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: 41-50 of 68 results for “L”
  • Life Expectancy

    The number of years during which an asset is expected to remain in active use.
  • LIFO

  • Limitation of Cost

    A provision that limits the total costs for which a contractor can be reimbursed under the terms of a costreimbursement contract.
  • Limited Warranty

    A written guarantee with respect to a product or service that specifically restricts the conditions under which that guarantee will be honored.
  • Line Function

    One of the three identified functions of a procurement department. This includes issuing invitations for bids, requests for proposals, and contracts with suppliers to obtain the necessary materials and services in support of entity operations. See also: Service Function, Staff Function.
  • Line Item

    An item of supply or service, specified in an invitation for bids or request for proposals, for which the bidder or proposer must offer a separate price.
  • Line Item Budget

    Fixed budgets with monies appropriated for a particular period, usually one year, that can be tied to a specific project or item and cannot be used for other purposes.
  • Line of Credit

    A defined, maximum amount of money that a borrower may access as needed and repay immediately or over time with interest.
  • Liquidated Damages

    Damages (usually in the form of money) to be paid by a party who breaches all or part of a contract with another party. The amount of damages is agreed upon by all parties to a contract. These damages may be applied on a daily basis for as long as the breach is in effect, but they may not be imposed as an arbitrary penalty. The key to establishing liquidated damages is reasonableness; it is incumbent upon the buyer to demonstrate, through quantifiable means, that damages did occur. See also: Penalty Charge, Damages.
  • List Price

    The current published price for a good or service. See also: Administered Price.
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