What's in this guide
Why government procurement has its own language
Government agencies are bound by legislation and procurement rules that lead them to use specific, formal language. Terms like "Approach to Market" and "Value for Money" have precise legal meanings, so agencies use them consistently across procurement documents.
The problem is that this language was written for procurement officers, not for the electrician reading a tender for the first time on a Saturday morning. A tender that says "respondents must demonstrate capacity to deliver the scope of the SOA in accordance with the CPR" is just asking you to show that you can do the work and follow the rules.
This glossary translates common terms into plain English. Bookmark it and refer back to it whenever you are reading a tender document and hit a term that does not make sense.
10 terms you will see often
You do not need to memorise every term in this glossary. These 10 appear often in government tender documents and portal listings:
- ATM (Approach to Market) the published tender listing
- RFT (Request for Tender) the formal document you respond to
- Scope of Work what the agency needs done
- Evaluation Criteria how they will score your submission
- Value for Money the guiding principle (not cheapest, best overall)
- Closing Date the absolute deadline for submissions
- Capability Statement your business resume document
- Mandatory Requirement things you may need to include to stay compliant
- Schedule of Rates your pricing broken down by item or hour
- Contract Notice the announcement of who won
Full A-Z glossary
Approach to Market (ATM)
The formal process when a government agency goes looking for suppliers. On AusTender, this is the main open-opportunity listing type you will see. If someone says "there is a new ATM," they usually mean a new approach to market has been published.
AusTender
The Australian Government's central procurement information system at tenders.gov.au. It publishes open approaches to market plus contract and standing-offer notices for many Commonwealth agencies. Run by the Department of Finance.
Bid
Your formal response to a tender. Also called a submission, proposal, response, or offer depending on the buyer and process.
Capability Statement
A short document (often 2-4 pages) summarising your business, experience, qualifications, and insurance. Some tenders ask for one directly; others ask for the same information in forms.
Clarification
A question from the agency about your submission. They might need you to explain something in more detail or confirm a figure. This is normal and not a bad sign.
Closing Date
The deadline for submissions. Government portals often close automatically at the stated time, and late responses are usually not accepted unless the tender process expressly allows it.
Commonwealth Procurement Rules (CPR)
The rules Commonwealth officials must follow when procuring goods and services. They cover principles such as value for money, competition, ethics, and accountability. State and territory governments have their own procurement policies.
Compliance Check
An early check that your submission includes the mandatory items the tender asked for: signed declarations, insurance certificates, forms, licences, or other evidence. If you miss a mandatory item, your submission can be excluded.
Contract Award / Contract Notice (CN)
The public announcement that a tender has been awarded to a supplier. On AusTender, these include the winning supplier's name and the contract value. Useful for seeing who wins work in your industry.
Debrief
A meeting, call, or written feedback process where the buyer may explain how your submission performed. Commonwealth procurements provide debriefs on request; state, territory, and council processes vary, so ask through the process provided.
Delegate
The government official who has the authority to approve a procurement decision. For small contracts, this might be a branch manager. For large contracts, it could be a deputy secretary or senior executive.
Evaluation Criteria
The specific factors the agency will use to score your submission. Listed in the tender document, often with weightings or ranked by importance. Common criteria include relevant experience, price, technical capability, and risk management. Your response should address each criterion directly.
Expression of Interest (EOI)
A preliminary step where the agency asks potential suppliers to put their hand up before releasing the full tender. You submit a brief overview of your capabilities. If shortlisted, you get invited to submit a full proposal.
Evaluation Panel
The group of people who read and score all submissions. Typically includes a mix of project managers, procurement officers, and subject matter experts. Panel size and scoring processes vary by agency and contract value.
Head Contract
The main contract between the agency and the supplier. Contains all the terms, conditions, payment schedules, and obligations. Read it carefully before signing, especially the liability clauses.
Invitation to Tender
When an agency directly invites specific suppliers to submit a tender. This happens with limited tenders or when you are on a panel arrangement.
Key Personnel
The specific people from your business who will work on the contract. Many tenders ask you to name them and provide brief CVs. If you say your lead electrician has 20 years of experience, they may require that person to actually work on the job.
Limited Tender
A tender where only invited suppliers can bid. Used when the work is specialised, urgent, permitted by the relevant rules, or extends an existing arrangement. If you have not been invited, you usually cannot submit a response outside the process the agency sets.
Mandatory Requirement
Something your submission must include or demonstrate. Common examples include minimum insurance levels, specific licences, and signed declarations. Missing a mandatory requirement can mean exclusion.
Multi-Use List (MUL)
Similar to a panel arrangement, but the list may allow suppliers to apply while the list is active rather than only during one application window. The exact admission rules depend on the list.
Open Tender
A tender where eligible suppliers can submit a response through the published process. Often a good starting point for businesses new to government work. Published on the relevant official portal for the buyer.
Panel Arrangement
A group of pre-approved suppliers selected through a process. Once on a panel, you may receive invitations to quote on individual jobs under the panel rules. Panel terms and work volume vary.
Pre-qualification
A requirement to be on an approved list, scheme, or register before you can respond to certain opportunities. The tender notice should identify the required scheme and evidence.
Probity
Fairness and integrity in the procurement process. Government agencies must treat all bidders equally, avoid conflicts of interest, and keep the process transparent. Some larger tenders have a dedicated probity adviser overseeing the process.
Procurement
The process of buying goods or services. When a government agency "procures" electrical maintenance, they are buying that service from a contractor. Procurement covers everything from publishing the tender to signing the contract.
Request for Proposal (RFP)
A type of tender where the agency describes the problem they need solved and asks suppliers to propose a solution. Common for IT, consulting, and professional services. Less prescriptive than an RFT.
Request for Quote (RFQ)
A simpler version of a tender, usually for lower-value purchases. The agency describes what they need and asks for a price. Less formal evaluation process than an RFT.
Request for Tender (RFT)
A formal tender request. The buyer describes what they want (scope, specifications, timeframe) and asks suppliers to submit a response showing how they would deliver it and at what price.
Schedule of Rates
A pricing format where you list your rates for individual items or tasks (e.g. $85/hour for a licensed electrician, $45/hour for an apprentice, $120 per switchboard inspection). Common in maintenance and trades contracts.
Scope of Work
The section of the tender document that describes what the agency actually needs done. Read this carefully. Everything in your response should relate back to the scope.
Standing Offer Arrangement (SOA)
A formal agreement where a supplier offers to provide goods or services at agreed prices for a set period. Similar to a panel, but often for standard goods or routine services.
Submission
Your complete response to a tender, including all documents, pricing, capability statements, and declarations. Also called a bid, offer, or proposal.
Tender
A formal invitation from a government agency for suppliers to submit a proposal to deliver specific goods, services, or works. The term covers the entire process from publication to contract award.
UNSPSC Code
United Nations Standard Products and Services Code. A classification system used to categorise goods and services. Knowing likely codes for your work can help when searching portals, but titles and documents matter too.
Value for Money (VFM)
A core principle of government procurement. It does not mean cheapest. It means the best overall outcome considering quality, reliability, risk, fitness for purpose, and price together. Buyers may choose a higher-priced supplier when it offers better overall value against the criteria.
Variation
A change to the contract after it has been signed. If the agency needs additional work beyond the original scope, they issue a variation. Important to understand how variations are priced and approved in the head contract.
Abbreviations reference table
A quick reference for the abbreviations you will see most often in tender documents and portal listings.
| Abbreviation | Stands for |
|---|---|
| ATM | Approach to Market |
| CN | Contract Notice (award announcement) |
| CPR | Commonwealth Procurement Rules |
| EOI | Expression of Interest |
| MUL | Multi-Use List |
| RFP | Request for Proposal |
| RFQ | Request for Quote |
| RFT | Request for Tender |
| SOA | Standing Offer Arrangement |
| SON | Standing Offer Notice |
| UNSPSC | United Nations Standard Products and Services Code |
| VFM | Value for Money |
What to do when you hit a term you do not understand
Even with this glossary, you will occasionally come across terms specific to a particular agency or contract type. Here is what to do:
- Check the tender document itself. Many tenders include a "Definitions" or "Glossary" section near the front. The agency defines terms specific to that contract here.
- Submit a clarification question. Most tenders have a "Questions and Answers" process where you can ask the agency to clarify something. These are usually anonymous, and the answers are shared with all bidders.
- Search the agency's website. Many agencies publish procurement guides and glossaries specific to their organisation.
- Do not guess and hope for the best. If a term affects how you price or what you include in your submission, you need to understand it correctly. Asking a clarification question is usually safer than making an assumption that turns out to be wrong.
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