Dictionary of Procurement Terms

An increase in the average prices of goods and services, usually measured incrementally over a given time period. (Schiller 2000) See also: Deflation.

A competitive bid, price quotation, or proposal for supplies or services that is conveyed via letter, fax, email, or other manner that does not require a formal sealed bid or proposal, public opening, or other formalities. Generally relegated to requirements that may be considered low value or fall under a stipulated price/cost threshold.

Defect or minor noncompliance in a bid that is merely a matter of form and not of substance. May also pertain to some immaterial or inconsequential defect or variation from the exact requirement of the Invitation for Bids. A defect that does not affect price, quantity, quality, or delivery, or the correction or waiver of such defect would not be prejudicial to other bidders.

The use of computers or telecommunications to transmit, manipulate, store, or retrieve information or data.

The basic organizational and physical facilities and structures for the operation of an entity or business.

Authority based on an entity’s sovereignty to enter into contracts, although not explicitly authorized. See also: Express Authority.

A nebulous term that has been defined as a governmental function or service which is so intimately related to the public interest as to mandate performance by government employees. This function includes those activities that require either the exercise of discretion in applying governmental authority or the making of value judgments in making decisions for the government.

A method of training typically provided to new employees to familiarize them with a body of knowledge, including entity policies and procedures, that they will be required to understand to perform the duties of their position.

The inability to pay debts when they are due.

Moving an outsourced business operation in house. See also: Outsourcing, Contracting Out.