Dictionary of Procurement Terms

A mismatch between the skills that employers require for a job position and the skills an employee or applicant possesses.

The placing of buyer-required radio frequency identification (RFID) tags on cases or pallets just prior to shipment.

An independently owned firm, corporation, or establishment, having a small number of employees, low volume of sales, small amount of assets, and limited impact on the market.

A 1999 law that establishes the U.S. federal government’s responsibility to aid, counsel, assist, and promote the interests of small businesses (as defined by the Small Business Administration), and to place with such businesses a fair proportion of U.S. federal government purchases and contracts for goods and services.

An independent agency of the federal government that offers managerial and financial assistance to small businesses. The SBA mission is to maintain and strengthen the nation’s economy by aiding, counseling, and assisting the interests of small businesses.

A business that is at least 51% owned and controlled by individual(s) who are economically and socially disadvantaged; the business must also meet the definition of a small business as defined by the U.S. Small Business Association. See also: Historically Underutilized Business (HUB), Minority-Owned Business Enterprise (MBE), Woman-Owned Business Enterprise (WBE), Economically Disadvantaged Individuals.

Any procurement not exceeding a given upper monetary limit, as established by law, regulation, executive order, etc. Usually applies to purchases of small dollar amounts under a certain monetary threshold.

A physical card embedded with an integrated microprocessor chip that acts as a security token and is used for financial transactions.