Dictionary of Procurement Terms

1. In absolute terms, quality is a function of excellence, intrinsic value, or grade, as determined over time by society in general or by designated bodies in specialized fields. 2. The composite of all attributes or characteristics, including performance, that satisfy a user’s needs. 3. Conformance with the stated requirements.

1. Assurance that quality performance criteria contained within the contract is provided during contract delivery. 2. A contract administration process that assures technical performance that conforms to the quality performance criteria. 3. Specific to technology, a planned and systematic pattern of all actions necessary to provide adequate confidence that the product optimally fulfills customers’ expectations. When a new technology product is introduced, it may involve an alpha and beta testing. Faults are identified and fixed before the product is released commercially. See also: Monitoring.

A small cross-functional group of employees whose mission is to validate and improve processes, procedures, or policies, typically through planning, observation, and inspection.

1. A manufacturing or service delivery process that incorporates tools and methodologies to provide assurance that the standards criteria specified will be delivered to the customer. 2. The processes an entity uses to maintain its established standards.

A recognized level of quality or excellence that must be met to qualify for certification from a certifying body.

A measurement capable of being expressed as a quantity or a number of things. For example: The terms and conditions of this contract require the awardees to deliver three complete compressor units per day.

The collection and analysis of numerical data (e.g., demographic or financial data and statistical results).

The total amount of a good or service needed (demanded) by customers at a set price over a specific period of time.

A reduction in the unit price offered for a large volume contract. Economies of scale would dictate that the larger the volume/quantity, the lower the unit price or total cost. See also: Volume Discount, Volume Leveraging, Economies of Scale.

Material owned by the entity that is immediately and physically available for use by the entity and has not otherwise been specifically allocated or reserved for others.