A precise description of the
physical characteristics, quality, or desired
outcomes of a commodity to be procured that
a supplier must be able to produce or deliver
in order to be considered for a contract.
The process of collecting,
cleansing, classifying, and analyzing
expenditure data from all sources within an
entity (i.e., purchasing card, eProcurement
systems, etc.). The process analyzes the
current, past, and forecasted expenditures to
enable the visibility of data within the
organization at various levels (e.g., by
supplier, commodity, service, or by
department). See also: Market Analysis,
Procurement Profile, Supply Positioning.
A negotiation technique
that begins by reaching a minimum
agreement, even though it is not related to
the objectives, and building bit-by-bit on that
Successively breaking up
single requirements into smaller ones to stay
within small purchase limits and avoid
competitive solicitations. Also known as order
The current marketplace price for an
immediate purchase of a good or service. See
also: Forward (Supply) Contract.
A one-time purchase occasioned
by a small requirement, an unusual or
emergency circumstance, or a favorable
A procurement department's
provision of specialized advice and expertise
to staff in line positions. Staff functions can
include other departments, such as human
resources, maintenance, legal, accounting,
and public relations. See also: Line Function,
Any entity, group, or individual that
can place a claim on an entity’s resources or
services or is affected by what the entity does
or the services it provides.
A level of quality or attainment.
1. A pre-established document containing
certain predetermined terms and conditions.
2. A template contract that may be used for the
most basic contractual obligations.