Dictionary of Procurement Terms

A meeting convened with potential offerors to discuss a solicitation's technical, operational, and performance specifications, or the full extent of financial, security, and other contractual obligations before the solicitation closes.

1. The ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period. 2. A tangible item purchased or consumed by an entity.

The quantity of goods available for sale at a given price and the level of consumer need for those goods at a given price. The balance of supply and demand fluctuates as external economic factors—such as the cost of materials and the level of competition in the marketplace— influence the level of demand from consumers and the desire and ability of producers to supply the goods. (Business 2002)

A linear description of an organization’s supply function—which includes all internal functions plus external suppliers who are connected with one another—to identify and satisfy the need for materials, equipment, and services. The “chain” may begin with raw materials extracted from the earth and include extractors, converters, original equipment manufacturers, distributors, and, finally, the end user (customer). (Burt, Dobler, and Starling 2003)

1. The actions and values responsible for continuous improvement of the design, development, and management process of an organization’s supply system, with the objective of improving its profitability and the survival of its customers and suppliers. SCM has a major impact on net income and shareholder value. (Burt, Dobler, and Starling 2003) 2. The identification, acquisition, access, positioning, and management of resources an organization needs to attain its strategic objective. (ISM 2000) See Also: Materiel Management.

An approach that focuses on processes that prevent or minimize pollution from being created throughout the supply chain. (Burt, Dobler, and Starling, 2003)

Flexible virtual supply system linked together by communication systems and alliances to optimize the flow of materials, services, information, and money.

An analysis of the complexity of the supply marketplace and its impact on agency service delivery based on factors such as: 1) dependency of agency service delivery upon particular goods and service, 2) risk to agency service delivery arising from potential disruption, such as discontinuity of supply or significant increase in price, 3) the makeup of the marketplace, 4) lead times and the complexity of the technology involved, 5) and the source of the original manufacture or service supply and any related opportunities. See also: Market Analysis, Procurement Profile, Spend Analysis.

The use of tax incentives, deregulation, and other mechanisms to increase the ability and willingness to produce goods and services. (Schiller 2000)

A pledge or guarantee by an insurance company, bank, individual, or corporation on behalf of the bidder/proposer that protects against default or failure of the contracted bidder/proposer to satisfy the contractual obligations.