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Plain-language definitions of every EU Procurement Fundamentals & Principles term that shows up in government tender work.
Aggregated procurement is the practice of combining the purchasing requirements of multiple contracting authorities, or multiple separate purchases by a single authority, into a single procurement exercise to achieve economies of scale, reduce administrative cost, and leverage greater buying power in the market.
Read definitionA centralised purchasing body is a contracting authority that provides centralised purchasing activities, acquiring supplies or services for other contracting authorities or awarding public contracts or framework agreements for use by those authorities, enabling them to benefit from a single competitive process.
Read definitionA contracting authority is any state body, regional or local authority, body governed by public law, or association of such bodies that is required to follow public procurement rules when purchasing goods, works, or services above the applicable financial thresholds.
Read definitionCross-border joint procurement is a procurement arrangement in which contracting authorities from two or more EU member states (or other participating countries) collaborate to conduct a single procurement procedure, requiring careful agreement on applicable law and governance to navigate different national legal frameworks.
Read definitionAn economic operator is any natural person, legal entity, or group of such persons that offers goods, works, or services on the market and may participate in a public procurement procedure, including sole traders, companies, consortia, and non-profit organisations.
Read definitionFree movement of goods and services is a foundational Treaty principle of the EU internal market that prevents member states from imposing unjustified barriers to cross-border trade, directly shaping public procurement law by requiring that contracts be open to competition from suppliers across Europe.
Read definitionThe Teckal exemption allows a contracting authority to award a contract directly to a controlled entity without running a competitive tender, provided the authority exercises over the entity a control similar to that which it exercises over its own departments and the entity carries out the essential part of its activities for that authority.
Read definitionJoint procurement is an arrangement under which two or more contracting authorities collaborate to conduct a single procurement procedure together, sharing the administrative burden and combining their purchasing power, either by nominating one authority to act as the lead or by establishing a joint procurement body.
Read definitionThe Light-Touch Regime is a simplified procurement framework under Directive 2014/24/EU that applies to a defined list of social, health, educational, and other specific services, featuring a higher financial threshold and more flexible procedural requirements reflecting the reduced cross-border interest typical of these services.
Read definitionA mixed contract is a public contract that covers elements of more than one category of procurement, such as both works and services, or both supplies and services, requiring specific rules to determine which procurement regime and threshold applies to the whole contract.
Read definitionThe principle of equal treatment requires contracting authorities to apply the same rules, timelines, and evaluation criteria to all tenderers competing for a public contract, ensuring that no supplier receives an advantage or suffers a disadvantage based on factors unrelated to the merits of their offer.
Read definitionThe principle of mutual recognition requires contracting authorities to accept certificates, diplomas, qualifications, and technical standards from other EU member states as equivalent to national equivalents, preventing buyers from requiring foreign suppliers to duplicate compliance they have already demonstrated in their home country.
Read definitionThe principle of non-discrimination in public procurement prohibits contracting authorities from treating suppliers differently based on their nationality, place of establishment, or other grounds unrelated to their capacity to perform the contract, ensuring that the European public market is genuinely open to competition.
Read definitionThe principle of proportionality requires that procurement requirements, including selection criteria, technical specifications, and contract conditions, are appropriate and necessary to achieve the legitimate objectives of the contract, without imposing burdens on suppliers that exceed what the nature and value of the contract genuinely justify.
Read definitionThe principle of transparency requires contracting authorities to make their procurement intentions, selection and award criteria, and contract award decisions publicly available, enabling all interested suppliers to compete on equal terms and allowing unsuccessful bidders to understand and challenge outcomes.
Read definitionA public contract is a written contract concluded for pecuniary interest between one or more economic operators and a contracting authority, having as its object the execution of works, the supply of products, or the provision of services, and which triggers the procedural obligations of EU public procurement law.
Read definitionPublic interest in procurement is the principle that contracting authorities must use their purchasing power to serve the needs of citizens and society rather than private or partisan interests, ensuring that procurement decisions are made for legitimate public purposes and are subject to accountability.
Read definitionPublic procurement is the process by which government bodies and other public sector organisations purchase goods, works, and services from external suppliers, governed by rules designed to ensure fair competition, transparency, and the best use of public funds across Europe.
Read definitionA public service contract is a public contract whose object is the provision of services and that does not qualify as a public works or supply contract, covering an enormous range of professional, technical, social, and other services procured by contracting authorities across Europe.
Read definitionA public supply contract is a public contract whose object is the purchase, lease, rental, or hire-purchase, with or without option to buy, of products, and where the value of the supply element predominates over any incidental installation or siting works included in the contract.
Read definitionA public works contract is a public contract whose object is the execution, or both the design and execution, of construction works or a civil engineering work, or the realisation of a work corresponding to the requirements specified by the contracting authority, and is subject to the highest EU procurement financial threshold.
Read definitionPublic-public cooperation is an arrangement between two or more contracting authorities to jointly perform public service tasks, which is exempt from EU procurement competition requirements provided the cooperation is driven by genuine public service objectives rather than by a commercial motive to avoid the market.
Read definitionA reserved contract is a public contract that a contracting authority restricts to participation by sheltered workshops, social enterprises, or similar organisations whose primary aim is the social and professional integration of disabled or disadvantaged persons, as explicitly permitted under EU procurement directives.
Read definitionSound financial management is the obligation, derived from EU financial regulation, to spend public and EU funds in accordance with the principles of economy, efficiency, and effectiveness, and is a condition that contracting authorities must observe when procuring under EU-funded programmes.
Read definitionValue for money in public procurement means achieving the best combination of quality, cost, and risk over the lifetime of a contract, not simply the lowest initial price, ensuring that public spending delivers genuine and lasting benefit to citizens and the organisations that serve them.
Read definitionSee how Bidovate turns these government tender terms into pipeline. Explore the platform or book a 15-minute demo.
