Dictionary of Procurement Terms

A written notification from a public entity to a successful bidder or proposer stating that a contract has been awarded to them in accordance with a bid or proposal they previously submitted. Effective with receipt, the supplier or contractor shall proceed with performance. This allows work to start while the contract is printed and readied for distribution.

Public notice issued to announce an action an entity intends to take with a certain supplier or service provider.

A written notice publicly posted prior to announcing the award of a contract to notify interested parties of the intended award and signal that the procurement file is available for their review. The notice also signals that the time period for protests to be submitted has begun.

A general opportunity available to suppliers to provide specified products or services. Also referred to as a Notice of Bidding Request.

Usually used in construction, an NTP is a notification letter from an entity to a contractor that states the date on which the contractor is to begin work on an awarded project; it also marks the beginning of the performance period as stated in the contract.

An agreement in which one of the parties to a contract accepts the substitution of the second party to the contract with an alternative party. The rights and obligations of the previous party are transferred to the successor party.

A legal document executed by the original parties to a contract and a successor to whom interest in the contract has been transferred by one of the parties; the document transfers all obligations and rights under the contract to the successor.

A specific, measurable, and observable result of an organization’s activity that advances the organization toward its goal.

A legal requirement for the disbursement of funds as a result of orders placed; contracts awarded; supplies, services, or construction received; or other contractual activity.