Dictionary of Procurement Terms

A process of planning, reviewing, analyzing, and conferring used by two or more parties to reach a mutually acceptable agreement in a contracting relationship.

A group of people, typically including a procurement professional, project manager, technical staff, financial analyst, and legal expert with the essential skills or knowledge necessary to reach a sound agreement. See also: Evaluation Committee/Team.

Payment for goods sold, to be made within a rather short period with no deduction allowed from the invoice price.

Contractual agreement in which the lessee pays, in whole or in part, expenses other than the rental fee (e.g., maintenance costs, taxes, and insurance fees).

Price after all discounts, rebates, etc., have been allowed.

CANADIAN The amount received for the disposal of a material asset after subtracting the costs associated with completing the disposal action.

The actual weight of the contents of a container or the cargo of a vehicle.

An individual who functions specifically to aid parties in resolving controversies through alternative dispute resolution procedures.

A market segment in which buyers have specific or complex needs, requiring specialized suppliers to meet those needs. Because there are fewer suppliers, buyers may not have as many contracting advantages regarding prices, delivery, and return policy.