Dictionary of Procurement Terms

CANADIAN An approval based on reliable and up-to-date cost estimates that gives authority to proceed with or complete a project when there is already a preliminary approval; this approval authorizes spending all project funds based on a specific budget in constant and current (budget-year) dollars.

The individual in charge of planning and executing a particular project.

A contract law doctrine that protects a promisee against the promisor by allowing the promisee to recover damages incurred as the result of the promisee's detrimental reliance on a promise.

An unconditional written promise to pay a certain sum in money, on demand, or at a fixed or determinable future date, either to the bearer or to the order of a designated person.

A law that requires government procurement offices to pay federal contractors supplying goods and services on time and within agreed-upon payment terms. Many states and local governments have enacted similar laws.

A reduction in cost offered by the supplier in exchange for early/accelerated payment by the customer. See also: Payment Terms, Cash Discount, Discount.

An offer to provide goods or services. A proposal may or may not be in response to a Request for Proposals issued by an entity.

An individual or supplier who submits a proposal that may or may not be in response to a Request for Proposals. See also: Offeror, Responder, Bidder.

An item produced and marketed by a person or company who has the exclusive right to manufacturer and sell it. May result from a trade secret or patent.

Information that has commercial value owned by an individual or business through a legal, exclusive right (e.g., patent, copyright, trademark) or that is not subject to disclosure or generally known by the public or to industry competitors. See also: Trade Secret, Confidential Information.