Dictionary of Procurement Terms

A business or person involved in the sale of goods or services in relatively small quantities for consumption or use, but not for resale. See also: Wholesaler.

A percentage of funds due to a contractor that are withheld until the work has been satisfactorily completed and all subcontractors are paid. Normally used in construction contracts. See also: Hold Back.

To withhold a certain percentage of the payment due to the contractor until the work is completed and accepted. The contractual terms (contained within the Invitation for Bids/Request for Proposals will stipulate the amount to be retained as well as the time period of the retention.

Techniques used to prepare the employee for revisions in current processes and procedures or to reinforce existing skills and abilities.

A calculation used to determine the amount of return on an entity's proposed investment or assets relative to the value of that investment or asset.

A type of municipal bond funded by profits made from a project (e.g., a stadium, toll bridge, or hospital).

A contract with the primary purpose of generating revenue or creating a business opportunity for an organization. This type of contract may also serve a specific need, such as operating an organization-owned golf course or tennis center.

An online auction in which sellers bid against one another to win a buyer's business. Typically used to purchase commodities from multiple pre-qualified providers. Also referred to as “eAuction.”

An event that offers businesses, suppliers, and contractors an opportunity to maximize connections with purchasing professionals who source goods and services. The governmental entities are the exhibitors, and the suppliers and contractors may visit and meet to determine needs and procedures when dealing with governmental entities.