Dictionary of Procurement Terms

One of the three identified functions of a procurement department. This includes issuing invitations for bids, requests for proposals, and contracts with suppliers to obtain the necessary materials and services in support of entity operations. See also: Service Function, Staff Function.

An item of supply or service, specified in an invitation for bids or request for proposals, for which the bidder or proposer must offer a separate price.

Fixed budgets with monies appropriated for a particular period, usually one year, that can be tied to a specific project or item and cannot be used for other purposes.

A defined, maximum amount of money that a borrower may access as needed and repay immediately or over time with interest.

Damages (usually in the form of money) to be paid by a party who breaches all or part of a contract with another party. The amount of damages is agreed upon by all parties to a contract. These damages may be applied on a daily basis for as long as the breach is in effect, but they may not be imposed as an arbitrary penalty. The key to establishing liquidated damages is reasonableness; it is incumbent upon the buyer to demonstrate, through quantifiable means, that damages did occur. See also: Penalty Charge, Damages.

The current published price for a good or service. See also: Administered Price.

An automatic mailing list server targeting a specified group. When email is addressed to a LISTSERV mailing list, it automatically broadcasts to everyone on the list.

e party to a contract bringing suit against the other party in a court of law. See also: Alternative Dispute Resolution (ADR).

A theoretical income wage that will allow a worker, or a worker and their family, to afford basic necessities (e.g., food and shelter).

See Tie Bid Preference, Buy Local, Preference.