Dictionary of Procurement Terms

1. A manufacturing or service delivery process that incorporates tools and methodologies to provide assurance that the standards criteria specified will be delivered to the customer. 2. The processes an entity uses to maintain its established standards.

A recognized level of quality or excellence that must be met to qualify for certification from a certifying body.

A measurement capable of being expressed as a quantity or a number of things. For example: The terms and conditions of this contract require the awardees to deliver three complete compressor units per day.

The collection and analysis of numerical data (e.g., demographic or financial data and statistical results).

The total amount of a good or service needed (demanded) by customers at a set price over a specific period of time.

A reduction in the unit price offered for a large volume contract. Economies of scale would dictate that the larger the volume/quantity, the lower the unit price or total cost. See also: Volume Discount, Volume Leveraging, Economies of Scale.

Material owned by the entity that is immediately and physically available for use by the entity and has not otherwise been specifically allocated or reserved for others.

The amount of a product producers will produce and sell at a specific price. Consumer demand influences producer production and pricing.

Possessing a partially legislative character by having the right to make regulations and rules that carry the force of law.

A corporation owned and run by a government (e.g., telephone companies, oil and gas, water authorities, and electric light companies).