Dictionary of Procurement Terms

A process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment.

An audit conducted to determine the degree of management efficiency and effectiveness.

The purchase of an existing business by an individual manager or management group from within the business. (Business 2002)

A technique used to measure progress or control procurement activities based on collected data. These reports enable both procurement officials and managers to assess progress and readjust activities to accomplish the goals and objectives of the organization.

Obligatory, required by order; a provision that may not be waived.

A condition that may apply to Request for Proposals (RFP) and Invitation for Bids (IFB) that is established in the scope of work/specifications that must be met without alteration. A mandatory requirement should be clearly identified. Not meeting a mandatory requirement may be grounds for the disqualification of a bid or proposal.

A document that lists all the items in a shipment for the use of officials (e.g., customs; bill of lading).

A person or business entity that creates, makes, processes, or fabricates a product or something of value that changes a raw material or commodity from one form to another or creates a new product or commodity. (Business 2002)

A price list published in some form by the manufacturer and available to and recognized by the trade. The term does not include a price list prepared especially for a given offer.

1. A group of individuals who have a collective need, purchasing power, and the desire and authority to spend money on goods, services, and ideas. 2. A setting in which buyers and sellers establish prices for identical or very similar products and exchange goods and/or services. 3. The aggregate forces (including economics) at work in trade and commerce in a specific service or commodity.