Dictionary of Procurement Terms

An association of European countries established in 1992 that acts as one economic unit to establish a common monetary system, eliminate barriers to trade, and promote scientific and technological development.

A process used to assess offers in determining the outcome of a solicitation. For bids and quotes where price is the only factor, evaluation is used to determine the lowest responsive bid from a responsible bidder. For proposals, multiple criteria are used to select the successful proposer based on the highest score received.

A committee established to conduct evaluations of proposals, interviews, and negotiations during the solicitation process for a specific product or service; usually composed of representatives from the functional area identified in the scope of work and may include a procurement professional.

Used in an RFP when soliciting proposals. A proposer is usually selected based on a combination of price and non-price factors. Examples of evaluation criteria include qualifications and experience, technical approach and methods, schedule, and price.

In competitive negotiations, the factors specified in the Request for Proposals (RFP) that will be considered in determining to whom a contract will be awarded.

The examination of bids after opening to determine the bidder’s responsibility, responsiveness to requirements, and other aspects of the bid to select the successful bidder.

A contract with automatic renewal clauses that continue unless a notice of termination is issued.

Situation in which a supplier bears the cost and responsibility for placing goods on a dock at the port of destination; the buyer incurs all costs from that point on.

In foreign trade, a quotation or offer that does not include cost of exportation (e.g., transportation costs, export permit fees, export duties).

Situation in which a supplier makes a delivery at the port of origin; the buyer incurs all risks and costs from that point on.