Dictionary of Procurement Terms

Output per unit of input (e.g., output per labor hour). (Business 2002)

A service rendered by member(s) of a recognized profession or possessing a special skill. Such service is generally acquired to obtain information, advice, training, or direct assistance. See also: Nonprofessional Service.

1. The difference between total revenue and total cost. (P=TR-TC). The difference between total revenues and the full costs involved in producing or selling a good or service; a return for risk taking. 2. The difference between what it cost to make and sell a product and its final selling price. 3. The difference between the costs incurred by a contractor to provide the supplies, services, or construction and the amount received from the purchaser in payment.

A percentage that indicates how many cents of profit the business has generated for each dollar of sale.

Budgets that relate expenditures and revenues to public goals.

A tool, method, or technique used in project management to estimate the shortest, most likely, and longest possible times for each project activity or task and its associated dependencies.

A timed sequence of payments made in response to the invoices submitted by a contractor during the course of performing the contract. Progress payments shift risk to the public entity, as payment for progress made does not guarantee the completion of all work. See also: Partial Payment, Advance Payments.

A report prepared by a contractor during the performance of a contract; a useful means of assessing the routine progress of a contractor in selected areas of work.

The award of a definite quantity contract under the same solicitation to two or more suppliers or contractors to furnish the same or similar supplies or services when more than one supplier is needed to meet the contract requirements for quantity, delivery, or service.

An article that will not be handled, as listed in the transportation carrier’s tariffs.