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Lot System & Structure

Plain-language definitions of every Lot System & Structure term that shows up in government tender work.


Lot System & Structure

Explanation for Non-Division into Lots

An explanation for non-division into lots is the mandatory justification a contracting authority must publish when it decides not to divide an above-threshold contract into separate lots, as required by Article 46 of Directive 2014/24/EU, setting out the specific reasons why a single lot structure is appropriate for that procurement.

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Lot System & Structure

Lot

A lot is a self-contained subdivision of a public contract, defined by the contracting authority so that suppliers can bid for a portion of the overall requirement rather than the entire scope, enabling smaller firms to participate and increasing competition in European public procurement.

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Lot System & Structure

Lot Allocation Strategy

A lot allocation strategy is the pre-published methodology a contracting authority uses to determine how lots are assigned among tenderers when evaluation scores, caps on awards per tenderer, or combined lot group bids require a structured decision-making process beyond simple individual lot ranking.

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Lot System & Structure

Lot Bundling

Lot bundling is the practice of combining multiple related lots or requirements into a single, larger contract package, which can reduce transaction costs and improve coordination but may limit access for smaller suppliers by raising the capability threshold for participation.

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Lot System & Structure

Lot Description

A lot description is the specification text published by a contracting authority for each individual lot within a divided procurement, setting out the scope, deliverables, technical requirements, and any lot-specific conditions that bidders must address in their tender response.

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Lot System & Structure

Lot Division

Lot division is the process by which a contracting authority segments a public contract into separate, independently awardable parts, balancing access for smaller suppliers against the authority's need for coordinated delivery and administrative efficiency under EU Directive 2014/24/EU.

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Lot System & Structure

Lot Group

A lot group is a named cluster of individual lots within a single procurement procedure, allowing contracting authorities to offer combined-package bids alongside individual lot bids and to evaluate whether awarding a group of lots to one supplier delivers better value than awarding each lot separately.

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Lot System & Structure

Lot Value

Lot value is the contracting authority's estimated financial worth of a single lot within a divided procurement, published to help suppliers assess opportunity size and resource investment, and used to determine which lots fall below the small-lot exemption threshold in EU public procurement rules.

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Lot System & Structure

Maximum Number of Lots Awarded to One Tenderer

The maximum number of lots awarded to one tenderer is a post-evaluation rule that caps how many lots a single supplier may win within one procurement procedure, ensuring that contract awards are distributed across multiple suppliers even when one bidder scores highest across several lots.

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Lot System & Structure

Maximum Number of Lots per Tenderer

The maximum number of lots per tenderer is a procurement rule that limits how many lots within a single procedure a supplier may submit a tender for, used by contracting authorities to encourage specialist bids and prevent one dominant supplier from monopolising all available lots.

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Lot System & Structure

Multi-Lot Tender

A multi-lot tender is a public procurement procedure in which the contracting authority divides the contract into two or more separately awardable lots, each with its own specification and value, allowing suppliers to compete for individual parts of the overall requirement rather than the entire scope.

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Lot System & Structure

Single Lot Tender

A single lot tender is a public procurement procedure in which the contracting authority does not divide the contract into separate parts, issuing one undivided requirement to the market and awarding one contract to one successful supplier, with a mandatory explanation required under EU rules when this approach is chosen.

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