Dictionary of Procurement Terms

formal, written contract protocol that establishes the approach for planning and managing the interim period between the beginning of a contract and its expiration.

The quality of being open and honest. In ethics, the belief that the more information is disclosed, the better.

A device that responds to and transmits radio waves. May be used in a variety of supply management applications. including smart cards, procurement credit cards, inventory tracking, and radio frequency identification (RFID).

A visual representation that indicates the slope (or trend) in a particular data series (e.g., price).

Refers to the metrics that operationalize success across economic, environmental, and social costs and impacts.

A quantity of freight to which truckload rates apply; indicates full truckload as opposed to LT (Less than Truckload) shipment. Motor carriers will charge less per Cwt if a shipper is moving full truckloads.

A law that established the requirement for certain federal contractors to submit cost or pricing data and certify that, to the best of the contractor’s knowledge and belief, the cost or pricing data submitted is current, accurate, and complete.

In construction procurement, a requirement whereby the contractor is responsible for the entire project, including designing the project, contracting for construction, and furnishing the structure. In technology procurement, one supplier is responsible for the hardware, software, and support. May also apply when a contractor is completely responsible for an entire project from start to finish.

1. Movement (as of goods or people) into, through, and out of a place. 2. A cycle of purchase, sale, and replacement of a stock of goods. (Merriam Webster) 3. The number of times that various assets or items of inventory are replaced during a stated period of time.

An inventory control system in which identical stock is stored in two separate bins, with the stock in the second bin equal to that calculated for the order point. Withdrawals are made from the first bin and a requisition to replenish the supply is generated when that bin is emptied.