Glossary
Indian government tender terms, defined
The words that decide whether you can bid, what it costs to try, and how the winner is chosen. Each term has its own page with the rule behind it and the mistake people make with it.
- Bid security declarationBid securing declaration, BSD
- A signed statement a bidder submits instead of paying EMD, accepting suspension from bidding with that buyer if it withdraws or modifies its bid during validity, or wins and then fails to sign the contract or furnish performance security. Read more about Bid security declaration
- Bid validityOffer validity
- The period during which a submitted bid stays open for the buyer to accept. The tender states it; where it does not, the central government procurement manuals treat it as 90 days, and a bid with a shorter validity is rejected. Read more about Bid validity
- BOQBill of quantities
- The bill of quantities: the itemised list of what the buyer wants supplied or built, with quantities and units, against which a bidder quotes rates. Read more about BOQ
- Class-I local supplier
- Under the Public Procurement (Preference to Make in India) Order, a supplier whose goods, services or works carry local content of 50% or more. It receives a 20% margin of purchase preference. Read more about Class-I local supplier
- Corrigendum
- An official amendment the tendering organisation publishes after the tender notice, changing a date, a quantity, a specification or a document. It becomes part of the tender. Read more about Corrigendum
- Digital signature certificateDSC
- An electronic certificate issued by a licensed certifying authority that lets a bidder sign documents online. Bidding on CPPP requires a Class 3 signing certificate. Read more about Digital signature certificate
- EMDEarnest money deposit, or bid security
- The refundable bid security a bidder lodges to take part in a tender, ordinarily 2% to 5% of the estimated value under GFR Rule 170. The General Financial Rules call it bid security. Read more about EMD
- ePBGElectronic performance bank guarantee
- An electronic performance bank guarantee, issued through the banks' SFMS network. On GeM it is the performance security the winning seller furnishes after award, at a percentage the buyer sets in the bid. Read more about ePBG
- GeM direct purchaseDirect purchase on GeM
- A purchase made straight from the GeM catalogue without inviting bids. Under GFR Rule 149, a buyer may do this up to Rs 50,000, and may take the lowest priced seller among at least three manufacturers up to Rs 10 lakh. Read more about GeM direct purchase
- Global tender enquiryGTE
- A tender publicised abroad as well as in India so that foreign firms can bid, with payment in foreign currency allowed. Under GFR Rule 161(iv), no central buyer may issue one for a tender up to Rs 200 crore without prior approval or a listed exemption. Read more about Global tender enquiry
- H1 eliminationHighest priced bid elimination
- A rule in a GeM bid to RA under which the highest quoting technically qualified bidder is not allowed into the reverse auction, with listed exceptions such as when only two or three bidders qualify. The bid document states it before you bid. Read more about H1 elimination
- Integrity PactPre-bid Integrity Pact, IP
- A pre-bid agreement in which buyer and bidders commit to no bribery and no collusion, watched by Independent External Monitors. Where a tender includes it, signing is a condition of bidding. Read more about Integrity Pact
- L1Lowest bidder
- The lowest priced responsive bid, ranked under the evaluation method the tender specifies. Only bidders who pass technical evaluation are ranked. Read more about L1
- Limited tenderLimited tender enquiry, LTE
- A tender sent directly to a buyer's list of registered suppliers, normally for goods worth up to Rs 50 lakh. Bids from firms that were not invited are treated as unsolicited and are normally ignored. Read more about Limited tender
- Liquidated damagesLD for late delivery
- A pre-agreed sum a supplier or contractor pays for late delivery or completion, deducted from payments. The central manuals default to 0.5% a week, capped at 5%. Read more about Liquidated damages
- MSE purchase preference
- Under the Public Procurement Policy for Micro and Small Enterprises, a registered MSE quoting within L1 plus 15% may match L1 and supply up to 25% of the tendered value. Read more about MSE purchase preference
- OEM authorisation certificateOEM Authorization Certificate
- A letter from the original equipment manufacturer authorising a named bidder to quote its product in a specific bid. A reseller bidding someone else's product needs one when the bid document asks for it. Read more about OEM authorisation certificate
- Past performance criterionExperience criteria, similar work, past experience
- The tender condition that asks a bidder to prove earlier supply or work of a similar kind, by value, quantity or years, before its bid is ranked. It is separate from the turnover criterion. Read more about Past performance criterion
- Performance securityPerformance bank guarantee, PBG
- The security the successful bidder furnishes after award to secure performance of the contract. Since 1 January 2024 it is 3% to 5% of contract value for goods and services under GFR Rule 171. Read more about Performance security
- Pre-bid meetingPre-bid conference
- A meeting the buyer holds after publishing a tender and before bids close, to clear doubts about specifications and commercial terms. Attendance is optional, but a bidder who skips it or sends no written query is taken to have no objection. Read more about Pre-bid meeting
- QCBSQuality and cost based selection
- Quality and cost based selection ranks bids on a combined score of technical marks and price. Bidders below the technical pass mark never reach price evaluation. Read more about QCBS
- Rate contractFramework agreement
- A standing offer to supply specified goods at agreed prices and terms for a set period. No quantity is promised, buyers place supply orders against it, and each supply order becomes a binding contract. Read more about Rate contract
- Reverse auctionBid to RA
- A live price competition among technically qualified bidders after a bid closes, in which prices can only go down. On GeM the buyer enables it as bid to RA, and L1 is the lowest total price when it ends. Read more about Reverse auction
- Single tenderSingle tender enquiry, STE
- A tender invitation sent to one firm only. GFR Rule 166 allows it for a sole manufacturer, a recorded emergency, or compatibility with existing equipment, each with the competent authority's approval. Read more about Single tender
- Startup relaxationRelaxation of prior experience and prior turnover for startups
- A rule under GFR 2017 Rule 173(i) that lets a buyer relax the prior turnover and prior experience conditions for startups recognised by DPIIT, provided quality and technical specifications are still met. Department of Expenditure instructions say buyers should normally apply it. Read more about Startup relaxation
- Tender ID
- The identifier the eProcurement system gives each tender on CPPP and the GePNIC portals. It is the reliable way to find one tender again, because CPPP tender links do not work outside the session that made them. Read more about Tender ID
- Two-bid systemTwo packet bid, technical and financial covers
- A tendering method under GFR 2017 Rule 163 in which the technical bid and the financial bid are submitted separately, and financial bids are opened only for bidders whose technical bids are acceptable. Read more about Two-bid system
- Udyam registrationUdyam Registration Certificate, URC, MSME registration
- The Ministry of MSME's free, self-declared online registration for micro, small and medium enterprises, live since 1 July 2020. In central tenders it is the proof of MSE status behind EMD exemption and MSE purchase preference. Read more about Udyam registration
Read from the document, not typed by us
For every GeM match, ScanX opens the bid document and reads EMD, ePBG, turnover floor, experience, MSE relaxation, reverse auction and OEM authorisation into the row you receive.