Dictionary of Procurement Terms

A calculated measure of the dispersion or variation of a set of values from its mean value.

A comprehensive code classifying all business by what is produced or sold, for whom it is produced, and to whom it is sold.

The economic worth of a good or service, conveyed by pricing.

A specification that is to be used for all or most purchases of an item; describes all required physical and functional characteristics of goods, services, or construction.

The policy or practice of identifying a specific or group of goods or services with set specifications to be procured by an entity or through an agreement with other entities (e.g., fleet vehicles).

The process of establishing a single specification for an item or range of items.

Generally, an internal committee consisting of cross-functional representation including procurement, end users, and other internal stakeholders impacted by the decisions of the committee. Examples of key functions and activities include: 1) developing standards through a simplification process for designated products and services, 2) establishing specifications, 3) reviewing items to determine which should be incorporated into a standards program, and 4) approving products for a qualified products list.

Normally associated with judicial actions, the legal right of a person, company, or other legal entity to initiate a lawsuit by demonstrating to the court sufficient harm to a legally protected interest to support that party’s participation in the case. For example, the ABA Model Procurement Code generally limits judicial standing in bid protest litigation to potential or actual contractors. See also: Interested Party.

An offer from a supplier to provide goods or services when needed under a pre-arranged set of terms, conditions, and prices.

An order similar to a blanket order, except with specified quantities and delivery dates. See also: Blanket Order.