Dictionary of Procurement Terms

A planning tool that provides the framework for effective contract administration with an emphasis on process, output, and outcome. The length and detail of the CAP depends on the complexity and potential risk of the contract. Also referred to as Contract Acquisition Plan.

A cross-functional team comprised of such members as the procurement professional (or their representative), subject matter experts, information technology and engineering representatives, legal advisers, price and cost analysts, quality assurance specialists, and others who offer their expertise to ensure both parties comply with the terms of the contract or assist in resolving conflicts that arise during the contract performance.

An agreed addition to, deletion from, correction, or modification of a contract. See also: Contract Modification.

Total dollar amount negotiated between buyer and seller.

The entity's final decision about which supplier receives the contract.

CANADA The actual performance contract. A submitted bid or proposal is normally viewed as a supplier's offer to enter into Contract “B” with the buyer. Once the buyer has evaluated the bids or proposals, accepts one of them, and executes a contract, Contract “B” is formed between the parties. Contract “B” usually specifies the actual work to be performed by the contractor in delivering goods, services, and/or construction, and the buyer's obligations to pay for those goods, services, and/or construction, if provided according to the terms of the contract.

A person or company that is under contract to transport people or goods for individual contract customers only. See also: Common Carrier, Private Carrier.

Maximum amount available for payment of cost and fee, which the contractor cannot exceed without approval of the entity.

Date on which the parties sign a written contract unless another date is specified in the contract term.

The date by which all contract obligations are scheduled to be met.