of candidates (normally 3 to 8 companies are shortlisted). Then all the shortlisted candidates are invited to bid, followed by an evaluation process and a contract award.
Pre-qualification: preliminary stage in the bidding process where procurement authorities determine if a bidder is qualified (has the required experience and qualifications) to complete the job successfully.
Prime contractor [also called main contractor]: an individual or a company that has a direct contract with a procurement authority and who has the full responsibility for its full execution. A prime contractor may hire several subcontractors to perform parts of the contract on his behalf.
Procurement plan: document that describes or lists what a procurement authority intends to buy, when, from what source and within what budget. Usually, procurement plans are one year plans revised every 3 to 6 months.
Request for Expression of Interest (EOI): an EOI is used to assess interest and capabilities from prospective suppliers in the project. The EOI usually serves to shortlist potential suppliers in a two-stage procurement process, before the invitation to bid. It can also be used to gather information from potential suppliers interested in the project, and to refine the project itself according to what is available in the market.
Subcontractor: an individual or a company hired by a prime contractor to provide a specified product or service as part of an overall contract.
Terms of reference: document that describes de scope of work of a procurement, including the background, work to be performed, the timeline, and deliverables.
Thresholds: the procurement thresholds establish the procurement method that procurement entities need to use (e.g. international competitive bidding, national competitive bidding, request for quotation, etc.) according to the contract value of the procurement. The thresholds also establish who has the rejecting and signing authority for procurement contract awards at the entity level. Procurement thresholds are established by law (in public procurement) or by each company’s internal regulations (in private procurement).
- Knowing about what it takes to become a successful supplier? Consult 4 Steps to Success: Become a Supplier of a Public or Private Organization
- Preparing yourself to access procurement opportunities? Explore Quick Tips to Accessing Procurement Opportunities and assess yourself: how prepared are you?
- Preparing a winning proposal? Learn How to Prepare a Winning Proposal. Do's and Don'ts
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