Dictionary of Procurement Terms

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Search Results: 1-10 of 88 results for “L”
  • Labor Force

    All persons over the age of 16 who are either working for pay or actively seeking paid employment. (Schiller, 2000)
  • Labor Surplus Area

    A civil jurisdiction that has a civilian average annual unemployment rate during the previous two calendar years of 20 percent or more above the average annual civilian unemployment rate for all states (including Puerto Rico) during the same 24-month reference period. The Administrator for Federal Procurement Policy uses the LSA list to identify where procurement set asides should be emphasized to strengthen our nation's economy; The Small Business Administration uses the LSA list for bid selections for small business awards in Historically Underutilized Business Zones (HUBZones). (United States Department of Labor, Employment and Training Administration, Office of Adult Services, Labor Surplus Area online)
  • Labor-Hour Contract

    A variation of the time and materials (T&M) contract differing only in that materials are not supplied by the contractor. Provides for the acquisition of services on the basis of direct labor hours at specified fixed hourly rates; is generally used when it is not possible to estimate the extent or duration of required work.
  • Lagging Indicator

    A measure of economic activity that tends to change after the state of the general economy has changed. (ISM, 2000)
  • Laissez Faire

    A French phrase meaning “let it be.” An economic doctrine that opposes government involvement in business and commerce. The philosophy of “leave the economy alone,” of non-intervention by government in the market mechanism. (Schiller, 2000)
  • Landed Item Cost

    The total external item-related costs incurred by the purchaser in obtaining an item from the supplier; i.e., sum of the individual directly-related costs such as the expenses (if any), taxes, custom duty fees, etc. This is especially helpful to the agency in determining its total cost to procure that specific item. It does not include any internal agency costs such as salary and overhead expenses.
  • Last In-First Out (LIFO)

    A warehousing inventory term used to indicate that the latest acquired materials are assumed to be physically used first and the remaining materials acquired earlier in date time are assumed to be still on hand in inventory. The LIFO methodology does not rotate inventory therefore it tends to result in aged and outdated materials remaining in inventory; An accounting technique where the highest price is selected from a range of prices that have been paid for the item over a period of time, thus lowering the average cost per unit remaining in inventory while simultaneously increasing the cost of goods sold. The LIFO accounting technique tends to be more popular during inflationary periods, especially in private sector organizations, because of tax considerations.
  • Late Bid/Proposal

    A bid, proposal, withdrawal, or modification received at the designated place for receipt after the established due date and time. Procurement policies should be established to provide guidance regarding how late bids/proposals are handled administratively. In most public entities, late bids/proposals are not opened and may be returned to the bidder/proposer advising that the bid/proposal was received late (after the due date and time) and cannot be accepted.
  • Latent Defect

    A defect, deficiency, or imperfection that is not detected or discovered using generally accepted inspection methods. A defect that surfaces after final acceptance. It is not concealed damage. (NASPO, 2001)
  • Law of Agency

    The Law of Agency states that an agent is someone who acts on behalf of a principal. A product of common law that focuses not only on the creation of agent relationships but also the liability for losses suffered by others who deal with agents. There are two ways to create an agency relationship: 1. By agreement between principal and agent or 2. By law.
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