Procurement & Tender Glossary

Plain Language, Real Terms

Understand Tender And Procurement Vocabulary Before You Bid Or Buy

Whether you are responding to a government tender on Nepal's electronic procurement portal (e-GP / bolpatra), preparing a technical proposal for a donor-funded programme under an RFP, or buying equipment for a corporation, the same vocabulary comes up again and again - and small misunderstandings cost time and money.

This glossary explains the terms used in Nepali public and institutional procurement in plain language. The definitions below are general procurement descriptions to help you navigate documents and conversations; the controlling document is always the published bid document itself.

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How To Use This Glossary

Look up notice types (RFP, RFQ, EOI, IFB)
Understand documents (BOQ, SBD, ToR)
Learn security & payment terms (bid security, LC)
Know evaluation methods (QCBS, NCB, ICB)
See delivery & warranty vocabulary (Incoterms, DLP)

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Notice Types & Invitations

IFB / ITB: Invitation for Bids / Invitation to Bid - a public notice inviting sealed bids for goods or works, usually for government tenders.
RFP: Request for Proposals - used when the buyer wants a solution or services, often evaluated on technical quality and cost (e.g., QCBS).
RFQ: Request for Quotation - used for low-value or off-the-shelf goods where price is the main criterion.
EOI: Expression of Interest - used to shortlist qualified firms before a formal RFP or pre-qualification.
CFT / RFI: Call for Tenders / Request for Information - an invitation to submit a tender, or a market information request before a formal process.
Tender Notice: The public announcement of an opportunity with reference number, deadline and how to obtain documents.
Pre-Qualification (PQ): A first stage where bidders prove capability and eligibility before being invited to bid.

Documents & Specifications

SBD: Standard Bidding Documents - the template bidding documents issued under PPMO's framework for government tenders.
BOQ / BoQ: Bill of Quantities - the priced list of items, quantities and units in a tender that bidders fill with rates.
ToR / TOR: Terms of Reference - the description of the services or scope required, common in consultancy and RFP processes.
SOW: Scope of Work - the specific activities and deliverables a contractor or supplier must deliver.
Specification / Spec: The technical description of a required item - dimensions, capacity, standards, performance, certification required.
Data Sheet: A manufacturer's technical datasheet used to prove a product meets the specification.
MAL / Authorization Letter: Manufacturer's Authorization Letter - a manufacturer's letter authorizing a bidder to offer its product in a bid.
Test Certificate / Warranty: Proof of testing and the manufacturer's or supplier's after-sales warranty commitment.
BD / Bidding Document: The formal tender document that defines the goods, quantities and the terms and conditions of the bid.
BDS / Bid Data Sheet: The part of a standard bidding document that states the specific data for one tender - deadlines, bid security amounts and requirements - read together with the general conditions.
LGRS / List of Goods and Related Services: The section listing every item to be supplied plus related services such as delivery, installation and training that the bid prices.
SR / Schedule of Requirements: The section describing what is required, where it must be delivered and the acceptance criteria.
TS / Technical Specifications: The detailed technical requirements the offered goods must meet, used to evaluate each bid's conformity.
SBQ / Schedule of Bidder Qualifications: The form where the bidder declares its qualifications, experience and eligibility to be evaluated.
DCS / Delivery and Completion Schedule: The timeline showing when the goods and related services will be delivered or completed.
GCC / General Conditions of Contract: The standard contract terms that apply to all contracts under a given bidding document framework.
SCC / Special Conditions of Contract: Amendments to the general conditions that apply only to one specific contract or tender.

Pricing, Payment & Security

Bid Security / Bid Bond: A guarantee that the winning bidder will sign the contract; often a bank guarantee or cash deposit issued with the bid.
Performance Security: Security provided by the contractor after award to guarantee contract performance.
Advance Payment Guarantee: A bank guarantee covering an advance paid before goods or works are delivered.
Retention Money: A portion of payments held back as protection, often released at the end of the defect liability period.
Bank Guarantee (BG): An undertaking from a bank to pay if the bidder or contractor fails to meet its obligation.
Letter of Credit (LC): A bank's payment undertaking on behalf of an importer, common in international supply.
Unit Rate / Lump Sum: Payment by measured quantity (unit rate) or by a fixed total price (lump sum).
VAT: Value Added Tax applied by tax authorities; prices in Nepal tenders should clarify whether VAT is included or extra.
PAN / Permanent Account Number: The tax registration number of a firm in Nepal, required on bids, invoices and for e-GP supplier registration.

Methods & Evaluation (Used In Nepal)

NCB: National Competitive Bidding - open to national bidders under national procedure.
ICB: International Competitive Bidding - open to international bidders, often used for large or donor-funded contracts.
1S1E / 1S2E: Single-stage single-envelope and single-stage two-envelope bidding: in 1S1E the technical and financial parts go in one envelope, while in 1S2E the financial envelope is opened only after the technical evaluation succeeds. The procedure is stated in the bidding document.
Bid Document Fee: The fee charged for obtaining the bidding document, stated in the Invitation for Bids and usually paid to a designated bank account and government heading as the tender notice specifies.
LB: Limited Bidding - invited to a shortlist of qualified suppliers rather than open to all.
Sealed Quotation (SQ): Simple procedure for lower-value goods; sealed quotations compared on price and conformity.
Direct Procurement / Single Source: Procurement from one justified source without competition-at-large.
Framework / Unit Rate Contract: An agreement under which items are supplied at agreed prices over a period at agreed call-off terms.
Turn-key / EPC: Design, supply and installation as one responsibility, handing over a working system.
QCBS / QBS / LCBS / FBS: Selection methods: Quality-and-Cost Based, Quality Based, Least Cost Based, and Fixed Budget Selection for consultancy.
Responsive Bid / Qualified Bidder: A bid that meets material requirements (responsive) and a bidder that meets eligibility (qualified).
Addendum: An official amendment to an issued bidding document, e.g., deadline or spec change.
EQC / Evaluation and Qualification Criteria: The rules and thresholds by which bids are evaluated and bidders qualified before and after submission.

Delivery & After-Sales

Incoterms (EXW, FOB, CIF, DAP): Standard trade terms defining who pays freight, insurance and risk at each delivery point.
ICC / International Chamber of Commerce: The body that publishes the Incoterms used in international delivery and letters-of-credit practice.
Lead Time: The time from order confirmation to delivery - critical in tender timelines.
Inspection & Acceptance: Buyer verification that goods match the specification before acceptance and payment.
DLP / Defect Liability Period: The period after handover during which the supplier corrects defects.
Warranty Support: After-sales repair or replacement commitment from the manufacturer or supplier.
Spare Parts Support: Availability of spares to keep the supplied equipment operational.

Platforms & Institutions

e-GP / Bolpatra: Nepal's electronic Government Procurement portal at bolpatra.gov.np, where public entities publish tenders and bidders submit electronically.
PPMO: Public Procurement Monitoring Office - the apex body that runs e-GP and issues standard bidding documents under the Public Procurement Act.
Public Entity (PE): Any government ministry, department, municipality, board or authority that procures through the system.
Class "A" Commercial Bank: Authorized banks that collect bid document fees and issue bid/performance securities within e-GP.
Bid Capacity: An e-GP-calculated limit on the size of contract a bidder can safely take, based on turnover and liabilities.
DP / Development Partner: A donor or funding agency (e.g., the World Bank, ADB, UNDP, JICA) that co-funds procurement and whose guidelines may apply to a project.
GoN / Government of Nepal: The public buyer side of a government tender, sometimes written as GoN or GoN1 in documents and forms.

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Frequently Asked Questions

Glossary Questions

An IFB/ITB invites sealed bids for goods or works with a defined specification. An RFQ asks for price quotations for off-the-shelf goods. An RFP asks for proposals, often for services or solutions evaluated on technical quality and price. An EOI asks firms to express interest and demonstrate qualification before shortlisting.

Bid security is a guarantee that the winning bidder will sign the contract; it is usually returned to unsuccessful bidders and released once the winner signs. It becomes forfeitable if the winner fails to sign. The amount and form are stated in the bid document.

A MAL is a letter from the manufacturer authorizing a bidder to offer, supply and support its specific product in a tender. Where tenders require it, DNB coordinates this letter from the manufacturer as part of product and documentation supply - if and only if the manufacturer genuinely agrees to it.

Procurement & Tender Glossary For Nepal