Dictionary of Procurement Terms

Actual or proposed expenditure that is reasonable and incurred solely to advance the work under the contract or agreement, given consistent treatment by the entity, and is within the limitations of the contract terms and statutory or regulatory requirements.

Consisting of both letters and numerals.

1. A substitute bid. 2. A bid submitted with an intentional substantive variation to a basic provision, specification, term, or condition of the solicitation. See also: Alternative (Alternate) Bid/Proposal.

The process of changing the delivery of goods or services traditionally provided by a public entity to the private sector or another public entity.

1. A response to a bid or proposal that does not meet the exact requirements of the specification or scope of work but offers an alternative for consideration. 2. A bid/proposal submitted with an intentional substantive variation to a basic provision, specification, term, or condition of the solicitation. This alternative, in the opinion of the bidder/proposer, achieves the same result. Alternative bids and proposals may render the bid/proposal non-responsive. See also: Alternate Bid (Response).

A process or procedure used voluntarily between parties to resolve issues without the need to resort to litigation. ADR may include, but is not limited to, mediation, fact-finding, and arbitration. See also: Litigation.

A collective term that refers to the use of nontraditional construction contracting methods. The contractor may participate in or advise on the design or may be entirely responsible for the design; the contractor's selection is based on qualifications or best value. Traditional contracting methods may include design-bidbuild or design-build, where alternative methods may include construction management or an alliance/relationship contracting.

An agreed addition to, deletion from, correction, or modification of a document or contract. See also: Authorized Deviation, Change Order, Contract Modification.

An agreed addition to, deletion from, correction, or modification of a document or contract. See also: Authorized Deviation, Change Order, Contract Modification.

A not-forprofit organization that provides resources for Alternative Dispute Resolution (ADR).