Dictionary of Procurement Terms

Functional descriptions are commonly used for technology-related commodities, and they focus on observations or experiences during system usage (e.g., the program, computer peripherals, or other computers).

An independent legal fiscal entity with assets, liabilities, reserves, a residual balance, equity, and revenues and expenditures for undertaking activities. Funds may be expendable, meaning the authorization for spending expires at the end of the fiscal period; they may also be non-expendable or revolving, meaning that spending beyond the fiscal year is allowed without reauthorization. Governmental funds generally finance the activities most citizens associate with generalpurpose governments, (e.g., police, fire, public works, and procurement). Governmental funds may be subdivided into four categories: general fund, special revenue funds, capital project funds, and debt service funds.

1. For categorization purposes in procurement, moveable items that are not permanently connected to a building (e.g., partitions, shelving, desks, computers, tables, and bookcases). 2. For property law purposes, real property consists of land, facilities, and fixtures. Furniture and equipment are personal property.

A contract term that allows for the buying or selling of a commodity, currency, or security at a fixed price at an undetermined future date as long as the option remains valid.

Contracts for immediate purchase or the sale of something to be delivered at a definite time in the future at a specified price. Used as a hedging device against market price fluctuations or unforeseen supply shortages. See also: Spot Price, Forward (Supply) Contract.