Dictionary of Procurement Terms

The individual in charge of planning and executing a particular project.

A contract law doctrine that protects a promisee against the promisor by allowing the promisee to recover damages incurred as the result of the promisee's detrimental reliance on a promise.

An unconditional written promise to pay a certain sum in money, on demand, or at a fixed or determinable future date, either to the bearer or to the order of a designated person.

A law that requires government procurement offices to pay federal contractors supplying goods and services on time and within agreed-upon payment terms. Many states and local governments have enacted similar laws.

A reduction in cost offered by the supplier in exchange for early/accelerated payment by the customer. See also: Payment Terms, Cash Discount, Discount.

An offer to provide goods or services. A proposal may or may not be in response to a Request for Proposals issued by an entity.

An individual or supplier who submits a proposal that may or may not be in response to a Request for Proposals. See also: Offeror, Responder, Bidder.

An item produced and marketed by a person or company who has the exclusive right to manufacturer and sell it. May result from a trade secret or patent.

Information that has commercial value owned by an individual or business through a legal, exclusive right (e.g., patent, copyright, trademark) or that is not subject to disclosure or generally known by the public or to industry competitors. See also: Trade Secret, Confidential Information.

Fund used to account for grouped activities that receives significant revenue from fees and charges for those activities. An enterprise fund charges external end users, while an internal services fund is paid by internal entity employees. See also: Internal Service Fund, Enterprise Fund.