Dictionary of Procurement Terms

A formal complaint made against the methods employed or decisions made by a procurement authority during the process of awarding a contract. See also: Award Protest, Protest, Dispute.

An arrangement among potential competitors to manipulate the competitive bidding process by, for example, agreeing not to bid, bid a specific price, rotate bidding, or give kickbacks to purchasers.

An item showing the characteristics of the offered product by a bidder and used by the entity to verify compliance with the specifications set forth in the Invitation for Bids.

A bond or deposit that guarantees that the bidder, if awarded the contract, will honor their bid as submitted.

A summary document of all bidders with their total extended prices that the entity has calculated and verified to ensure accuracy. This may also include unit prices for each item; total prices; delivery terms and conditions; determination of whether each bidder has met the requirements for licenses; bonds; evidence of insurance, or other information deemed appropriate by the procurement professional. See also: Bid Analysis, Bid Evaluation.

A supplier who submits a bid in response to an Invitation for Bids (IFB), Invitation to Tender (ITT), or other formal solicitation type in which price is the primary factor in the evaluation process for award determination. See also: Offeror, Proposer, Responder.

A list of names and addresses of suppliers from whom bids, proposals, or quotations can be solicited. The list is generally retained in a retrievable database. See also: Source List.

A change that requires the written approval of both parties to a contract in signatory form. Bilateral modification is often related to some alteration of one or more substantive terms of the contract. See also: Unilateral Modification (of a Contract).

A market with only one buyer and one seller. (Schiller 2000)