Glossary

C |  E |  G |  K |  L |  N |  P |  R |  S |  T |  W

C

Circular economy
A circular economy values resources by keeping products and materials in use for as long as possible. It maximises the use and value of resources to create economic, social and environmental benefits.

Climate change adaptation
Adjustment to the actual or expected effects of climate change. Adaptation plays a key role in reducing exposure and vulnerability to climate change, and can be proactive, reactive, incremental, or transformational.

Contractor
Successful tenderers, including:

• people who are employed and paid by a contingent labour supplier (for example, a recruitment agency) and hired by a NSW Government agency
• contracting entities who are engaged by a NSW Government agency to provide goods, services or works
• supplier entities who are engaged by a NSW Government agency to supply goods, equipment or services.

Note: contractor and supplier can often be used interchangeably, however contractor is more commonly used in relation to construction services contracts.

E

Emissions
Describes the gases and particles that are put into the air or emitted by various sources. These include greenhouse gas emissions and air pollutants which can affect human health and indoor air quality. Note: in this guide, ‘emissions’ is most used to refer to greenhouse gas emissions, while ‘air pollutants’ or ‘air quality’ is used to refer specifically to these impacts.

Environmental sustainability
Using ‘natural resources within their capacity to sustain natural processes while maintaining the life-support systems of nature and ensuring that the benefit of the use to the present generation does not diminish the potential to meet the needs and aspirations of future generations’ (Environment Protection and Biodiversity Conservation Act 1999, p. 815.)

Evaluation criteria
The weighted financial and non-financial criteria contained in the tender documentation that is used to identify the supplier that can fulfil the procurement contract and provide the best value for money.

G

Goods
Rights, interests, or things that are legally capable of being owned, and include, but are not limited to, physical goods and real property as well as intangibles such as intellectual property, contract options and goodwill.

Greenhouse gas emissions
The production of greenhouse gases, including carbon dioxide, methane, and other greenhouse gases, resulting from activities associated with the production, transportation, and provision of goods and services.

K

KPI Key performance indicator (KPI) refers to high level performance measurements within an agreement between parties. Contract KPIs are specific, real, time-based, attainable, measurable, strategic goals within an agreement that details the success of its components and how they relate to the overall contract objective.

L

Life cycle
For procurement, the procurement life cycle includes the process of planning, identifying, sourcing, purchasing, and managing procured goods, services, works and activities.

Procurement activities range from the identification of needs to contract award and execution.

For goods, the product life cycle is the consecutive stages that a good goes through from raw material production to final disposal/recycling.

For professional services, the service life cycle typically ranges from: identifying need, planning, services delivery, analysing outcomes or performance for continuous improvement and services close out.

N

Natural capital
The world’s stock of natural resources, which includes rocks, soils, air, water, and all living organisms. Some natural capital assets provide people with goods and services, often called ecosystem services.

Net zero
A balance between the greenhouse gas emissions going into the atmosphere and the emissions being absorbed by forests, oceans, and the atmosphere. A significant reduction (as close to zero as possible) in emissions generated by human activity is required to achieve net zero.

P

Procurement
The process that begins with the basic 'make or buy' decision, and then spans the 'whole life' of supplier arrangements. It includes defining business needs, designing and implementing arrangements, monitoring and managing contract and supplier performance, and reviewing outcomes to assess the effectiveness of arrangements.

Procurement option
Options that are being considered throughout the procurement process, including product and service options being considered prior to approach to market, offers from different tenderers, and different product or service options that may be available within a single contract or supplier’s offer.

Procurement practitioner
A person responsible for conducting a procurement process to deliver value-for-money outcomes, ensuring the procurement objectives are achieved and governance, probity, fairness, equity, and ethical standards are applied. This encompasses any NSW Government employee undertaking procurement, irrespective of whether procurement is their primary role.

Product
An object or item that is being procured, typically grouped as either a good or a service.

R

Raw materials
A basic material, also known as a feedstock, unprocessed material, or primary commodity, that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products. These may include virgin or recycled raw materials.

Recycled content
The proportion (by mass-weight) of recycled material in a product or packaging. Only pre-consumer and post-consumer material shall be considered as recycled content.

Recycled materials
Recycled materials are recovered materials processed to the point of being suitable for manufacturing into a final product or product component, or for direct use in applications like construction; or recycled material that has been incorporated into a product or product component or used in construction.

Reused materials
Reused materials are materials or products that are used again for the same purpose or for another purpose without changing their structure significantly.

Risk
The potential uncertainties and adverse events that can impact the successful acquisition of goods or services, such as supplier reliability, market fluctuations, regulatory changes, contractual issues and other constraints impacting the procurement process or outcome.

S

Service
Procurement of external service providers to satisfy an organisational need. This can include activities such as strategic planning, technical support, compliance, or operational support.

Stakeholder
Individuals or groups with a vested interest or influence in a project, organisation, or decision-making process.

Submission
A formally submitted tender response made by a tenderer to any invitation (however described) to participate in a procurement process. It does not include an application to be included on a procurement list.

Supplier
The successful tenderer selected to provide goods, services, or works under contract as per the specified tender requirements.

Sustainable procurement
Focuses on spending public money efficiently, economically, and ethically to deliver value for money on a whole-of-life basis. Sustainable procurement extends the assessment of value for money beyond the sourcing process, considering benefits and risks to the organisation, the community, the economy and impacts on the environment.

T

Tender
A formal invitation seeking submissions from tenderers, service providers or contractors for the provision of goods, services, works or activities per specified requirements.

Tender documentation
Documentation provided to suppliers to enable them to understand and assess a procuring agency's requirements and prepare appropriate submissions. It may include the terms and conditions of the procurement, along with conditions for participation, specifications for the goods and services to be provided, and evaluation criteria.

Tenderer
An applicant, respondent or participant to a formal tender process.

Transition out costs
The costs incurred when transitioning from one technology to another. Transition out costs may include staff training, systems integration and upgrades, or the implementation of new processes.

W

Whole-of-life costing
Form of financial analysis that considers the total cost implications associated with a product, service, asset, or project over the course of its entire life cycle, including acquisition, operation, maintenance, and end-of-life costs.