Dictionary of Procurement Terms

A contractor delegated with the entire responsibility and risk for the day-to-day management and contract performance of a construction project designed by a third party.

Contract containing both goods and services.

A contract that provides for a reward to the contractor for reaching or exceeding a pre-determined level of performance or cost-reduction goals, or for producing results that exceed the requirements stated in the contract.

A type of contract in which the time of delivery is unspecified in the original contract, but rather is determined by the procurement professional during contract performance.

A type of contract that provides for the delivery of indefinite quantities—within stated limits—of supplies or services. These supplies or services are to be furnished during a fixed period, with deliveries or performance to be scheduled by placing orders with the contractor.

A worker hired by a business or public entity to accomplish a given result who has the right to control or direct their own work as to the details and means by which the desired results are achieved.

An agreement made between government entities in which one entity agrees to deliver goods or services to the other, or to cooperate with or contribute to one another's efforts. See also: Shared Services.

A maximum dollar value or a fixed-term construction contract resulting from a competitively bid solicitation in which the contractor will perform according to separate job orders issued during the term of the contract. Prices for each job order are based on a unit price book (UPB).

A variation of the time and materials (T&M) contract, differing only in that materials are not supplied by the contractor. This contract provides for the procurement of services on the basis of direct labor hours at specified fixed hourly rates. It is generally used when it is not possible to estimate the extent or duration of the required work. See also: Time and Materials Contract (T&M).