Procurement Glossary

Tender

Formal procedure where a contracting authority publicly announces a contract and invites companies to submit bids.

Clarification in Procurement Law

Procedure where the contracting authority asks bidders to explain unclear or unusual bid components.

Agile Procurement

Procurement approach that integrates agile methods like Scrum or Kanban into public IT procurement, enabling iterative service delivery.

Cancellation of Tender

Termination of a procurement procedure without contract award by the authority for specific substantive reasons.

Bid Opening

Formal process of opening submitted bids after the submission deadline, partly public for construction procurement.

Bid

Binding declaration by a bidder to provide the tendered service under the specified conditions.

Bid Letter

Formal cover letter accompanying a bid, summarizing the offer, stating the total price, and declaring the binding nature of the bid.

Contract Award Notice

Mandatory publication about the award of a public contract, including information on the successful bidder and contract value.

Rejection Letter

Notification to an unsuccessful bidder about the non-consideration of their offer, including the reasons.

Contract Letter

Formal letter from the contracting authority confirming the award and summarizing the essential contract terms.

Contract Modification

Subsequent modification of an awarded public contract, only permissible under the conditions of § 132 GWB.

Anti-Corruption Law

Body of criminal provisions against bribery and corruption that constitute exclusion grounds in procurement law.

Pharmaceutical Discount Act

Legal regulations on discount agreements between statutory health insurance funds and pharmaceutical companies under § 130a SGB V, governing price competition for pharmaceuticals.

General Terms and Conditions for Construction (AVB Bau)

Standardized contract terms for public construction contracts that supplement VOB/B in governing the rights and obligations of contractual parties.

Contracting Authority

Institution or company that conducts a tender and awards the contract.

Clarification Meeting

Meeting between contracting authority and bidder to clarify ambiguities in a bid, without permitting changes to the bid content.

Contract Volume

Total value of a public contract or all contracts in a given period, decisive for the choice of procedure type.

Reasonableness Assessment

Assessment of bid price reasonableness by the authority, particularly for conspicuously low or high prices.

Waste Management Procurement

Public tender for waste collection, transport, and recycling services with environmental requirements.

17 terms

Joint Bidding Consortium

Alliance of multiple companies for joint bid submission in a public tender.

Bidder Question

Question from a bidder to the contracting authority to clarify ambiguities in the tender documents.

Construction Acceptance

Formal declaration by the client that construction work has been performed in accordance with the contract and is essentially free of defects.

Contract Notice

Official publication of a tender containing all essential information about the procurement procedure.

Terms of Participation

Part of the tender documents that establishes the formal requirements and rules for participation in the procurement procedure.

Consultancy Contract

Contract for the provision of consulting services such as strategy, IT, legal, or management consulting for public authorities.

Surety Bond

Security instrument in procurement where a third party (usually a bank) guarantees the contractor's performance.

Bidder Information

Supplementary information and clarifications from the contracting authority regarding tender documents, made equally available to all bidders.

State Aid Law

EU legal framework controlling state aid to ensure that public contracts do not unlawfully distort competition.

Bidder

Company that submits a bid on a tender and competes for the contract.

Works Contract

Public contract for the execution or design and execution of construction works such as building, civil, or road construction.

Bid Validity Period

Period during which a bidder is bound by their submitted bid and may not withdraw or modify it.

Construction Site Setup

All preparatory measures and facilities on a construction site, tendered as a separate item in the bill of quantities.

Federal Court of Justice (Procurement)

Germany's highest civil court, deciding procurement matters only on divergence referrals from OLG procurement senates.

Requesting Department

Specialist department or organizational unit within a contracting authority that defines the specific procurement need.

BIM in Procurement

Use of Building Information Modeling (BIM) in public construction procurement as a requirement for digital planning and construction processes.

Blockchain in Procurement

Use of blockchain technology in public procurement to increase transparency, tamper-proofing, and traceability.

4 terms

CE Marking

European conformity marking confirming a product meets applicable EU harmonization legislation – frequently required in public tenders.

CPV Code

Unified classification system for public contracts in the EU for categorizing products and services.

Catering Procurement

Public tender for catering services with special requirements for quality, sustainability, and hygiene.

Cloud Procurement

Procurement procedure for cloud services (SaaS, IaaS, PaaS) for public administration with special requirements for data protection, IT security, and digital sovereignty.

9 terms

Dynamic Purchasing System

Electronic procedure for standardized procurements where new bidders can join at any time and individual contracts are awarded competitively.

Direct Award

Award of a public contract directly to a company without formal procedure, permissible only for low-value contracts.

Service Agreement

Contract type where the contractor owes the performance of a specific activity, not a concrete result (§ 611 BGB).

DIN Standards in Procurement

Technical standards from the German Institute for Standardization (DIN) referenced in public tenders as quality and performance benchmarks.

Data Protection in Procurement

GDPR and BDSG requirements for processing personal data in procurement procedures and public contracts.

De Minimis

EU regulation for small-scale aid exempting public subsidies below certain thresholds from the notification requirement.

Service Contract

Public contract for the provision of services such as consulting, cleaning, IT services, or planning.

Print Service Procurement

Public tender for printing and managed print services for public institutions.

Digital Signature

Electronic method for authentication and integrity assurance of documents in electronic procurement.

12 terms

E-Procurement

Electronic handling of public procurement procedures via digital platforms – mandatory in Germany since 2020.

Electronic Auction

Iterative electronic procedure for price determination where bidders can adjust their offers in real time.

Self-Declaration

Written statement by a bidder regarding the existence or non-existence of certain facts, serving as preliminary proof of eligibility.

EU Thresholds

Contract values above which European procurement law with stricter rules and EU-wide publication requirements applies.

E-Procurement Regulation

Regulation on the electronic conduct of procurement procedures with requirements for platforms, formats, and encryption.

EVB-IT Contract

Standardized contract types for public IT procurement in Germany, issued by the Federal Ministry of the Interior, covering service types such as purchase, service, cloud, and system delivery.

EMAS Certification

European Eco-Management and Audit Scheme recognized in public procurement as proof of environmental management competence.

Selection Criteria

Requirements for bidders' capability and capacity that must be met for contract performance.

Reliance on Third-Party Capabilities

Option for bidders to rely on the capacities of other companies to demonstrate eligibility without forming a joint bid.

Energy Supply Contract

Public tender for electricity and gas supply with green energy and pricing model requirements.

Purchasing Consortium

Association of multiple contracting authorities for joint procurement to achieve volume advantages and efficiency gains.

Electronic Invoice

Invoice in a structured electronic format (e.g., XRechnung) that public authorities have been required to accept since 2020.

6 terms

Trade Lot Award

Division of a contract into trade lots by type or specialty, e.g., separate lots for electrical, plumbing, and structural work.

Direct Negotiation

Procurement procedure below EU thresholds where the authority negotiates directly with one or more companies without a formal procedure.

Standard Form 124

Standard self-declaration form for bidder eligibility in public construction contracts, covering turnover, references, and reliability.

Professional Expertise

Suitability criterion demonstrating a bidder's professional knowledge and experience for the tendered service.

Liberal Profession Services

Services by architects, engineers, and other liberal professionals, awarded under special procurement rules.

Facility Management Procurement

Public tender for comprehensive building management including technical, infrastructural, and commercial FM.

9 terms

Combined Award

Award of a contract as a whole without lot division – only permissible for economic or technical reasons.

Expert Assessment Procedure

Quality-based selection procedure where an expert panel evaluates submitted concepts or designs, commonly used for architecture and planning services.

GWB (Act against Restraints of Competition)

Central German law governing the fundamentals of public procurement law in its fourth part.

Principle of Equal Treatment

Procurement principle requiring all bidders to be treated equally and to participate under the same conditions.

Warranty

Legal obligation of the contractor to be liable for defects in the delivered performance within specified periods.

Trade Work

Specialized construction work of a specific trade or craft within a building project.

Quality Marks and Labels

Certifications and quality marks (Blue Angel, EU Ecolabel, Fairtrade, etc.) required in tenders as proof of environmental and social standards.

General Contractor

Company that takes on an entire contract and subcontracts partial services to subcontractors.

GAEB Data Exchange

Standardized data format by the Joint Committee for Electronics in Construction (GAEB) for electronic exchange of bills of quantities, bids, and invoices in construction tenders.

3 terms

HOAI (Fee Schedule for Architects and Engineers)

Regulation governing fees for architect and engineering services in planning contracts, serving as an orientation framework.

Budget Law and Procurement

Public budget law framework providing principles of economy and efficiency for public procurement.

HOAI Service Phases

The nine service phases of the Fee Scale for Architects and Engineers (HOAI) structuring the planning process and determining fee calculation.

5 terms

Innovation Partnership

Procurement procedure for developing innovative products or services not yet available on the market, followed by their acquisition.

Expression of Interest Procedure

Preliminary procedure where companies express their interest in a planned tender before the actual procurement procedure begins.

IT Security Concept

Document required in IT tenders describing the technical and organizational measures to ensure information security.

ISO Certification in Procurement

International management system certifications (ISO 9001, ISO 14001, ISO 27001, etc.) required in public tenders as suitability or award criteria.

iTWO Cost Estimation

Software-based construction cost estimation using RIB iTWO, the industry standard for bid calculation, quantity surveying, and billing in public construction tenders in Germany.

6 terms

Concession

Contract granting a company the right to provide works or services while bearing the economic operating risk.

Concession Award

Award of a contract where the economic risk of service provision lies with the concessionaire.

Antitrust Law

Area of law protecting competition, prohibiting bid-rigging and collusion among bidders in public procurement.

Right of Termination

Right of the contracting authority or contractor to terminate a procurement contract prematurely under certain conditions.

Statutory Health Insurance Authorization

Authorization for a pharmaceutical to be reimbursed by statutory health insurance – prerequisite for participation in GKV tenders.

AI in Procurement

Use of Artificial Intelligence to support and automate processes in public procurement.

6 terms

Lot Award

Procurement principle requiring public contracts to be divided into lots to promote SME participation.

Bill of Quantities

Detailed description of all services to be provided with quantities and line items.

Lot

Division of an overall contract into multiple partial contracts to enable smaller companies to participate.

Supply Contract

Public contract for the purchase, leasing, or rental of goods, including ancillary services like installation.

Economic and Technical Capacity

Suitability criterion proving a bidder's economic, financial, and technical capacity to execute the contract.

Laboratory Equipment Procurement

Public tender for laboratory equipment, analytical instruments, and consumables with specification, calibration, and maintenance requirements.

5 terms

Market Consultation

Preparatory measure before a tender where contracting authorities survey the market to better define service requirements.

Mini-Competition

Individual call-off from an existing framework agreement where framework partners are invited to submit offers in a shortened competition.

Defect Notice

Formal notification of a defect to the contractor to preserve warranty rights.

SME Promotion

Procurement principle for the special consideration of small and medium-sized enterprises in public contracts.

Furniture Procurement

Public tender for office and school furniture with ergonomic and sustainability requirements.

10 terms

Restricted Procedure

The restricted procedure is a procurement method where the contracting authority invites a limited number of companies to submit tenders after a public call for participation.

Document Checklist

List of all required documents and evidence that a bidder must submit in a procurement procedure.

Review Procedure

Legal remedy procedure before the procurement chamber allowing bidders to challenge procurement law violations.

Review Application

Formal application by a bidder to the procurement review body to examine a procurement procedure for alleged violations of procurement law.

Non-Discrimination

Procurement principle prohibiting unjustified disadvantaging of bidders based on origin, size, or other characteristics.

Variant Bid

Alternative bid by a tenderer that deviates from the specifications and proposes a different solution.

Subsequent Request for Documents

Request by the authority for a bidder to submit missing or incomplete documents, declarations, or evidence within a deadline.

Subcontracted Service

Partial service of a public contract that the main contractor delegates to a subcontractor.

Variation Order Management

Systematic process for managing service changes and additional cost claims during contract execution.

Review Body

Authority or court that reviews procurement decisions above EU thresholds upon request by a bidder.

4 terms

Open Procedure

Procurement procedure where an unlimited number of companies are publicly invited to submit bids.

Above-Threshold Procurement

Procurement procedure for contracts above EU thresholds with strict formal requirements under GWB, VgV, or VOB/A EU.

Open House Procedure

Procurement procedure in the healthcare sector where all companies can conclude a contract under identical conditions without quantity limits or competitive selection.

Higher Regional Court Procurement Senate

Specialized chamber at the Higher Regional Court deciding appeals against procurement chamber decisions.

8 terms

Design Contest

Procedure for selecting design proposals through a jury, particularly in architecture, urban planning, and engineering.

Price Sheet

Structured pricing document in procurement where the bidder enters unit prices and total prices for the tendered service positions.

Planning Contract

Public contract for architectural or engineering services such as design, approval planning, or construction supervision.

Prequalification

Preliminary qualification where companies demonstrate their capability once through a central register.

Price Mirror

Tabular comparison of all bid prices in a procurement procedure for transparent price comparison and identification of outliers.

Lump-Sum Contract

Construction contract with a fixed total price where the quantity risk lies with the contractor – alternative to unit price contracts.

Postal Service Procurement

Public tender for mail and parcel services following postal market liberalization.

PEPPOL

Pan-European Public Procurement Online – EU-wide network for standardized electronic data exchange in procurement.

5 terms

Framework Agreement

Agreement between a contracting authority and companies establishing terms for future individual contracts within a defined period.

Reference List

List of comparable successfully completed projects submitted by a bidder as evidence of technical and professional capability.

Obligation to Complain

Bidder's obligation to promptly raise recognized procurement violations with the authority to preserve the right to legal review.

Objection (Procurement)

Formal objection by a bidder against a procurement violation directed at the contracting authority, prerequisite for review proceedings.

Discount Agreement (Pharma)

Agreement between statutory health insurers and pharmaceutical companies on drug price discounts under § 130a para. 8 SGB V, awarded through competitive procedures.

15 terms

Bid Opening

Formal act of opening bids at a predetermined time, during which received bids are opened and documented.

Bid Opening

Formal opening event where submitted bids in a procurement procedure are opened and documented.

Service Level Agreement (SLA)

Contractual component in IT and service tenders defining measurable quality parameters such as availability, response times, and performance metrics.

Bid Opening Protocol

Official record of the opening of submitted bids, listing bidders and bid prices.

Procurement Thresholds

Contract values that determine whether national or European procurement law applies.

Utilities Regulation

Procurement regulation for contracting entities in water, energy, transport, and telecommunications with special rules and higher thresholds.

Threshold Calculation

Method for determining the estimated contract value to establish which EU procurement rules apply.

Arbitration Tribunal

Private tribunal for out-of-court dispute resolution, with limited applicability in public procurement law.

Immediate Complaint

Legal remedy against procurement chamber decisions, filed with the OLG procurement senate within 2 weeks.

Social Criteria in Procurement

Social requirements and evaluation criteria in procurement promoting fair working conditions, inclusion, and social standards.

Self-Cleaning

Measures taken by a company after procurement violations to regain eligibility for public procurement despite exclusion grounds.

Estimation of Contract Value

Obligation of the contracting authority to carefully estimate the expected total value of the contract before starting the procedure.

Time and Material Contract

Compensation model where services are billed by actual effort (hourly rates × hours) – common for consulting and IT services.

Security Service Procurement

Public tender for guarding and security services with reliability and qualification requirements.

Subcontractor

Company commissioned by the main contractor to perform partial services of a public contract.

5 terms

Request to Participate

Application by a company to participate in a restricted procurement procedure.

Collective Agreement Compliance Act

State law requiring public contract holders to provide their employees at least the collectively agreed working conditions.

Transparency Requirement

Procurement principle obliging contracting authorities to ensure traceability and disclosure of all procedural decisions.

TED (Tenders Electronic Daily)

EU online database for public tenders above the threshold values.

Textile Cleaning Procurement

Public tender for textile cleaning and rental services for hospitals, care facilities, and authorities.

3 terms

Below-Threshold Procurement

Procurement procedure for contracts below EU thresholds, governed by UVgO, VOB/A Section 1, and state law.

UVgO (Sub-Threshold Procurement Ordinance)

Procedural regulation for awarding public supply and service contracts below EU thresholds.

Environmental Criteria

Ecological requirements and evaluation criteria in procurement procedures to promote sustainable public procurement.

27 terms

Negotiated Procedure

The negotiated procedure is a procurement method where the contracting authority negotiates terms with selected companies, typically used for complex services.

Prior Information Notice

Advance notice by a contracting authority about planned procurement procedures that informs the market early and can shorten deadlines.

Negotiated Procedure without Competition

Exceptional procurement procedure where the authority negotiates directly with selected companies without prior public notice.

Procedure Documentation

Comprehensive written documentation of all essential decisions and steps in a procurement procedure.

Tender Documents

Tender documents comprise all documentation provided by the contracting authority to bidders, including specifications, contract terms, and application forms.

Declaration of Commitment

Binding declaration by a subcontractor or capability provider to actually make required capacities available to the bidder if awarded.

Procurement Report

Mandatory documentation of the entire procurement procedure by the contracting authority, recording all key decisions.

Insurance Certificate

Document proving existing insurance coverage, required as proof of suitability in procurement procedures.

Confidentiality Agreement

Declaration to maintain confidentiality of sensitive information exchanged during a procurement procedure.

Public Procurement Law

Body of legal rules governing how public authorities must award contracts to companies.

VgV (Procurement Ordinance)

Ordinance governing procurement procedures for supplies and services above EU thresholds.

Procurement Chamber

Authority that decides on procurement law violations in review procedures and protects bidder rights.

VOB (German Construction Contract Procedures)

Regulatory framework for the award and execution of construction works, consisting of three parts: VOB/A, VOB/B, and VOB/C.

Procurement Statistics Regulation

Regulation for collecting statistical data on public contract awards to improve transparency and evaluation of the procurement system.

Procurement Debarment

Exclusion of a company from public procurement procedures due to serious misconduct such as corruption, fraud, or cartel violations.

Contractual Penalty

Contractually agreed monetary payment that the contractor must make for contract violations, particularly deadline overruns.

Procurement Law Reform

Fundamental revision of German procurement law, most recently in 2016 implementing EU Directives 2014/24/EU and 2014/25/EU.

Proportionality

Procurement principle requiring that demands on bidders and bids must be proportionate to the contract subject.

Federal Procurement Handbook

Federal administrative regulation with standardized forms, guidelines, and procedural instructions for conducting public procurement.

Procurement Platform

A procurement platform is an electronic platform through which public contracting authorities publish tenders and bidders submit their offers.

Procurement Marketplace

A procurement marketplace is an online platform that centralizes public tenders and makes them accessible to businesses.

Contract Duration

Period for which a public contract is concluded — affects competition and procurement cost-effectiveness.

Procurement Readiness

State in which all prerequisites for starting a procurement procedure are met – particularly complete service specifications and secured funding.

Insurance Contract Procurement

Public tender for insurance services (liability, property, vehicle fleet, D&O).

Procurement Office

Organizational unit of a contracting authority responsible for conducting procurement procedures.

Procurement Coordinator

Person who coordinates procurement procedures within an organization, serving as the interface between specialist departments and the procurement office.

Procurement Officer

Person authorized and responsible for the operational execution of individual procurement procedures.

12 terms

Competitive Dialogue

Procurement procedure for particularly complex contracts where the authority develops solutions together with bidders.

Evaluation Method

Systematic procedure for evaluating and ranking submitted bids based on established criteria.

Competition

Fundamental principle of procurement law ensuring that public contracts are awarded through fair competition between multiple providers.

Maintenance Contract

Contract for regular care, inspection, and maintenance of systems, equipment, or software in public procurement.

Evaluation Report

Internal document of the contracting authority that transparently records the evaluation of all bids and the award decision.

Value Thresholds

Contract value thresholds that determine which procurement procedure applies and whether simplified rules can be used (e.g., direct award).

Competition Law

Area of law ensuring fair competition – encompasses antitrust law (GWB) and unfair competition law (UWG).

Works Agreement

Contract type where the contractor owes the creation of a specific work or result (§ 631 BGB).

Evaluation Criteria

Pre-defined criteria used to evaluate and compare submitted bids to determine the most economically advantageous tender.

Most Economically Advantageous Tender

Bid with the best price-quality ratio that receives the contract award — not necessarily the cheapest.

Value for Money Principle

Procurement law principle requiring the contract to be awarded to the most economically advantageous tender with the best price-quality ratio.

Active Substance Tender

Tender by a statutory health insurer for the supply of pharmaceuticals containing a specific active substance, structured by dosage form, strength, and pack size.

1 terms

XVergabe

Open data standard for electronic procurement in Germany, ensuring interoperability between procurement platforms.

7 terms

Contract Award

Formal act by which the contracting authority accepts a bidder's offer, thereby concluding the contract.

Award Letter

Written notification from the contracting authority to the successful bidder confirming acceptance of their offer and the award of the contract.

Subsidies Law

Legal area governing the allocation and use of public subsidies, which can trigger procurement obligations for subsidy recipients.

Contract Award

Decision by the contracting authority to award the contract to a specific bidder.

Award Criteria

Criteria for evaluating and selecting the most economically advantageous tender.

Reliability

Suitability criterion assessing a bidder's legal compliance and trustworthiness as a contracting partner of public authorities.

Central Purchasing Body

Organization that conducts procurements jointly for multiple contracting authorities, achieving economies of scale.

2 terms

Opening Date

Designated time at which submitted bids are opened and their essential contents documented.

Public Transport Procurement

Procurement of local public transport services under EU Regulation 1370/2007.