Dictionary of Procurement Terms

A five-stage process to develop high-performing teams, created by Bruce Tuckman, an educational psychologist. The five stages are: forming, storming, norming, performing, and adjourning.

Professor Robert Trent of Lehigh University identified ten requirements for effective team leadership: 1) work with the team to establish and commit to performance goals, 2) secure individual member involvement and commitment, 3) manage internal team conflict, 4) help maintain team focus and direction, 5) secure required organizational resources, 6) prevent team domination by a member or faction, 7) deal with internal and external obstacles confronting the team, 8) clarify and help define each member’s role, 9) provide performance feedback to team members, and 10) coordinate multiple tasks and manage the status of team assignments.

A response to a solicitation that describes in detail what an offeror proposes to do, furnish, and the method of delivery with no mention of price. May be part of a two-step response contained within an offer, the second part being the price proposal.

A subset of a design specification that establishes the material and operating requirements of a good.

A bidding process for goods, services, or construction that is open to all qualified bidders and in which sealed bids are opened in public for scrutiny and are chosen on the basis of compliance with the solicitation’s requirements and lowest price. Also referred to as competitive tender or public tender, the terms typically used in Canadian procurement. See also: Solicitation.

A type of contract in which a source of supply is established for a specified period of time for specified goods or services; usually characterized by an estimated or definite minimum quantity, with the possibility of additional requirements beyond the minimum, all at a predetermined unit price.

1. A contract clause, which may be contained within boilerplate language, that allows for a contract to be ended at the discretion of a government entity. 2. Action by which a purchasing entity, in accordance with contract provisions, unilaterally cancels all or part of the contract work for the best interest of the entity, and with no reflection on the contractor’s performance. See also: Termination for Default, Cancellation of a Contract.

A contract clause that may be contained within boilerplate language that allows either contracting party the right to cancel a contract, either in whole or in part, as a result of the failure of the other party to perform satisfactorily. See also: Termination for Convenience, Cancellation of a Contract.

Stipulations made in contracts.

The methods of payment stipulated in a sales or purchasing contract.