Dictionary of Procurement Terms

The current marketplace price for an immediate purchase of a good or service. See also: Forward (Supply) Contract.

A one-time purchase occasioned by a small requirement, an unusual or emergency circumstance, or a favorable market condition.

A procurement department's provision of specialized advice and expertise to staff in line positions. Staff functions can include other departments, such as human resources, maintenance, legal, accounting, and public relations. See also: Line Function, Service Function.

Any entity, group, or individual that can place a claim on an entity’s resources or services or is affected by what the entity does or the services it provides.

A level of quality or attainment.

1. A pre-established document containing certain predetermined terms and conditions. 2. A template contract that may be used for the most basic contractual obligations.

A calculated measure of the dispersion or variation of a set of values from its mean value.

A comprehensive code classifying all business by what is produced or sold, for whom it is produced, and to whom it is sold.

The economic worth of a good or service, conveyed by pricing.

A specification that is to be used for all or most purchases of an item; describes all required physical and functional characteristics of goods, services, or construction.