What's in this guide
Why government procurement has its own language
Government agencies are bound by legislation and procurement rules that require 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 every document.
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 every term you are likely to encounter 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.
The 10 terms you will see on every tender
You do not need to memorise every term in this glossary. These 10 appear on virtually every government tender you will read:
- 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 must include or be excluded
- 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 listing type you will see. If someone says "there is a new ATM," they mean a new tender has been published.
AusTender
The Australian Government's central tender publication platform at tenders.gov.au. Most federal government procurements above the reporting threshold must be published here. Run by the Department of Finance.
Bid
Your formal response to a tender. Also called a submission, proposal, or offer depending on the agency. They all mean the same thing: your written response to the agency's request.
Capability Statement
A short document (usually 2-4 pages) summarising your business, experience, qualifications, and insurance. You attach it to most tender submissions. Think of it as your business resume for government work.
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 typically close automatically at the stated time. If you have not submitted before the closing time, you will not be able to lodge your response.
Commonwealth Procurement Rules (CPR)
The rules that all federal government agencies must follow when buying goods and services. They cover things like value for money, open competition, and ethical behaviour. State governments have their own equivalent policies.
Compliance Check
The first thing that happens to your submission. Before it even reaches the evaluation panel, someone checks that you have included everything the tender asked for: signed declarations, insurance certificates, mandatory forms. 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 or phone call where the agency tells you how your submission scored and where you fell short. Available to any unsuccessful bidder who asks. One of the most valuable learning tools in government tendering.
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, or extends an existing contract. You cannot apply for these unless the agency contacts you directly.
Mandatory Requirement
Something your submission absolutely must include or demonstrate. Common examples: minimum insurance levels, specific licences, signed statutory declarations. Missing a mandatory requirement usually means automatic exclusion.
Multi-Use List (MUL)
Similar to a panel arrangement, but suppliers can join at any time rather than only during an initial application window. Common in QLD and some federal agencies.
Open Tender
A tender where anyone can submit a response. The most common type and the best starting point for businesses new to government work. Published on AusTender, buy.nsw, or QTenders depending on the jurisdiction.
Panel Arrangement
A group of pre-approved suppliers selected through a competitive process. Once on a panel, you receive direct invitations to quote on individual jobs as they come up. Panels typically last 2-3 years.
Pre-qualification
A requirement to be on an approved list before you can access certain tenders. Common in construction (NSW Performance and Management Scheme) and IT (QLD QAssure). You apply once and, if approved, can access restricted opportunities.
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)
The most common type of formal tender. The agency describes exactly 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 governments use to categorise what they are buying. Electrical work falls under 72100000, cleaning under 76100000, IT under 81000000. Knowing your codes helps when searching portals.
Value for Money (VFM)
The 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. Agencies can and do choose more expensive suppliers when they offer better overall value.
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 always better than making an assumption that turns out to be wrong.
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