Lot

A lot is a defined part of a larger procurement package that is separately tendered and can be awarded independently. Contracting authorities divide procurements into lots when the overall requirement is large enough to attract different types of suppliers — for example, dividing a nationwide IT support contract into regional lots, or splitting a facilities management tender into cleaning, security, and maintenance lots.

EU Directive 2014/24/EU encourages lot-based tendering as a means to improve SME access to public contracts. Very large contracts, when tendered as a single lot, may attract only large integrators. By breaking the requirement into smaller lots, authorities open competition to specialist or regional SMEs. Authorities opting not to use lots must justify this decision in the tender documents.

For vendors, lots are both an opportunity and a strategic complexity. A firm may bid on some lots but not others, concentrating effort where its capability is strongest. Many authorities cap the number of lots any single tenderer can win, to prevent large suppliers from sweeping all lots. Vendors should assess lot combination scenarios carefully — winning multiple lots can strain delivery capacity, but limiting bids may leave revenue on the table. Consortium arrangements can be structured around lot-specific responsibilities.