Closed Tender
A tender open only to invited or pre-qualified suppliers; the term used in some jurisdictions for what UK PCR calls Restricted procedure.
Definition
A closed tender is a tender open only to invited or pre-qualified suppliers rather than to any responding supplier. The term is more common in private sector procurement and in some international procurement regimes; UK public procurement under PCR 2015 / PA 2023 uses "Restricted Procedure" for the most-equivalent concept. Closed tenders can also refer to mini-competitions within frameworks and to invitations to quote sent to a small number of selected suppliers under an approved supplier list.
How it works in practice
In private sector and international procurement, "closed tender" usually means the buyer has decided in advance which suppliers to invite, based on prior relationships, market knowledge, or a published supplier registration. The procurement is then run as a structured tender among those invited, with formal scoring against published criteria. Closed tenders are popular in private sector because they reduce evaluation cost and let buyers focus on suppliers they already know. In UK public procurement, the equivalent concept is more constrained: above-threshold work must follow one of the prescribed procurement procedures and the choice between Open (any supplier can bid) and Restricted (only shortlisted suppliers bid) is governed by PCR 2015 / PA 2023 rules. Below-threshold work and call-offs under frameworks have more flexibility: a buyer can invite a small number of suppliers to quote without running a public competition, provided minimum standards (typically 3 quotes for sub-threshold spend; framework rules for call-offs). The term "closed tender" is used loosely in some UK public sector procurement guidance; bidders should not assume "closed" in a UK context means "no public notice" -- always check whether the underlying procurement has a published contract notice or is genuinely invitation-only under a framework or below-threshold procedure.
Common questions
Is "closed tender" the same as Restricted procedure?
Functionally similar but not identical. Closed tender is informal terminology common in private sector and international procurement; Restricted procedure is the formal UK PCR 2015 procedure with prescribed shape (selection questionnaire, shortlist, then ITT). Both involve evaluation of only a defined subset of suppliers rather than the whole market.
Can UK public sector run a closed tender without public notice?
Below-threshold spend can be procured by invitation to a small number of suppliers without public notice, subject to the buyer's internal procurement rules (typically minimum 3 quotes). Above-threshold work must follow the prescribed procurement procedures which involve published notices. Framework call-offs follow framework rules.
When would a buyer use a closed tender approach?
When the supplier pool is known, the requirement is well-defined, and the buyer wants procedural speed. Common for routine purchases under approved supplier lists, for mini-competitions within frameworks, and for below-threshold spend. For higher-value or strategic work, open or restricted procedure with public notice is normally required.