Dictionary of Procurement Terms

The physical transfer of possession from one party to another, as from a carrier, supplier, or contractor to the purchaser.

Date or dates by which a shipment is to be delivered to a purchaser or the date by which a service must be completed.

An indefinite delivery/indefinite quantity contract for supplies or services that provides for the issuance of orders for services or supplies during the contract period. May also be referred to as a task order contract.

The requested date by which all goods or services have to be delivered.

A delivery plan indicating the time of beginning and completion of each delivery.

Conditions in a contract regarding freight charges, place and time of delivery, or method of transportation.

A forecasting technique for the purpose of predicting future conditions that relies on a structured panel of subject matter experts (SMEs). The SMEs answer questionnaires in the first round. In subsequent rounds, the SMEs' forecasts from the previous round are provided, along with the rationale they provided for their judgments. They are then encouraged to revise their answers as the result of the input from the other SMEs.

The willingness and ability to buy specific quantities of goods at alternative prices in a given time period. (Schiller, 2000)

An all-inclusive method conducted to quantify, with reasonable accuracy, the anticipated entity material requirements that will be needed to support the entity’s operations.

A binding legal agreement that links spend data by dates and allows for rebates and discounts through automated contract management systems. Pricing is based on historical usage. A contract under which a contractor/supplier agrees to provide goods or services to a purchaser on a demand basis.