Dictionary of Procurement Terms

Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 31-40 of 68 results for “L”
  • Lessor

    The party who owns the property in question and grants the lease.
  • Letter Contract

    1. Typically, a quickly crafted document in which exigency requires an immediate binding agreement so work can begin, but time does not permit the development of a definitive contract. 2. An interim contractual agreement.
  • Letter of Credit

    A document from a bank that guarantees payment to a seller, a form of credit insurance when a buyer’s payment ability is not certain. Similar to escrow, banks release funds when buyer and seller conditions are fulfilled. Most often seen in international trade.
  • Letter of Intent (LOI)

    A document stating the preliminary commitment of one party to do business with another party and outlines the main terms of the prospective deal.
  • Level-of-Effort (LOE) Contract

    A type of contract that includes required support-type activity (normally the repetition of small amounts of work) that can be stated only in general terms but is necessary for the delivery of the statement of work.
  • Liability

    An obligation not yet completed or paid for that one party owes to another.
  • License

    A legal instrument that permits or grants permission to do something.
  • Lien

    The claim on property that acts as security until a debt is paid.
  • Life Cycle Cost (LCC)

    1. The total cost of ownership over the lifespan of the asset. 2. An analysis technique that takes into account operating, maintenance, the time value of money, disposal, and other associated costs of ownership as well as the residual value of the item.
  • Life Cycle Management

    Term that includes the four phases of procurement (planning, procurement, in-life-use, and disposal) as well as the associated costs of owning an asset.
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