Dictionary of Procurement Terms

Deliberation, discussion, or conference to change or amend the terms of an existing contract.

Payment for the use of a good or property during a defined time period.

A system that relies on estimated usage rates and lead time to schedule orders for delivery to maintain supply chain efficiency and avoid stock outages.

A provisional or final judicial order allowing a rightful owner to reclaim property that has been taken by the other party to a dispute.

Report showing the items received from a supplier when an order is incomplete or has items backordered.

1. Rejection on the grounds of being unauthorized or having no binding force. 2. Disputing the validity of a contract and refusing to honor its terms.

A document generated prior to an authorized procurement in order to request feedback from the contracting community or potential proposers/bidders; to seek information about a product or service in order to assist in the finalization of technical specifications, design specifications, or a statement of work. See Also: Request for Information (RFI)

Changes to a contract may require additional work and expense on behalf of a contractor. Change work, either directed by formal contract modification or through constructive change, entitles the contractor to seek an equitable adjustment. The contractor must prove that it is entitled to an equitable adjustment. The contract must contain language specifying the conditions under which an REA will be considered.

A document issued by the buyer during the very early stages of the procurement planning process to provide potential suppliers with an avenue to register their interest in being involved in a particular project or performing a particular job. An EOI may also be used to seek industry input into scope of work requirements that will then become part of a formal solicitation, or to find other contractors who could provide the goods or services. See also: Request for Information (RFI).

A non-binding method whereby a jurisdiction publishes via newspaper, internet, or direct mail its need for input from interested parties for an upcoming solicitation. See also: Request for Comments (RFC).