Dictionary of Procurement Terms

Dictionary of Procurement Terms

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Search Results: 1-10 of 68 results for “L”
  • 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)
  • Labor-Hour Contract

    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).
  • Lagging Indicator

    A reactive financial measurement—such as sales or revenue—that indicates economic shifts that have already occurred in the general economy. See also: Leading Indicator.
  • 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.
  • Late Offer

    An offer (including a withdrawal or modification) that is received at the designated place for receipt after the established due date and time.
  • Latent Defect

    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.
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