Dictionary of Procurement Terms

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.

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.

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.

The top governing body of a corporation, the members of which are elected by the stockholders. (Business 2002)

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).

In good faith.

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.

A business transporting goods and operating under a bond to guarantee performance.

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.