Dictionary of Procurement Terms

Model in which an entity contracts with a person, group, or company to run a portion of a government-owned facility. See also: Public-Private Partnership (P3).

A form of negotiation used in Alternative Dispute Resolution (ADR) that uses a third party or conciliator to build a positive relationship between the parties to a dispute.

A sale made with the understanding that a title will not pass from the supplier to the purchaser until some prerequisite condition has been met, although possession may be surrendered to the buyer.

Information in any form (tangible or intangible) that is proprietary or confidential and, therefore, not known by or released to the general public. See also: Proprietary (Information), Trade Secret.

A purchase order issued after the fact restating the same terms originally placed orally, or by some other informal means.

A situation that gives a person, while acting in their official capacity, the opportunity through actions or decisions to direct or influence an outcome for personal benefit.

A process leading to the resolution of a contractual conflict or opposition, such as a public entity’s policy to attempt to resolve by mutual agreement all contractual issues in a controversy (e.g., factfinding, negotiation, facilitation, mini-trials, mediation, or arbitration).

Indirect expense or loss incurred, not because of one party's breach of contract, but as an end result of the breach (e.g., lost profits, attorneys' fees).

An ethical decision-making model that calls attention to all stakeholders and requires the decision-maker to predict the likely results of an act and weigh the good it will produce against the harm it will cause.

1. Something of value that is exchanged between two parties and serves to form or bind a contract. 2. A mutual commitment that must exist to form an express contract. 3. That which is given or promised to bring a binding contract into existence.