Tender terms, in plain English

Addendum

A document that adds to or changes a tender after it has been published. Some buyers use it as another word for a corrigendum.

Read it the day it appears. It can carry new specifications, a new form or an extra condition. Check whether it says which version prevails if it conflicts with the original.

Bid end date

The last date and time to submit a bid on the portal. After it, the portal does not accept bids.

GeM prints it as Bid End Date/Time. It is often different from the bid opening date. A corrigendum can move it, so check the latest notice before you rely on a date.

How Tenderlytix helps. Tenderlytix shows the bid end date with the line it was read from, and emails reminders before it in the workspace. See how

Bid opening date

The date and time the buyer opens the submitted bids. It is usually later than the bid end date.

In a two-part bid, the technical bids are opened first and the financial bids later, only for bidders who qualify technically. Bidders may be able to watch the opening on the portal.

Bid securing declaration

A signed statement by the bidder, given instead of paying an EMD, accepting that it can be suspended from bidding if it breaks the bid's conditions.

Some buyers accept it in place of an EMD. Whether it is allowed, and for whom, is stated in the bid document and follows the buyer's procurement rules.

Source: General Financial Rules 2017 and later orders of the Ministry of Finance, Department of Expenditure

Bid validity

The number of days your bid stays binding after the bid end date. You cannot withdraw or change your price during that period without risking your EMD.

GeM shows it as Bid Offer Validity. The buyer may ask bidders to extend it if the evaluation runs long. Make sure your price and your validated documents hold for the whole period.

BoQBill of Quantities

A table that lists every item or piece of work in a tender with its quantity, where the bidder fills in a rate against each line.

Common in works tenders. The bid is priced from the BoQ, so use the file the buyer provides and do not change its layout. A corrigendum often replaces the BoQ; a bid priced on the old one can be rejected.

Class-I local supplier (Make in India)Class-I local supplier under the Public Procurement (Preference to Make in India) Order

A supplier whose goods or services meet the highest local content level defined by the Public Procurement (Preference to Make in India) Order. Such suppliers get a purchase preference in many government tenders.

The Order defines Class-I and Class-II local suppliers and non-local suppliers by the share of local content. The bid document states the minimum local content, the preference and the self-certificate or certificate you must give, so read it rather than assume the thresholds.

Source: Public Procurement (Preference to Make in India) Order 2017 (PPP-MII), Department for Promotion of Industry and Internal Trade

Corrigendum

A notice from the buyer that changes something in a published tender, such as a date, a specification, a condition or a quantity. The plural is corrigenda.

Check the tender's page on the portal for corrigenda right before you submit, not only when you first read the tender. A corrigendum can move the bid end date, change who is eligible or replace the price format.

How Tenderlytix helps. In the workspace you add the corrigendum to the same tender and re-run it for free. Tenderlytix does not watch portals for you. See how

CPPPCentral Public Procurement Portal

The Government of India's portal for publishing tenders, at eprocure.gov.in. Central ministries, departments and many public sector bodies publish their tenders on it.

Each tender has a tender details page with the dates, fees and documents, and a place where corrigenda are listed. Bidders register on the portal and usually sign with a digital signature certificate.

Debarment declaration

A statement signed by the bidder that it has not been debarred, blacklisted or suspended by any government body, and that no such action is pending.

Usually a form in the bid document, signed by an authorised signatory. A false declaration can lead to rejection and to debarment itself, so check with the whole company before signing.

Source: General Financial Rules 2017 (debarment from bidding)

How Tenderlytix helps. Annexures and forms that the tender itself includes can be drafted as Word files with your company details, for you to check and sign. See how

DPIIT-recognised startupStartup recognised by the Department for Promotion of Industry and Internal Trade

A company that holds a recognition certificate under the Startup India initiative. Procurement rules give such startups some relaxations when they bid to government buyers.

The relaxations, such as for prior experience, prior turnover or EMD, apply under conditions and differ by buyer. The bid document says whether a startup relaxation is offered and which certificate to attach.

Source: Startup India (DPIIT) and the Ministry of Finance procurement rules, including General Financial Rules 2017

DSCDigital Signature Certificate

An electronic ID, usually on a USB token, that lets a person sign documents and bids online with legal effect under the Information Technology Act.

Many tender portals need a DSC registered to the bidder's login, and it has an expiry date. Do not wait until the last day to renew it. GeM also supports some other signing methods; the portal says which.

Source: Information Technology Act, 2000 (certifying authorities licensed by the Controller of Certifying Authorities)

EMDEarnest Money Deposit

Money a bidder lodges with the bid to show it is serious. The buyer can keep it if the bidder withdraws during the bid validity or fails to sign the contract after winning.

The amount, the accepted forms (for example online payment, a demand draft or a bank guarantee) and the refund rules are in the bid document. On GeM it appears as EMD Amount. Some bidders are exempt; see the entry on EMD exemption.

Source: General Financial Rules 2017 (bid security)

How Tenderlytix helps. Tenderlytix shows the EMD amount and any exemption conditions with the line from the tender, and says Not confirmed when it cannot find one. See how

EMD exemption for MSEs

A rule under which eligible micro and small enterprises, and some other bidders, do not have to deposit an EMD when they bid to certain government buyers.

Central procurement rules provide the exemption for registered MSEs, and for DPIIT-recognised startups under conditions. State buyers follow their own rules. The bid document says whether the exemption applies and what proof, usually a Udyam certificate, to attach. Missing the proof can cost you the exemption.

Source: Public Procurement Policy for Micro and Small Enterprises Order 2012 and General Financial Rules 2017

How Tenderlytix helps. Tenderlytix reads the EMD exemption rule from a tender, with the line it came from, when the tender states one. See how

ePBG / performance securityElectronic Performance Bank Guarantee

A guarantee, usually from a bank, that the winning bidder gives after the award to secure performance of the contract. The buyer can claim it if the supplier fails to deliver as agreed.

The percentage and how long it must stay valid are in the bid document. On GeM it appears as ePBG Percentage and its duration. It is separate from the EMD, and you usually have to arrange it within a short time after the award.

Source: General Financial Rules 2017 (performance security)

Financial bidPrice bid

The part of a bid that states the prices, filled in on the buyer's price format or BoQ. In a two-part bid it is opened only for bidders who pass the technical evaluation.

Use the buyer's format exactly. Check whether prices should include taxes, freight and other charges, and whether the bid is compared per item or on the total.

GeMGovernment e-Marketplace

The government's online marketplace for buying goods and services, run under the Ministry of Commerce and Industry. Buyers publish bids on it and registered sellers respond.

A GeM bid page shows the dates, the evaluation method, the eligibility conditions, the EMD and ePBG, and the documents the seller must upload, with the buyer's own additional terms attached.

How Tenderlytix helps. Upload a GeM bid PDF to the free check to see its dates, EMD, eligibility and documents in one place. See how

Integrity pact

An agreement between the buyer and each bidder that neither side will offer or take a bribe or use unfair practices in the tender. Independent monitors may oversee the process.

Some large buyers and public sector bodies require it, following guidance from the Central Vigilance Commission. If the bid document includes the pact, it is signed and submitted with the bid.

Source: Central Vigilance Commission guidelines

L1Lowest bidder

The bidder with the lowest price among those who qualified. L2 is the next lowest, and so on.

In a price-only evaluation the L1 bidder is normally offered the contract. Where there are several items, the bid document says whether L1 is found item by item or on the total. Some buyers allow other qualified bidders to match the L1 price, as the bid document states.

LCSLeast Cost Selection

A way of choosing a consultant: proposals must first reach a minimum technical score, and the lowest price among those that do wins.

It is used for simpler consultancy assignments where quality matters less than price once a minimum standard is met. The minimum technical score is stated in the RFP.

Source: Manual for Procurement of Consultancy and Other Services, Department of Expenditure

Net worth

A measure of a company's financial strength from its balance sheet, broadly what it owns that belongs to its owners after accumulated losses.

A tender may ask for a positive net worth or a minimum amount, usually as at the last audited year, with a chartered accountant's certificate. The bid document may define how to calculate it; follow that definition.

NITNotice Inviting Tender

The notice that announces a tender: what is being bought, the key dates, how to bid and where to find the full document.

The NIT is a summary. The conditions that decide your eligibility, price format and obligations are in the full tender document and its annexures, so do not bid from the NIT alone.

OEM authorisationManufacturer's Authorisation Form (MAF)

A letter from the original manufacturer saying a bidder, such as a dealer or reseller, is authorised to supply and support its products in the tender.

The bid document says whether it is required, in what format, how recent it must be and whether it must cover the specific tender. Getting one from a manufacturer takes time, so ask early.

How Tenderlytix helps. The documents-to-submit list in the workspace shows whether the tender asks for an authorisation letter. See how

Past experience criterionSimilar work experience

A condition that the bidder has completed similar orders or projects of a stated value in recent years, proved with work orders and completion or satisfactory-performance certificates.

The most disputed words are usually similar and completed. Read how the tender defines them, which years count, and the proof. MSEs and startups may be relieved of this condition, as the bid document states.

How Tenderlytix helps. Tenderlytix lists the experience rule among the eligibility checks, with the line from the tender. See how

Pre-bid meeting

A meeting, in person or online, held before the bid end date where bidders can ask the buyer to clarify the tender.

Buyers usually publish the answers afterwards, often as a corrigendum, and they can change the requirements. Send questions in writing by the stated date. Attending is often optional, but missing the answers is not an excuse.

How Tenderlytix helps. In the workspace, Tenderlytix drafts pre-bid questions from the gaps in a tender, and you can add the reply and re-run it. See how

QCBSQuality and Cost Based Selection

A way of evaluating proposals that combines a technical score and a price score using stated weights, for example 70 for technical and 30 for price. The highest combined score wins.

Used for consultancy and some service tenders. The weights, the minimum technical score and how the price score is worked out are in the bid document. The lowest price does not win by default.

Source: Manual for Procurement of Consultancy and Other Services, Department of Expenditure

How Tenderlytix helps. Tenderlytix reads the evaluation method from a tender and counts it among the checks behind the participation score. See how

Reverse auction

An online step after technical evaluation where qualified bidders lower their prices in turn over a set time, and the lowest price wins.

GeM bids can be marked as reverse auction enabled. You may only be able to improve your own last price, and the auction closes at a fixed time. Know your floor price before you start.

RFPRequest for Proposal

A tender document, mostly for services and consultancy, that asks bidders for a technical proposal and a price. Proposals are usually scored on both.

Expect sections on scope, the team, the approach and how proposals are evaluated, often by QCBS. An RFP can sit next to a shorter bid or notice, so make sure you have read all the files.

RFQRequest for Quotation

A simple invitation to quote a price for standard goods or services, used when the requirement is clear and the value is lower.

It has fewer conditions than an RFP or a full tender, but the same discipline applies: the specification, delivery terms and the validity of the quote are binding once you submit.

Solvency certificate

A certificate from a bank stating the bidder's financial standing up to a stated amount, sometimes asked for in works tenders.

The bid document says which banks are acceptable, the minimum amount, how recent it must be and the format. Banks can take days to issue it, so ask before you need it.

Technical bid

The part of a bid that shows the bidder is eligible and meets the technical requirements: documents, certificates, compliance statements and, where asked, a technical proposal.

It is evaluated before the price is opened. A missing document or an unsigned form is a common reason to be rejected here, whatever the price would have been.

How Tenderlytix helps. The documents-to-submit list shows what the technical bid needs, marked against the proofs you hold. See how

Tender feeTender document fee or processing fee

A fee some buyers charge for the tender document or for processing the bid on the portal. It is normally not refunded.

Many buyers charge nothing. Where there is one, the bid document gives the amount, how to pay and the last date, and some buyers exempt MSEs. Do not confuse it with the EMD, which is a deposit.

Turnover criterion

A minimum annual turnover a bidder must show to be eligible, usually averaged over a number of recent financial years.

Check which years count, whether it is an average or every year, and what proof is accepted, usually a chartered accountant's certificate or audited statements. MSEs and startups may get a relaxation, which the bid document must say.

How Tenderlytix helps. Tenderlytix lists the turnover rule among the eligibility checks and shows the line it came from. See how

Udyam registration / MSEMicro and Small Enterprise registered on the Udyam portal

Udyam registration is the government's registration for micro, small and medium enterprises. A registered micro or small enterprise (MSE) can get benefits in government buying.

The Public Procurement Policy for MSEs sets goals for buying from MSEs and gives them relaxations, such as exemption from tender fee or EMD in the cases the policy covers. Attach the Udyam certificate where the bid document asks, and check it matches the category and activity of the item being bought.

Source: Ministry of Micro, Small and Medium Enterprises; Public Procurement Policy for Micro and Small Enterprises Order 2012

How Tenderlytix helps. Tick your Udyam certificate once in your company profile and each tender's document list shows it as held. See how