Glossary of procurement terms

This is where the index would go

A

ACCEPTANCE
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
ACQUISITION
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
ADDENDUM
An addition or supplement to a document; e.g., items or information added to a procurement document
ADVERTISE
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.
AGREEMENT
A duly executed and legally binding contract; the act of agreeing
AMENDMENT/CHANGE ORDER
A written modification to a contract or purchase order or other agreements
APPROPRIATION
Sum of money from public funds set aside for a specific purpose
ARO
After Receipt of Order

B

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.
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
BROKER
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
BUSINESS
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

C

COMMODITY
A transportable article of trade or commerce that can be bartered or sold
CONSIDERATION
Something of value given or done as recompense that is exchanged by two parties; that which binds a contract
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
CONTRACTOR
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

D

DEBARMENT
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
DEFAULT
Failure by a party to a contract to comply with contractual requirements
DELIVERY
The formal handing over of property; the transfer of possession, such as by carrier to purchaser
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
DESTINATION
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

E

ENERGY STAR
A federal standard applied to office equipment for the purpose of rating the energy efficiency of the equipment. Energy Star computers, monitors, and printers save energy by powering down and going to "sleep" when not in use, resulting in a reduction in electrical bills and pollution levels
EQUAL OR APPROVED EQUAL
Used to indicate that an item may be substituted for a required item if it is equal in quality, performance and other characteristics
ESCALATION CLAUSE
A contract provision which permits the adjustment of contract prices by an amount or percent if certain specified contingencies occur, such as changes in the vendor's raw material or labor costs
EVALUATION OF RESPONSES
The examination of responses after opening to determine the vendor's responsibility, responsiveness to requirements, and other characteristics of the solicitation relating to the award

F

FISCAL YEAR
The 12 months between one annual settlement of financial accounts and the next; a term used for budgeting, etc. The fiscal year for Garland ISD  is July 1 to June 30
FORMAL SOLICITATION
A solicitation which requires a sealed response

G

GOODS
All types of personal property including commodities, materials, supplies, and equipment

H

HAZARDOUS WASTE
Any waste (solid, liquid, or gas) which because of its quantity, concentration, or chemical, physical, or infectious characteristics pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of

I

INFORMAL SOLICITATION
A solicitation which does not require a sealed response
INSURANCE
A contract between an insurance company and a person or group which provides for a money payment in case of covered loss, accident or death
INVOICE
A list of goods or services sent to a purchaser showing information including prices, quantities and shipping charges for payment

L

LEAD TIME
The time that it would take a supplier to delivery goods after receipt of order
LEASE
A contract conveying from one entity to another the use of real or personal property for a designated period of time in return for payment or other consideration
LESSEE
One to whom a lease is granted
LESSOR
One who grants a lease
LIFE CYCLE COSTING
A procurement evaluation technique which determines the total cost of acquisition, operation, maintaining and disposal of the items acquired; the lowest ownership cost during the time the item is in use
LINE ITEM
An item of supply or service specified in a solicitation for which the vendor must specify a separate price
LIQUIDATED DAMAGES
A specific sum of money, agreed to as part of a contract to be paid by one party to the other in the event of a breach of contract in lieu of actual damages, unless otherwise provided by law
LIST PRICE
The price of an article published in a catalog, advertisement or printed list from which discounts, if any, may be subtracted
LOWEST RESPONSIBLE BIDDER
The vendor with the lowest price whose past performance, reputation and financial capability is deemed acceptable

M

MANDATORY
Required by the order stipulated, e.g., a specification or a specific description that may not be waived
MATERIAL VARIANCE/MATERIAL DEVIATION
A variance or deviation in a response from specifications of conditions that allows a responder a substantial advantage or benefit not enjoyed by all other responders or that gives the state something significantly different from what the state requested in the solicitation document
MULTIPLE AWARD
Contracts awarded to more than one supplier for comparable supplies and services. Awards are made for the same generic types of items at various prices

N

NEGOTIATION
Requests for proposals are sometimes used as a starting point for negotiations to establish a contract. RFPs generally include more than just price considerations. This method is especially applicable when dealing with a single source manufacturer
NET PRICE
Price after all discounts, rebates, etc., have been allowed
NO BID
A response to a solicitation for bids stating that respondent does not wish to submit an offer.

O

OPTION TO EXTEND/RENEW
A provision (or exercise of a provision) which allows a continuance of the contract for an additional time according to permissible contractual conditions
OSHA
The Occupational Safety and Health Administration. Created by the OSHA Act

P

PACKING LIST
A document which itemizes in detail the contents of a particular package or shipment
PARTIAL PAYMENT
The payment authorized in a contract upon delivery of one or more units called for under the contract or upon completion of one or more distinct items of service called for thereunder
PERFORMANCE BOND
A contract of guarantee, executed subsequent to award by a successful vendor to protect the buyer from loss due to the vendor's inability to complete the contract as agreed
PERFORMANCE SPECIFICATION
A specification setting forth performance requirements determined necessary for the item involved to perform and last as required
Point of origin (Shipping point)
The location where a shipment is received by a transportation line from the shipper
POLITICAL SUBDIVISION
A subdivision of a state which has been delegated certain functions of local government. Can include counties, cities, towns, villages, hamlets, boroughs and parishes
PRE-BID CONFERENCE
A meeting arranged by a procurement office to help potential bidders understand the requirements of an RFB or an RFP
PREFERENCE
An advantage in consideration for award for a contract granted to a vendor by reason of the vendor's residence, business location, or business classifications (e.g., minority, small business)
PREPAID
A term denoting that transportation charges have been or are to be paid at the point of shipment
PRICE
The amount of money that will purchase a definite weight or other measure of a commodity
PRICE AGREEMENT
A contractual agreement in which a purchaser contracts with a vendor to provide the purchaser's requirements at a predetermined price. Usually involves a minimum number of units, orders placed directly with the vendor by the purchase, and limited duration of the contract. See Blanket Order and Requirements Contract
PROCUREMENT
The combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, store keeping, and salvage and disposal operations
PROPRIETARY
The only items that can perform a function and satisfy a need. This should not be confused with "single source." An item can be proprietary and yet available from more than one source. For example, if you need a camera lens for a Nikon camera, the only lens that will fit is a Nikon lens, thus, this lens is "proprietary." However, the Nikon lens is available from more than one source, thus, it is not single source
PURCHASE ORDER
The signed written acceptance of the offer from the vendor. A purchase order serves as the legal and binding contract between both parties

Q

QUALIFIED VENDOR/RESPONSIBLE VENDOR
A vendor determined by a buying organization to meet minimum set standards of business competence, reputation, financial ability and product quality for placement on the vendor list
QUANTITY DISCOUNT
A reduction in the unit price offered for large volume contracts

R

RECYCLED CONTENT
The portion of a product that is made from materials directed from the waste stream; usually stated as a percentage by weight
RECYCLED PRODUCT
A product that contains the highest amount of post-consumer material practicable, or when post-consumer material is impracticable for a specific type of product, contains substantial amounts of pre-consumer material
REMANUFACTURED PRODUCT
Any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form
RENT
A rental contract giving the right to use real estate or property for a specified time in return for rent or other compensation
REQUEST FOR BID (RFB)
A solicitation in which the terms, conditions, and specifications are described and responses are not subject to negotiation
REQUEST FOR PROPOSAL (RFP)
A solicitation in which it is not advantageous to set forth all the actual, detailed requirements at the time of solicitation and responses are subject to negotiation. Price must be a factor in the award but not the sole factor
REQUISITION
An internal document that a functional department (stores, maintenance, production, etc.) sends to the purchasing department containing details of materials to meet its needs, replenish stocks or obtain materials for specific jobs or contracts
RESIDENT VENDOR
A person, firm, or corporation authorized to conduct business in the State of Texa
RESPONDER
One who submits a response to a solicitation document
RESPONSE
The offer received from a vendor in response to a solicitation. A response includes submissions commonly referred to as "offers," "bids," "quotes," or "proposals."
RESPONSIBLE BIDDER
A bidder whose reputation, past performance, and business and financial capabilities are such that the bidder would be judged by an appropriate authority as capable of satisfying an organization's needs for a specific contract
RESPONSIVE BIDDER
A bidder whose bid does not vary from the specifications and terms set out in the invitation for bids
RESTRICTIVE SPECIFICATIONS
Specifications that unnecessarily limit competition by eliminating items capable of satisfactorily meeting actual needs. See Performance Specification
REUSED PRODUCT
Any product designed to be used many times for the same or other purpose without additional processing other than specific requirements, such as cleaning, painting or minor repairs

S

SALES TAX
A levy on a vendor's sale by an authorized level of government
SEALED
A method determined by the commissioner to prevent the contents being revealed or known before the deadline for submission of responses
SERVICES
Unless otherwise indicated, both professional or technical services and service performed under a service contract
SINGLE SOURCE
An acquisition where, after a search, only one supplier is determined to be reasonably available for the required product, service or construction item
SMALL BUSINESS
A designation for certain statutory purposes referring to a firm, corporation or establishment having a small number of employees, low volume of sales, small amount of assets or limited impact on the market
SOLICITATION
The process used to communicate procurement requirements and to request responses from interested vendors. A solicitation may be, but is not limited to a request for bid and request for proposal
SOURCE REDUCTION PRODUCT
A product that results in a net reduction in the generation of waste, and includes durable, reusable and remanufactured products; products with no packaging or reduced packaging
SPECIFICATION
A concise statement of a set of requirements to be satisfied by a product, material or process that indicates whenever appropriate the procedures to determine whether the requirements are satisfied. As far as practicable, it is desirable that the requirements are expressed numerically in terms of appropriate units, together with their limits. A specification may be a standard, a part of a standard, or independent of a standard
STANDARD
An item's characteristic or set of characteristics generally accepted by the manufacturers and users of the item as a required characteristic for all such items
STANDARDIZATION
The process of defining and applying the conditions necessary to ensure that a given range of requirements can normally be met, with a minimum of variety, in a reproducible and economic manner based on the best current techniques
SURPLUS PROPERTY
Property in excess of the needs of an organization and not required for its foreseeable use. Surplus may be used or new, but it possesses some usefulness for the purpose it was intended or for some other purpose

T

TABULATION OF RESPONSES
The recording of responses for the purposes of comparison, analysis and record keeping
TERMS AND CONDITIONS
A phrase generally applied to the rules under which all bids must be submitted and the stipulations included in most purchase contracts; often published by the purchasing authorities for the information of all potential vendors

U

UNIFORM COMMERCIAL CODE (UCC)
A comprehensive modernization of various statutes relating to commercial transactions, including sales, lease, negotiable instruments, bank deposits and collections, funds transfers, letters of credit, bulk sales, documents of title, investment securities and secured transactions. The Minnesota law is found in Minn. Stat. Ch. 336
UNIT PRICE
The price of a selected unit of a good or service (e.g., pound, labor hours, etc.)

V

VENDOR
Someone who sells something; a "seller."
VENDORS LIST
A list of names and addresses of suppliers from whom bids, proposals and quotations might be expected. The list, maintained by the purchasing office, should include all suppliers who have expressed interest in doing business with the government

W

WARRANTY
The representation, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. Not to be confused with "guarantee," which means a contract or promise by one person to answer for the performance of another person.