Dictionary of Procurement Terms

An organizational culture that is characterized by a comprehensive effort to identify and remove waste and thus improve efficiency in all areas, including time, materials, people, money, facilities, quality, schedules, policies, customers, transportation, and logistics.

A contract by which one party (lessor) enters into an agreement with a second party (lessee) for possession and use of property (equipment) or real property (real estate) for a specified period of time at a predetermined cost. There are two primary lease categories: Operating and Financial.

The application of capital budgeting principles to determine if the best value option for an entity is to lease a good/asset or purchase it.

The conveyance, by a lessor to a lessee, of the right to use a tangible asset, usually for a specified period of time in return for rent. At a specified period of time, the lessee may purchase the equipment outright by paying an additional specified sum.

A lease in which the lease payments are applied, in whole or in part, to installment payments for equity or ownership upon completion of the agreement.

Ongoing contractual financial obligations incurred by a business, such as retiree benefits and insurance.

Outdated, sometimes archaic, information technology systems in use well beyond the availability of newer systems.

The limiting effect that an existing ordinance, statue, or law may have on an entity's decision-, or the lack of such an ordinance, statute, or law.

A public notice required by law, ordinance, or executive order. Generally placed in a newspaper of general circulation, or posted on a website, magazine, or other media, depending on the specific legal requirements.