Dictionary of Procurement Terms

1. Final goods produced for use in the production of other goods (e.g., equipment, buildings). 2. Wealth in the form of money or property. 3. All buildings, equipment, and human skills used to produce goods and services. (Schiller 2000)

An asset with a lifecycle of more than one year with a value of more than a certain prescribed limit set by accounting standards or by governmental policy.

A financial document that projects an entity's cost for future major assets and the entity's long-term financing needs.

Durable assets listed on an entity's accounting records that have value and can usually be depreciated.

A multi-year plan that forecasts spending for anticipated capital projects and equipment purchases. Also called Capital Improvement Program.

CANADA A lease that transfers all the substantial benefits and risks incident to ownership of property to the lessee.

Monies used to acquire major assets with a useful life of more than one year that may be financed by some form of long-term debt.

A change that is beyond the scope of the contract, and thus cannot be ordered by the contracting officer under the contract’s change clause.

To give plain meaning to contract terms unless the entity or legislation has assigned a special meaning to the term.

Goods conveyed in a vehicle, ship, train, or aircraft.