Glossary of Common Purchasing Terms

The following is a list of definitions for many of the common terms used in government or VANOC purchasing processes.

Bidder

A bidder is a supplier who responds to an Invitation to Quote (ITQ) by submitting a bid. The supplier who is awarded the contract is referred to as the successful bidder.

Contractor

A contractor is a supplier who is providing goods or services subject to the terms and conditions of a contract with a purchaser. Most often, the term “contractor” is used to refer to a supplier of services.

Expressions of Interest

A request for Expressions of Interest (EOI) refers to a process and a document used to obtain information on the level of interest in a planned solicitation opportunity and may be used to pre-qualify suppliers for an opportunity. It is often used when an organization knows that a good or service is available but is not sure if the supplier community is interested or available to compete on the opportunity.

Invitation to Quote

An Invitation to Quote (ITQ) refers to the process and the document used to solicit bids or quotes from suppliers for the provision of clearly specified goods or services. The bids received in response to an ITQ are evaluated on price only.

Pre-Qualification List

A pre-qualification list is a list of potential suppliers who have been pre-qualified for a specific or future opportunity.

Proponent

The term “proponent” refers to a supplier who responds to an RFP by submitting a proposal. The successful proponent is the supplier who is selected from the competitive process to supply an organization with the goods or services required.

Request for Proposal

A Request for Proposal (RFP) refers to the process and the document used to solicit proposals from suppliers that will be evaluated on price as well as other criteria, including supplier qualifications and the proposed solution.

Request for Qualifications

A Request for Qualifications (RFQ) refers to the process used to pre-qualify suppliers who are interested in a current opportunity or for pre-qualifying suppliers who are interested in supplying goods or services in the future on an if-, as- and when-requested basis.

Solicitation

The act of obtaining bids, quotes, offers or proposals.

Supplier

The term “supplier” is often used interchangeably with the term “vendor.” However, in the context of government purchasing, a supplier is a vendor who has been selected through a purchasing process to supply government with goods or services.