Dictionary of Procurement Terms

The document used to solicit proposals from potential providers (proposers) for goods and services. Price is usually not a primary evaluation factor. An RFP provides for the negotiation of all terms, including price, prior to contract award. May include a provision for the negotiation of best and final offers. May be a single-step or multistep process.

A document that is issued by a procurement entity to obtain statements of the qualifications of potential responders (development teams or consultants) to gauge potential competition in the marketplace, prior to issuing the solicitation.

Purchasing method generally used for small orders under a certain dollar threshold. A request is sent to suppliers along with a description of the commodity or services needed, and the supplier is asked to respond with price and other information by a predetermined date. Evaluation and recommendation for award should be based on the quotation that best meets price, quality, delivery, service, past performance, and reliability.

A contract that provides for an indefinite quantity of services over a fixed period of time

Value analysis applied to the development of specifications to eliminate commodities that are not cost effective.

A contract used to order only the materials or services actually required during a contract term. An indefinite quantity contract for frequently used goods or services. See also: Open-End Contract, Price Agreement, Blanket Order.

A method used to assess what is needed, when it is needed, and how much is needed. Such methods may include reviewing past usage of a commodity, estimating future need, reviewing program objectives, analyzing trends, and performing market and demand analyses using software or other forecasting tools with the objective of satisfying the need.

Anyone who initiates a request for goods or services.

The termination or cancellation of a contract to bring all parties, to the degree possible, back to their position before entering into the contract.