Dictionary of Procurement Terms

Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 21-30 of 130 results for “A”
  • Accounts Receivables

    Payments that are due to an entity per the contract terms and conditions.
  • Acid Test Ratio

    A financial ratio calculated by subtracting the value of inventory from the current asset amount and dividing by current liabilities. (Schiller 2000)
  • Acknowledgement

    Written or electronic communication sent by the supplier to the entity that indicates that the supplier has accepted the order (Purchase Order). This may be a form of acceptance and may create a bilateral contract. See also: Battle of the Forms.
  • ACORD (Association of Cooperative Operations Research and Development)

    A global nonprofit organization founded in 1970 that serves the insurance and related industries. ACORD facilitates fast, accurate data exchange and more efficient workflows through the development of electronic standards, standardized forms, and tools to support their use. (ACORD 2015)
  • Acquisition

    1. The process of obtaining supplies, services, or construction through purchase, lease, or grants. 2. As defined under FAR 2.101, acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the federal government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. (U.S., FAR 2005)
  • Act of God

    An unforeseen occurrence beyond human control caused by nature, such as a tornado or hurricane. Not attributable to the negligence of the contractor. See also: Force Majeure. (Harney 1992)
  • Actual Authority

    The specific right to perform acts and make decisions or prescribe rules governing the conduct of others as given to an agent by a principal. See also: Apparent Authority. (Garner 2004)
  • Actual Cost

    All direct and indirect costs incurred for services, supplies, or construction as distinguished from estimated or forecasted costs.
  • Actual Damage

    Real damage that can be precisely measured for which compensation is awarded for actual loss or injuries as a consequence of another’s wrongdoing.
  • Ad Hoc Committee

    A committee created for a specific purpose that is in place for a short period of time. They are now being replaced by cross-functional teams in less formalized settings. See also: Cross-Functional Team.



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