Every government-tender term, explained in plain English
26 definitions covering the words you meet in every Indian government tender — from EMD and QCBS to GeM, BOQ and Make-in-India. No jargon, no fluff.
Tender basics
What is a Tender? (Tender Meaning)
A tender is a formal, structured invitation issued by a buyer — usually a government body or PSU — asking suppliers to submit competitive bids to supply goods, execute works or provide services. The bidder that best meets the stated criteria and price is awarded the contract.
Read →What is an NIT (Notice Inviting Tender)?
NIT stands for Notice Inviting Tender — the formal public notice a government buyer publishes to invite bids for a work, supply or service. It carries the tender reference number, scope, estimated value, EMD, key dates and eligibility, and marks the official start of the procurement.
Read →What is an E-Tender (E-Tendering)?
An e-tender is a tender that is published, bid on, and evaluated entirely online through a secure e-procurement portal, instead of through physical paper bids. E-tendering replaces sealed envelopes with encrypted digital bids signed using a Digital Signature Certificate (DSC).
Read →What is E-Procurement?
E-procurement is the end-to-end electronic process governments and organisations use to buy goods, works and services — from publishing the requirement to receiving bids, awarding the contract and processing payment — through a digital portal instead of paper.
Read →What is a BOQ (Bill of Quantities)?
BOQ stands for Bill of Quantities — a document in a tender that itemises every material, item of work or service, its measured quantity, and a column where the bidder fills in unit rates and amounts. It is the backbone of your financial (price) bid.
Read →What is a Tender Fee (Document / Processing Fee)?
A tender fee is a non-refundable charge a bidder pays to access a tender document and submit a bid. Also called the tender document fee or processing fee, it covers the buyer’s cost of preparing documents and running the tender, and — unlike EMD — it is never returned.
Read →What is a corrigendum?
A corrigendum (plural: corrigenda) is an official amendment or correction to a published government tender document. It supersedes the original document in the areas it covers and must be read as part of the tender. Bids submitted without accounting for a corrigendum may be declared non-compliant.
Read →GeM & marketplace
What is the Full Form of GeM (Government e-Marketplace)?
GeM stands for Government e-Marketplace — the Government of India’s online portal (gem.gov.in) where central and state government departments, PSUs and autonomous bodies buy goods and services. It replaced the old DGS&D rate-contract system with a transparent, end-to-end electronic marketplace.
Read →What is a GeM Bid?
A GeM bid is a formal competitive procurement initiated by a government buyer on India's Government e-Marketplace (GeM), the unified portal for all central government and many state government purchases.
Read →What is an OEM and OEM Authorization in Tenders?
OEM stands for Original Equipment Manufacturer — the company that actually manufactures a product. In tenders, an OEM authorization (also called a Manufacturer Authorization Form or MAF) is a letter from that manufacturer permitting a dealer or reseller to quote its product for a specific tender.
Read →What is a Reverse Auction (RA) in Tenders?
A reverse auction (RA) is a live, online bidding event in which technically qualified suppliers compete by lowering their prices in real time until the auction closes. Unlike a normal auction where prices rise, in a reverse auction prices fall, and the lowest final bid (L1) usually wins.
Read →Money & guarantees
What is EMD (Earnest Money Deposit)?
EMD (Earnest Money Deposit) is a refundable security deposit that a bidder must submit along with their bid to prove serious intent. If the bidder is disqualified, withdraws after award, or fails to sign the agreement, the EMD is forfeited.
Read →What is a Bid Security Declaration (BSD)?
A Bid Security Declaration (BSD) is a signed undertaking a bidder submits instead of paying Earnest Money Deposit (EMD). In it, the bidder agrees to be suspended from bidding for a stated period if it withdraws or modifies its bid during validity, or fails to sign the contract or furnish performance security after winning.
Read →What is ePBG (Electronic Performance Bank Guarantee)?
ePBG (Electronic Performance Bank Guarantee) is a digital bank guarantee issued by a bank and submitted electronically to the government buyer after you win a contract, as security that you will perform the contract as agreed. It is a mandatory requirement on GeM-awarded contracts and many central/state IT contracts.
Read →What is Performance Security (PBG vs ePBG)?
Performance security is a guarantee the winning bidder gives the buyer to ensure it performs the contract as agreed. It is usually furnished as a Performance Bank Guarantee (PBG) — increasingly in electronic form as an ePBG — for a percentage of the contract value, and is forfeited if the contractor defaults.
Read →Evaluation & award
What is L1 in government tenders?
L1 (Lowest Bidder or Lowest Price) is a procurement evaluation method where the bidder quoting the lowest price, among those who meet the technical qualification criteria, wins the contract. Price is the sole deciding factor once technical eligibility is established.
Read →What is QCBS?
QCBS (Quality and Cost Based Selection) is an evaluation methodology where the final score is a weighted combination of technical quality and price. The winner is not necessarily the cheapest bidder, it is the bidder with the best combined quality-plus-price score.
Read →What is a Two-Packet / Two-Cover / Three-Cover Bid?
A two-packet (or two-cover) bid is a tender submission split into two sealed parts — a technical bid and a financial (price) bid — where the financial bid is opened only for bidders who first qualify technically. A three-cover (three-packet) bid adds a separate cover for EMD and tender fee documents.
Read →What is an EOI (Expression of Interest)?
An EOI (Expression of Interest) is a formal pre-qualification notice issued by a government buyer before the main tender/RFP. Companies respond to the EOI to demonstrate their interest and capability. Only EOI-shortlisted firms receive or are eligible to bid on the final RFP.
Read →What is empanelment?
Empanelment is a process where a government body pre-approves a set of vendors who meet defined eligibility criteria. Once empanelled, vendors can receive direct work orders or be invited to quote for projects, without going through the full competitive bidding process each time.
Read →What is AOC (Acceptance of Contract) in Tenders?
AOC in tenders stands for Acceptance of Contract — the buyer’s formal communication accepting the winning bidder’s offer and awarding the contract. It converts a successful bid into a binding contract and triggers the bidder’s obligations, such as furnishing performance security and signing the agreement.
Read →Eligibility & preferences
What is the Turnover Criteria (Average Annual Turnover) in Tenders?
Turnover criteria in a tender specify the minimum average annual turnover (AAT) a bidder must have achieved over the recent past — usually the last three financial years — to be eligible. It is a financial-capacity test to ensure the bidder is large and stable enough to handle the contract.
Read →What Benefits Do MSEs (MSMEs) Get in Tenders?
MSE (Micro and Small Enterprise) benefits in government tenders come from the Public Procurement Policy for MSEs Order, 2012. They include exemption from tender fee and EMD, a purchase-preference price band, and a mandated share of annual government procurement reserved for MSEs.
Read →What Tender Exemptions Do DPIIT Startups Get?
DPIIT-recognised startups get relaxations in government tenders, including exemption from prior experience and prior turnover requirements and, in many cases, exemption from EMD. These are granted to help new companies compete for public contracts they would otherwise be barred from by legacy eligibility criteria.
Read →What is Make in India (MII) Preference in Tenders?
Make in India preference in tenders comes from the Public Procurement (Preference to Make in India) Order — PPP-MII, 2017 — which gives purchase preference to domestic suppliers based on local content. Suppliers are graded as Class-I (highest local content), Class-II, or Non-Local, and higher classes get priority.
Read →What are the GFR (General Financial Rules), 2017?
GFR stands for General Financial Rules — a set of rules issued by the Department of Expenditure, Ministry of Finance, that govern how the Government of India manages public money, including all public procurement. The current version is the General Financial Rules, 2017, which replaced GFR 2005.
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