Dictionary of Procurement Terms

A term used when specifications or terms and conditions limit competition arbitrarily, without reasonably promoting the fulfillment of the procurement needs of a contracting authority.

An offer submitted by a contractor/supplier or consultant in the absence of a bid or solicitation from a buyer. May be submitted in response to a perceived need but not in response to a buyer’s formal request.

Market that exhibits short-term fluctuations. Oil, minerals, agricultural products, and animal by-products typically dominate this type of market. The supply of these raw materials is frequently influenced by political forces, weather conditions, speculative financial actions, and other unpredictable reasons not governed by the laws of supply and demand.

A supplier whose bid was not accepted for reasons of price, quantity, or failure to comply with specifications.

To improve the functionality or increase the value of equipment or services.

The quantity of an inventory item consumed over a period of time expressed in units of quantity or of value in dollars.

A tax imposed on a user of goods.