Dictionary of Procurement Terms

A communication with a proposer for the sole purpose of eliminating minor irregularities or apparent clerical mistakes in a proposal. A clarification may be initiated by either the proposer or purchaser and does not give the proposer an opportunity to revise or modify its proposal, except to the extent that the correction of the apparent clerical mistakes results in revision.

The number that identifies a property class that covers relatively homogeneous commodities that are grouped together with respect to their similarity of physical or performance characteristics. The commodities may also be grouped if they are commonly requisitioned, stored, and issued together.

The transportation charge applicable to groups of similar commodities shipped by common carrier if no specific commodity rate or exception has been established. See also: National Motor Freight Classification (NMFC) Guide, Uniform Freight Classification, Commodity Rate.

Part 1 of the NIGP Commodity/Service Code consisting of five digits and containing more than 6,000 item descriptions; used to facilitate the open market aspects of the purchasing function.

For freight, a publication containing a list of items and the classes to which they are assigned for the purpose of applying class freight rates, along with governing rules and regulations.

The process of arranging defects in classes or groupings in accordance with a specific system (e.g., by severity of defect, such as major, critical, or minor).

Contingent monies or considerations previously disbursed that are returned due to nonperformance of the contract or agreement.

A 1914 supplement to the Sherman Antitrust Act that regulates general business practices that may be detrimental to fair competition. Some of the business practices regulated by the Clayton Act are price discrimination, exclusive dealing contracts, mergers and acquisitions, and interlocking directorates. See also: Price Fixing, Sherman Antitrust Act.