Dictionary of Procurement Terms

A supply or stock of assets, such as materials or money, that can be used in production.

A supplier who submits a response to a Request for Qualifications (RFQu), Expression of Interest (EOI), Request for Information (RFI), Qualifications Based Selection (QBS), or other solicitation types, methods, or processes whereby price is not a factor in the evaluation process for award determination. See also: Offeror, Proposer, Bidder.

A supplier with the integrity and reliability as well as the financial and technical capacity to perform the requirements of the solicitation and subsequent contract. See also: Qualified Bidder.

A bid, proposal, or offer that fully conforms in all material respects to the solicitation and all of its requirements, including all form and substance.

Charge imposed by some sellers when accepting a return for what was purchased.

The effect of an act, contract, conspiracy, or combination that eliminates or stifles competition, artificially maintains prices, or otherwise hampers or obstructs the course of trade and commerce as it otherwise would be if left to the control of natural and economic forces.

1. Specifications that unnecessarily exclude a potential bidder or proposer from competing for a procurement. Precludes full and open competition. 2. The effect of an act, contract, conspiracy, or combination that eliminates or stifles competition, artificially maintains prices, or otherwise hampers or obstructs the course of trade and commerce as it would be if left to the control of natural and economic forces.

A business or person involved in the sale of goods or services in relatively small quantities for consumption or use, but not for resale. See also: Wholesaler.

A percentage of funds due to a contractor that are withheld until the work has been satisfactorily completed and all subcontractors are paid. Normally used in construction contracts. See also: Hold Back.

To withhold a certain percentage of the payment due to the contractor until the work is completed and accepted. The contractual terms (contained within the Invitation for Bids/Request for Proposals will stipulate the amount to be retained as well as the time period of the retention.