Dictionary of Procurement Terms

A standard by which something may be measured or judged.

1. The act of measuring a process, service, or product against the characteristics of the recognized leaders in the given area of review. 2. A study, review, or process whereby a procurement department identifies worldclass entities with which to compare its practices, policies, and performance outcomes.

The gain received from voluntary exchange. (Schiller 2000)

Non-financial forms of compensation provided to employees, such as health benefits, life insurance, pension benefits, paid holidays, and vacation. (Business 2002)

A process requested from one proposer or short-listed proposers for their best price(s) for a specific solicitation prior to determining a contract award. Sometimes used during the Request for Proposals method of procurement. See also: Discretion.

A standard of excellence given to an entity or business unit that demonstrates verifiable performance in a particular category or business area.

An authorized, discretionary decision made for the entity's most advantageous outcome. See also: Discretion.

A set of guidelines accepted by a peer group for an activity, procedure, or operation shown by research and experience to produce optimal results. These guidelines are established or proposed as a standard suitable for widespread adoption.

1. A procurement method that emphasizes value over price. 2. An assessment of the return that can be achieved over the useful life of the item, e.g., the best combination of quality, service, time, price. See also: Value.

Second phase of testing in a software development process.