Dictionary of Procurement Terms

Alternative procurement plan that gives guidance to assess, evaluate, and manage the supply base in ways that are consistent with overall entity objectives.

An agent who has limited authority to perform only special tasks for its principal.

A type of procurement, as practicable under the circumstances and initiated by the head of an entity, for an unusual or unique situation. This contract is not awarded based on the application of requirements of Invitation for Bids or Request for Proposals that could be contrary to the public interest or the needs of the entity.

A fund that provides services financed from various specifically designated revenue sources, such as recreation fees used to support a specific recreation activity.

A precise description of the physical characteristics, quality, or desired outcomes of a commodity to be procured that a supplier must be able to produce or deliver in order to be considered for a contract.

The process of collecting, cleansing, classifying, and analyzing expenditure data from all sources within an entity (i.e., purchasing card, eProcurement systems, etc.). The process analyzes the current, past, and forecasted expenditures to enable the visibility of data within the organization at various levels (e.g., by supplier, commodity, service, or by department). See also: Market Analysis, Procurement Profile, Supply Positioning.

A negotiation technique that begins by reaching a minimum agreement, even though it is not related to the objectives, and building bit-by-bit on that first agreement.

Successively breaking up single requirements into smaller ones to stay within small purchase limits and avoid competitive solicitations. Also known as order splitting.