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Blanket Order
An agreement to purchase goods
from a specific supplier over a defined period
of time, up to a maximum dollar amount. A
blanket order generally includes established
prices, terms, and conditions for a defined
period of time, although without specifying
quantities. Shipments are to be made when
and as required by the purchaser, which, in
certain cases, may be the end user. See also:
Price Agreement, Schedule Contract, Systems
Contract.
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Blanket Purchase Agreement (BPA)
A simplified
procurement method for fulfilling the
anticipated recurring needs for supplies or
services through the award of competitive
line-item contracts or discounts from a
supplier’s/manufacturer’s catalog, usually
through competition. BPAs are used to reduce
the administrative expenses resulting from
small, recurring requirements.
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Blind Trust
An independently managed trust in
which the beneficiary has no management
rights and is not given notice of alterations in,
or other dispositions of, the property subject
to trust.
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Board of Directors (BOD)
The top governing body
of a corporation, the members of which are
elected by the stockholders. (Business 2002)
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Boilerplate
Standard clauses, e.g., general terms
and conditions, used in a solicitation or
contract. See also: General Provisions,
General Terms and Conditions (T’s and C’s).
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BOM
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Bona Fide
In good faith.
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Bond
1. A certificate reflecting a supplier’s promise to
pay the holder a periodic interest payment
until the date of maturity and a fixed sum of
money on the designated maturity date.
2. A promise by a bond holder or issuer to pay if
the purchaser of the bond does not perform
according to the contract.
3. An interest-bearing security issued by
governments.
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Bonded Carrier
A business transporting goods
and operating under a bond to guarantee
performance.
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Bonded Warehouse
1. A warehouse under bond to the government
for payment of customs duties and taxes on
goods stored or processed there.
2. A warehouse insured against damage or loss
to goods stored there.