Other definitions

Term

Definition

 

Benchmarking

Comparative exercise using other similar services/contracts as a way of assessing price or performance.

 

Business case

The justification for a project based on its rationale, risk, cost and benefits.

 

Business owner

The front-line manager with responsibility for a contract or element of a contract.

 

Change control

The process of managing changes to a contract.

 

Client leadership

An approach to managing a contract in such a way as to take leadership over the focus of the parties involved.

 

Commercial strategy

An overall strategy for a contract, with a clear rationale and link to organisational strategy and how value for money will be achieved. Part but not all of this will be the commercial case as part of the business case.

 

Contract management plan

Plan for how to manage a contract which sets out resources, risks and the various contract management activities that will be carried out.

 

Control test

Checks performed to verify whether internal controls are working.

 

Crown Commercial Service

Executive agency sponsored by the Cabinet Office which brings together policy, advice and direct buying for the public sector.

 

Forensic audit

Evaluation of financial information for use as evidence in court.

 

Framework

An agreement with suppliers to establish terms governing contracts that may be awarded during the life of the agreement.

 

KPIs

(Key Performance Indicators)

A series of measures against which performance on a contract can be judged, which should incentivise good performance and penalise poor performance.

 

Market engagement

The process of identifying potential suppliers and discussing contracts or potential contracts with them.

 

OJEU notice

Official Journal of the European Union (EU) notice - publication that lets potential suppliers know of a procurement process under EU rules.

 

Open book

A type of supply chain assurance wherein the supplier makes more of their contractual and financial information available.

 

Partnering

Development of successful, long term, strategic relationships between customers and suppliers, based on achieving best practice.

 

Payment by results

A type of public policy where payments are contingent on the independent verification of results.

 

PFI

Private Finance Initiative (PFI) as a way of funding public infrastructure projects with private capital.

 

Preferred bidder

The bidder which the vendor intends to award the business to, subject to the completion of negotiations and legal arrangements.

 

Project management

The whole process by which projects are carried out, including wider strategic consideration outside of commercial factors.

 

Segmentation

Identifying different types of contract, for example by size or risk, to manage them in different ways.

 

Sensitivity analysis

The study of how the uncertainty in an output can be apportioned to different sources of uncertainty in its inputs.

 

Service Credit

Mechanism for reducing payments if supplier performance fails to meet expected standards.

 

Service Level Agreement (SLA)

Agreement on the levels of performance expected, which can be used to decide service credits and other incentives.

 

Should-cost model

Model which allows an estimation of the expected cost of goods or services to use as a comparator for bids received or actual costs.

 

Sourcing

Process of finding, evaluating and engaging potential suppliers about an upcoming opportunity.

 

SRO

Senior Responsible Owner with the ultimate responsibility for a contract.

 

Staffing model

A model for staff requirements and which staff will be allocated to a contract to meet its contract management requirements.

 

Substantive test

Analytical procedures or tests of detail used to verify assertions.

 

Supplier Relationship Management (SRM)

Methods of strategically planning for, and managing, interactions with supplier.

 

Transitioning

Process of changing from one contract for a service/good to another contract for the same or similar contract/good.