Healthcare Procurement Glossary: 30 Terms You Need to Know

Healthcare procurement has its own dense vocabulary, and a lot of it varies by country. This glossary explains the 30 terms suppliers run into most often, from tenders to frameworks to prequalification, in plain English. Bookmark it for the next time an RFP throws an acronym at you.

The basics

• Tender, a formal invitation from a buyer for suppliers to submit competing bids for a contract.
• RFP (Request for Proposal), a detailed tender document asking suppliers to propose a solution against stated requirements. See our full RFP response guide.
• RFQ (Request for Quotation), a simpler request, usually for a well-defined product, focused mainly on price.
• Award, the decision naming the winning supplier and (usually) the contract value. See using award data.
• Bid/No-Bid Decision, a supplier's internal decision on whether to respond to a given tender.

Frameworks and mechanisms

• Framework Agreement, a pre-approved arrangement letting a buyer purchase repeatedly from selected suppliers without a fresh tender each time. Full explainer: framework agreements explained.
• Call-off, an individual order placed under an existing framework agreement.
• DPS (Dynamic Purchasing System), similar to a framework, but stays open for new suppliers to join throughout its life.
• Mini-competition, a smaller competitive round held among suppliers already on a framework.
• Lot, a subdivision of a tender (e.g. by product category or region) that suppliers can bid on separately.

Classification codes

• CPV Code, the EU's Common Procurement Vocabulary, classifying what's being purchased on TED Europa.
• NAICS Code, the US industry classification system used on SAM.gov.
• PSC Code, US Product Service Code, describing the specific product/service bought at federal level.
• Full comparison: CPV codes vs NAICS codes.

Quality and eligibility

• Prequalification, WHO's process certifying a medicine, vaccine or diagnostic meets international quality standards. See WHO prequalification guide.
• Set-Aside, a US federal contract reserved for small or disadvantaged businesses.
• UKCA / CE Marking, conformity marks showing a medical device meets UK/EU safety and performance standards.
• ISO 13485, the international quality management standard for medical device manufacturers.
• MEAT (Most Economically Advantageous Tender), an award approach balancing price against quality, rather than lowest price alone.

Buyers and bodies

• NHS Supply Chain, the central buying organisation for the NHS in England.
• Crown Commercial Service (CCS), cross-government frameworks used across UK public bodies, including the NHS.
• GPO (Group Purchasing Organization), an entity that negotiates purchasing on behalf of a group of healthcare providers.
• Gavi, The Vaccine Alliance and The Global Fund, major global health financing and procurement bodies.
• UNICEF Supply Division, one of the largest global buyers of vaccines and children's health supplies. See WHO vs UNICEF.

Commercial terms

• Social Value, the community, environmental and economic benefit a bid delivers beyond the core contract, now formally scored in much of UK public procurement.
• Compliance Rate, the share of contracts/suppliers meeting required standards in a given market.
• Lead Time, the time from a tender's publication to its submission deadline (or from order to delivery, depending on context).
• Win Rate, the proportion of bids submitted that result in a contract award.
• Incumbent, the supplier currently holding a contract, often re-competing to retain it.
• Best and Final Offer (BAFO), a supplier's final, most competitive offer requested late in some procurement processes.

How HealthProcure Intel helps

HealthProcure Intel turns these concepts into a working dashboard, tenders, frameworks, awards and benchmarks from TED Europa, SAM.gov, WHO and NHS in one place, normalised so the terminology differences between markets don't get in your way. Start free, no credit card required.

Frequently asked questions

Are these terms the same in every country?

Broadly similar concepts recur everywhere, but exact terminology and mechanisms vary, e.g. CPV codes are EU-specific, NAICS/PSC are US-specific.

What's the difference between a tender and an RFP?

Tender is the general term for the competitive process; an RFP is a specific, usually detailed type of tender document requesting a full proposal.

Where can I learn more about a specific term?

Check the linked guides throughout this glossary, each covers one topic in depth.