Glossary of Common Procurement Terms
The act of accepting by an authorized representative; an indication of a willingness to pay; the assumption of a legal obligation by a party to the terms and conditions of a contract.
The act of acquiring goods and services (including construction) for the use of a governmental activity through purchase, rent, or lease. Includes the establishment of needs, description of requirements, selection of procurement method, selection of sources, solicitation of procurement, solicitation for offers, award of contract, financing, contraction administration, and related functions.
An addition or supplement to a document; e.g., items or information added to a procurement document.
To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conform to the legal requirements imposed by established laws, rules, policies and procedures to inform the public.
A duly executed and legally binding contract; the act of agreeing.
Authority for Local Purchase: granted by the commissioner of Administration to an individual who has successfully completed all requirements established by the Office of State Procurement.
– ALTERNATE RESPONSE
A substitute response; an intentional substantive variation to a basic provision or clause of a solicitation by a vendor.
– AMENDMENT/CHANGE ORDER
A written modification to a contract or purchase order or other agreements.
Sum of money from public funds set aside for a specific purpose.
After Receipt of Order.
– BEST VALUE
A result intended in the acquisition of all goods and services. Price must be one of the evaluation criteria when acquiring goods and services. Other evaluation criteria may include, but are not limited to environmental considerations, quality, and vendor performance.
– BILL OF LADING
A written receipt or contract, given by a carrier, showing a list of goods delivered to it for transportation. The straight bill of lading is a contract which provides for direct shipment to a consignee. The order bill of lading is negotiable; it enables a shipper to collect for a shipment before it reaches its destination (this is done by sending the original bill of lading with a draft drawn on the consignee through a bank). When the consignee receives the lading indicating that payment has been made, the lading will be surrendered to the carrier’s agent, and the carrier will then ship the goods to the consignee, and the bill of lading will be surrendered to the carrier. Note: Shippers frequently consign shipments to themselves on order bills of lading so that delivery is made only upon the shipper’s order; the person or firm to be notified upon arrival of the shipment at destination must be designated.
– BLANKET ORDER
A contract under which a vendor agrees to provide goods or services on a purchase-on-demand basis. The contract generally establishes prices, terms, conditions and the period covered (no quantities are specified); shipments are to be made as required by the purchaser.
– “BRAND NAME OR EQUAL” SPECIFICATION
A specification that uses one or more manufacturers brand names or catalog numbers to describe the standards of quality, performance and other characteristics needed to meet the requirements of a solicitation and provide for the submission of equivalent products.
A business that carries no inventory and that has no written ongoing agreement with any manufacturer or manufacturer’s authorized distributor to sell the products of the manufacturer.
A contractor, subcontractor, supplier, consultant, or provider of technical, administrative, or physical services organized as a sole proprietorship, partnership, association, corporation, or other entity formed for the purpose of doing business for profit.
A transportable article of trade or commerce that can be bartered or sold.
– COMMODITY/SERVICE CONTRACT
Standard agreement for the purchase of a commodity or service from a supplier or vendor.
– COMPREHENSIVE PROCUREMENT GUIDELINES (CPG)
Designates items that must contain recycled content when purchased by federal, state, and local agencies, or by contractors using appropriated federal funds, when these agencies spend more than $10,000 a year on any of the designated items. For example, if a state agency spends more than $10,000 a year on copy paper, and part of that money is from appropriated federal funds, then that state agency must follow the EPS guidelines and buy 30 percent post-consumer recycled paper. (Section 6002 of the Resource Conservation and Recovery Act [RCRA] and Presidential Executive Order 13101.)
Something of value given or done as recompense that is exchanged by two parties; that which binds a contract.
Any written instrument or electronic document containing the elements of offer, acceptance, and consideration to which an agency is a party.
– CONTRACT ADMINISTRATION
The management of all actions after the award of a contract that must be taken to assure compliance with the contract; e.g., timely delivery, acceptance, payment, closing contract, etc.
A person who agrees to furnish goods or services for a certain price; may be a prime contractor or subcontractor.
– COOPERATIVE PURCHASING
The combining of requirements of two or more governmental units to obtain the benefits of volume purchases and/or reduction in administrative expenses.
– DEALER, JOBBER OR DISTRIBUTOR
A business that maintains a store, warehouse, or other establishment in which a line or lines of products are kept in inventory and are sold to the public on a wholesale or retail basis.
The disqualification of a person to receive invitations for bids or requests for proposals, or the award of a contract by a government body, for a specified time commensurate with the seriousness of the offense, the failure, or the inadequacy of performance.
Failure by a party to a contract to comply with contractual requirements.
The formal handing over of property; the transfer of possession, such as by carrier to purchaser.
The detention of a ship, railroad, car or truck beyond a specified time for loading/unloading; the payment required and made for the delay.
– DESIGN SPECIFICATION
A specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product is to be manufactured.
The place to which a shipment is consigned.
– DROP SHIPMENT
Merchandise which is shipped by a manufacturer directly to a customer in response to the seller who collects orders but does not maintain an inventory.