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. The announcement must conform to the legal requirements imposed by established laws, rules, policies and procedures to inform the public.
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.
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.
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.
COMMODITY
A transportable article of trade or commerce that can be bartered or sold.
COMMODITY/SERVICE CONTRACT
Previously referred to as "M-contracts." Since the inception of MAPS, the contract number is a six-digit number assigned by the computer system. An "M" number is no longer assigned for these types of contracts.
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.
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.
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.
DEMURRAGE
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.
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.
ENVIRONMENTALLY PREFERABLE PRODUCT (EPP)
A product or service that has a lesser or reduced impact on human health and the environment when compared with competing products or services that serve the same purpose. Such products or services may include, but are not limited to those which contain recycled content, minimize waste, conserve energy or water, and reduce the amount of toxics either disposed of or consumed.
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.
FORMAL SOLICITATION
A solicitation which requires a sealed response.
GOODS
All types of personal property including commodities, materials, supplies, and equipment.
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.
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.
LEAD TIME
The time that it would take a supplier to delivery goods after receipt of order.
LESS-THAN-TRUCKLOAD (LTL)
A quantity of freight less than the amount necessary to constitute a truckload.
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.
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.
