Dictionary of Procurement Terms

Different levels of governments may, when it is advantageous for them to do so, provide goods and services to one another.

A provision of Section 8 of the Clayton Antitrust Act that prohibits corporations from reducing competition by having the same directors or officers. Sometimes called interlocking agreements. See also: Clayton Act (The Clayton Anti-Trust Act) (US Law).

Raw or processed materials, or component pieces, that are purchased and used to manufacture a final finished product. Sometimes called Industrial Good.

The use of two or more modes of freight (e.g., truck to rail).

An efficiency measure of return promised by an investment project over its useful life; it is sometimes referred to simply as yield on a given project. The internal rate of return is determined by finding the discount rate that equates the present value of a project's cash outflow with the present value of its cash inflow. In other words, the internal rate of return is the discount rate that will cause the net present value of a project to be equal to zero.

A rebuild/remanufacture process the extent and cost of which cannot be determined until the item is disassembled and evaluated. By definition, an internal repair must contain labor and parts.

A type of proprietary fund that accounts for the financing of goods or services provided by one department or entity to other department or entity units or to other, separate entities on a cost-reimbursement basis (e.g., central warehousing, central data processing, and central printing and duplicating). See also: Proprietary Fund, Enterprise Fund.

Terms published by the International Chamber of Commerce (ICC) that are globally recognized terms for moving goods internationally. These terms define the responsibilities of and risks to both the buyer and seller, including while the merchandise is in transit. Incoterms apply to goods that cross national borders.

An organization of 190 member countries with the purpose of facilitating international trade, securing financial stability, promoting employment and economic growth, fostering global monetary cooperation, and reducing poverty worldwide.

An international nongovernmental organization composed of representatives from assorted national standards organizations that encourage the international trade of goods and services through the development and promotion of standards, testing, and certification.