Every government-tender term, explained in plain English
16 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.
Want the full walkthrough instead of the definition? Read the tender guides.
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 →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 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 →Evaluation & award
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 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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