Dictionary of Procurement Terms

The traditional project delivery method, which customarily involves three sequential project phases: design, procurement, and construction, and two distinct contracts for the design and construction (build) phases.

A construction project delivery method that combines architectural and engineering design services with construction performance under one contract.

An Alternate Project Delivery Method (ADPM) demonstrating a design-build concept where the owner and designer/contractor work as a team to ensure that the owner’s requirements are met during design and construction. A complex and innovative approach developed through Public-Private Partnerships in which there is much greater involvement of private financing and that often combines construction and management or operations contracts.

Identifies items created by modification of standard commercial products to meet special needs, such as equipment modified to meet the needs of the physically challenged.

A duly authorized representative.

The place to which a shipment is consigned. The final delivery point to which a shipment is routed. A delivery point where title passes from seller to buyer.

Part II of the NIGP Commodity/Service Code, which expands the class-item code into 11 digits with more than 140,000 item descriptions; used in the areas of inventory, warehousing, and cooperative purchasing operations.

A legal document prepared by a procurement professional to justify a decision to take a certain action; includes conclusion, or determination, and the reason or findings of fact.

The deliberate downward adjustment in the official value of one nation's currency in relation to other countries' currencies.

The mathematical difference of interest rates between two currencies, calculated by subtracting the lowest interest rate from the highest.