Public procurement uses a dense vocabulary of notices, bid documents, evaluation methods, securities and contract-management terms. This glossary explains commonly encountered expressions in Indian government procurement in plain language. The wording in a specific tender, applicable procurement rules and the issuing authority's clarifications always take precedence over a general definition.
Use the glossary as a reading aid, not as a substitute for the tender
Terms such as bid security, performance security, L1, QCBS, EOI or BOQ can carry tender-specific conditions. Always read the definition, eligibility clause, instructions to bidders, special conditions, schedules and corrigenda in the official document before acting.
Core tender and notice terms
Term
Plain-language meaning
Tender / bid invitation
A formal procurement invitation through which an authority seeks offers for goods, services or works under stated conditions.
NIT (Notice Inviting Tender)
The notice announcing a tender and usually identifying the scope, tender reference, key dates and access to the detailed documents.
RFP (Request for Proposal)
A solicitation that asks bidders to propose an approach or solution against defined requirements and evaluation criteria; common in consulting, technology and other solution-led procurements.
RFQ (Request for Quotation)
A request focused primarily on obtaining quotations for a defined requirement, subject to the issuing authority's procurement method and conditions.
EOI (Expression of Interest)
A process used to identify or shortlist capable interested parties before a later procurement stage, or to assess market interest. An EOI is not automatically a contract award process.
Tender ID / bid number
The official reference used by the issuing authority or portal to identify a procurement. Preserve it when searching for amendments, results or support.
Corrigendum / amendment
An official change, correction or addition to the tender. A corrigendum can change dates, specifications, eligibility, quantities or contract conditions.
Pre-bid meeting
A scheduled forum in which prospective bidders can seek clarification. Only clarifications or amendments formally issued by the authority should be treated as binding.
Bid structure and submission terms
Term
Plain-language meaning
Technical bid
The part of a submission covering eligibility, capability, technical compliance, methodology and other non-price information required by the tender.
Financial / price bid
The price component submitted in the prescribed format. Many e-procurements require it to remain separate from the technical cover.
Single-cover / two-cover / multi-cover bid
Portal or tender structures that separate documents into one or more electronic covers. The tender specifies what belongs in each cover.
BOQ (Bill of Quantities)
A structured schedule of items, quantities and rates used especially in works and item-rate procurements. Bidders should not alter protected templates except where the tender permits.
Bid validity
The period for which the bidder agrees that its offer will remain valid. Extensions, if sought, should be handled only in the manner stated by the authority.
DSC (Digital Signature Certificate)
A digital certificate used for electronic signing/authentication on procurement systems where required.
Bid acknowledgement
The portal-generated or authority-issued evidence that a bid has been successfully submitted. It should be retained with the bid record.
Evaluation and selection terms
Term
Plain-language meaning
Responsive bid
A bid that satisfies the tender's material requirements sufficiently to remain eligible for evaluation, as determined by the procuring authority.
L1
The lowest evaluated eligible price under a price-based method after applying the tender's evaluation rules. It does not mean that every lowest quoted figure must automatically win.
QCBS (Quality and Cost Based Selection)
A method, commonly used for consultancy, in which technical quality and financial scores are combined using weights stated in the RFP.
QBS (Quality Based Selection)
A consultancy selection approach in which quality is the principal basis for selection, where the applicable rules and RFP permit it.
LCS (Least Cost Selection)
A selection method in which the lowest evaluated cost among technically qualified proposals is decisive, where the procurement framework permits it.
Reverse auction
An electronic price-competition process in which eligible sellers may reduce prices during an auction window under defined rules.
Technical qualification threshold
The minimum technical score or pass criteria required before a proposal can proceed to the next evaluation stage.
Security, price and contract terms
Term
Plain-language meaning
EMD / bid security
Security associated with bid participation where required. Applicability, form, amount, exemptions and validity are tender-specific and should never be assumed.
Performance security / performance bank guarantee
Security furnished after award where required to support performance of contractual obligations. The required form, value and duration come from the contract/tender.
Tender fee / document fee
A fee, where applicable, associated with obtaining or participating in a tender. Exemptions and payment channels are controlled by the tender.
Price preference / purchase preference
A policy mechanism that may give defined preference to eligible categories under specified conditions. It is not the same as an unconditional right to an award.
Rate contract
An arrangement establishing prices and terms for supplies/services over a period, with actual quantities or orders governed by the contract conditions.
LOA / Letter of Award or Acceptance
A formal communication that the authority has accepted or intends to award the bid, subject to the precise wording and any remaining conditions.
SLA (Service Level Agreement)
Measurable service-performance requirements such as availability, response time or resolution time, often linked to service credits, deductions or other remedies.
Liquidated damages (LD)
Pre-stated contractual damages or deductions for specified delay or breach, subject to the contract and applicable law.
Force majeure
A contractual mechanism addressing specified extraordinary events beyond a party's control. Scope, notice duties and relief depend on the contract wording.
Participation and supplier terms
Term
Plain-language meaning
OEM (Original Equipment Manufacturer)
The manufacturer of a product or technology. Tenders may require OEM authorisation, support commitments or manufacturer-specific evidence.
Authorised dealer / partner
A reseller or service partner authorised by an OEM or principal for specified products, services, geography or period.
Consortium / joint venture
Two or more entities bidding together where the tender permits it. Eligibility aggregation, lead-member responsibility and liability depend on the tender.
Subcontractor
A party engaged by the prime contractor to perform part of the contract where subcontracting is permitted. The prime contractor normally remains responsible to the buyer under the main contract.
MSE
A Micro or Small Enterprise. Some central public-procurement policies provide defined benefits to eligible MSEs, subject to current policy and tender conditions.
Udyam Registration
The Government of India's official MSME registration framework. Tender-level recognition of status and required evidence must still be checked.
GeM bid
A procurement opportunity conducted through Government e-Marketplace under the rules and functionality applicable to that bid.
Contract administration terms
Milestone: a defined project or delivery stage used to measure progress, acceptance or payment.
Acceptance test: a test or verification process used to determine whether delivered goods, systems, works or services meet contractual requirements.
Variation / change order: an authorised change to scope, quantity, specification, price or time, handled under the contract's change mechanism.
Defect-liability / warranty period: a period during which specified defects or failures must be corrected under the contract.
Retention: an amount withheld from payments where the contract provides for it, generally released under stated conditions.
Final acceptance / completion certificate: formal confirmation of completion or acceptance under the contract's process; terminology varies by authority and contract type.
How to read an unfamiliar procurement term
Search the tender's own definitions and instructions first.
Check the relevant schedule, form or annexure to see how the term is operationalised.
Read all corrigenda and official clarifications issued under the same tender reference.
If the term affects eligibility, price, security, liability or deadline, obtain clarification from the issuing authority rather than relying on an informal interpretation.
Use the applicable Department of Expenditure manual, portal guidance or policy only as supporting context; the tender remains the transaction-specific source.
