Dictionary of Procurement Terms

An agreement between a buyer and a seller or between departments within an entity that defines the level and quality of service that is to be provided.

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.

Any contract, addendum, or modification accomplished by the mutual action of both parties to the contract.

An agreement between countries to limit exports or imports to a mutually agreed upon number for a specific good.

A World Trade Organization agreement that replaced the General Agreement on Tariffs and Trade (GATT) in 1996. It regulates the procurement of goods and services by public bodies and reduces trade barriers among member nations.