Lotting is the division of a procurement into separate packages by geography, service, value, specialism or another published basis so suppliers can compete for the parts they can credibly deliver.
Detailed explanation
A buyer may divide a large requirement into lots to improve competition, reflect operational needs and make opportunities more accessible to specialist or regional suppliers. Each lot can have its own scope, value, conditions, capacity requirements and award arrangements.
For SMEs, lotting can turn an otherwise unmanageable national or multi-service contract into a realistic opportunity. The key is not to bid for the greatest number of lots, but to select those where the business has the strongest evidence, resources, local coverage and commercial advantage.
The procurement documents may restrict how many lots a supplier can bid for or win, explain how capacity will be assessed across multiple lots, and set rules for combined awards. These provisions must be modelled before the bid decision is approved.
Why it matters
Appropriate lots can improve SME access and allow buyers to appoint specialists.
How buyers use it
The buyer uses lotting to structure competition, manage market capacity, reduce dependency risk and appoint suppliers whose capability matches defined parts of the requirement.
What suppliers should do
- Map each lot against your geography, workforce, evidence and supply chain.
- Check limits on lots bid for, awarded or combined.
- Model resource demand if several lots are won at once.
- Tailor case studies and delivery plans to each selected lot.
- Record a clear no-bid rationale for unsuitable lots.
Where it fits in the process
- 1Buyer defines requirement
- 2Requirement divided into lots
- 3Supplier assesses fit and capacity
- 4Lot-specific tenders evaluated
- 5Awards made under published rules
Frequently asked questions
Can a supplier bid for more than one lot?
Often yes, but the procurement documents may impose limits or require evidence of combined capacity.
Can the buyer award several lots to one supplier?
Yes where the published rules allow it. Check any caps, ranking rules or combination tests.
Do all lots use the same evaluation criteria?
Not necessarily. Review each lot’s scope, weighting, pricing and mandatory requirements.
Are smaller lots always easier to win?
No. They may attract more specialist competition and still carry demanding requirements.
How should an SME choose lots?
Use a bid/no-bid assessment covering strategic fit, evidence, capacity, margin, mobilisation and competition.
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