read more

DMU (decision-making unit)

The group of people within a company who decide on a purchase together: management or the budget holder, the users, procurement and often assistants too. Read more

DPS (dynamic purchasing system)

A European public tender that stays open. A DPS is a fully electronic process for commonly used purchases. Read more

E

EMVI (most economically advantageous tender)

The most economically advantageous tender. The Dutch Public Procurement Act 2012 knows three award criteria: the best price-quality ratio, the lowest cost based on cost-effectiveness and the lowest price. The best price-quality ratio is the standard way to apply EMVI. Read more

ESPD (European Single Procurement Document)

A standard form prescribed by EU procurement law. It is a self-declaration: you do not have to prove anything yet, and what you fill in must be true. Read more

Exclusion grounds

Situations in which a buyer may or must exclude you from a tender, however good your bid, such as convictions and unpaid taxes. Read more

Executive summary (managementsamenvatting)

The short summary at the front of your proposal, written for whoever decides. Read more

F

Format requirements (vormeisen)

Requirements for the form of a bid, such as page limit, font size, images and forms. Read more

Framework agreement

Prices and terms fixed for contracts that come later, without knowing how much will come. Since 2021, a buyer must state an estimated and a maximum quantity or value; when the maximum is reached, the framework agreement ends. Read more

G

GVA (certificate of conduct for tenders)

The proof from Justis that no exclusion grounds apply. The buyer normally only asks for it from the company that wins the contract. Read more

H

Hit rate (win rate)

The share of your bids that you win. A win-loss analysis helps you understand why the buyer chose you or someone else. Read more

I

Incumbent supplier

The company already doing the work. In a private tender it has a head start, but that head start is smaller than it feels. Read more

Instructions to bidders (aanbestedingsleidraad)

The document that sets out the procedure of a tender. The specifications set out the content and the draft contract sets out what applies if you win. Read more

K

Knock-out

A requirement you must meet to take part. If you fail it, the rest of your bid no longer counts. Read more

KPI (key performance indicator)

The measure you use for the level of your service. An SLA is the agreement on that level. Read more

L

Lot (perceel)

A separate part of a contract that is awarded on its own. A public buyer divides a contract into lots, unless it explains in the tender documents why that is not appropriate. Read more

M

Market consultation

A non-binding conversation between a public buyer and the market before a tender starts. It is the stage for thinking along on how the contract is set up, although it is not part of the procedure itself. You can still raise unclear points later in the clarification round. Read more

Method statement (plan van aanpak)

The part of a bid, under that name or as an implementation plan or work plan, where an evaluation panel judges whether it trusts you with its contract. Read more

P

Price indexation

Adjusting your price in line with an index named in the contract, such as the consumer price index (CPI) of Statistics Netherlands (CBS). Indexation follows an index, not your costs, and the gap between the two decides whether your margin holds. Read more

Private tender

A request for proposals from a company rather than a public body. The company decides who to invite, what to ask for and how to choose. Read more

Proportionality Guide

A mandatory guideline under the Dutch Public Procurement Act. The current version is the third revision, in force since January 2022. Read more

Q

Quote or proposal (offerte)

An offer to a prospective client: what you will deliver, at what price and on what terms. In Dutch law a quote is an offer, and under article 6:217(1) of the Dutch Civil Code (BW) a contract is formed by an offer and its acceptance. Read more

R

Reference

An earlier contract that shows you have done the work before, as a requirement or as proof in your text. A buyer may only ask for comparable contracts, from the last three years for services and supplies and five years for works. Read more

Reliance on third parties

You lean on another company for a selection requirement. The form of cooperation decides who is liable, who has to prove what and what you can still change later. Read more

RFP (request for proposal)

A request in which a company asks suppliers for a full proposal: approach, planning, team and price. Read more

S

Selection criteria (geschiktheidseisen)

Requirements that decide whether you may take part in a tender; if you fail one, the rest of your bid no longer counts. A buyer may only set requirements that are related to the contract and proportionate to it. Read more

SLA (service level agreement)

An agreement on the level of your service. A KPI is the measure you use for that level. Read more

Social return

Spending part of the contract value on people at a distance from the labour market. A percentage of the contract value is common, with a value per type of contribution, such as a job, a training place or an internship. Read more

Standstill period (opschortende termijn)

The period of at least 20 calendar days after the award decision, before the contract may be signed. Read more

Subcontracting

You bid and another company carries out part of the work. Read more

Substantial modification

A contract awarded through a European tender may only be modified during its term on the grounds in articles 2.163b to 2.163g of the Dutch Public Procurement Act 2012. A substantial modification in principle means the buyer has to tender again. Read more

Supplier selection

The step in the purchasing process where a buyer chooses, from the available suppliers, the one that best fits the need, based on criteria set in advance. Read more

T

Tender procedure

The procedure decides whether you bid straight away, whether there is negotiation and how much time you get. Above the EU threshold there are five: the open and the restricted procedure, the competitive procedure with negotiation, the competitive dialogue and the innovation partnership. There is also the exceptional negotiated procedure without prior publication, only in cases named in the law. Read more

TenderNed

The Dutch government’s tender platform: the website where municipalities, provinces, ministries and other public bodies in the Netherlands publish their European and national tenders. Read more

Threshold (drempelbedrag)

The amount that decides whether a public buyer must tender a contract at European level. From 1 January 2026 to 31 December 2027 they are € 140,000 for supplies and services of central government, € 216,000 for those of sub-central authorities and € 5,404,000 for works, excluding VAT. Read more

Read on

• Writing a tender
• European public tenders: the complete guide
• Proposals and private tenders: the complete guide
• EMVI and BPKV