Dictionary of Procurement Terms

A situation that gives a person, while acting in their official capacity, the opportunity through actions or decisions to direct or influence an outcome for personal benefit.

A process leading to the resolution of a contractual conflict or opposition, such as a public entity’s policy to attempt to resolve by mutual agreement all contractual issues in a controversy (e.g., factfinding, negotiation, facilitation, mini-trials, mediation, or arbitration).

Indirect expense or loss incurred, not because of one party's breach of contract, but as an end result of the breach (e.g., lost profits, attorneys' fees).

An ethical decision-making model that calls attention to all stakeholders and requires the decision-maker to predict the likely results of an act and weigh the good it will produce against the harm it will cause.

1. Something of value that is exchanged between two parties and serves to form or bind a contract. 2. A mutual commitment that must exist to form an express contract. 3. That which is given or promised to bring a binding contract into existence.

A person, company, or government agency, usually the buyer, to whom goods are to be delivered by the consignor.

The goods or property shipped via a common carrier from one location to another.

An arrangement in which a supplier maintains an inventory of goods on an entity's site. The entity then draws from the supplier's stock as needed and only pays for the goods at that time.

A person or company that ships goods to another (the shipper).