Labor Surplus Area (LSA)
A civil jurisdiction that
has a civilian average annual unemployment
rate during the previous two calendar years of
20% 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 states
on the LSA list to identify where procurement
set asides should be used to strengthen the
national 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)
A variation of the time and
materials (T&M) contract, differing only in that
materials are not supplied by the contractor.
This contract provides for the procurement of
services on the basis of direct labor hours at
specified fixed hourly rates. It is generally
used when it is not possible to estimate the
extent or duration of the required work. See
also: Time and Materials Contract (T&M).
A reactive financial
measurement—such as sales or revenue—that
indicates economic shifts that have already
occurred in the general economy. See also:
Landed Item Cost
The total external item-related
costs incurred by an entity when obtaining an
item from a supplier, most commonly
associated with international shipping. Usually
refers to the cost of shipping, plus applicable
duties, taxes, and fees.
Last In-First Out (LIFO)
A warehousing inventory
term used to indicate that the latest received
materials are to be used first, and the
materials received earlier are to be left on
hand. See also: First In, First Out.
An offer (including a withdrawal or
modification) that is received at the
designated place for receipt after the
established due date and time.
A defect that is not detectable by
initial customary or reasonable inspection
upon delivery. See also: Defect.
Law of Agency
The Law of Agency states that an
agent is someone who acts on behalf of a
principal. It is 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 the
principal and agent, and 2) by law. See also:
Principal, Buyer, Agent.
Law of Demand
An economic principle stating
that if all other factors are constant, price and
demand for a good or service are inversely
related. As price increases, demand falls, and
as price decreases, demand increases.
Law of Supply
An economic principle stating that
if all other factors are constant, price and
supply for a good or service are directly
related. As supply increases, price decreases,
and as supply decreases, price increases.