Dictionary of Procurement Terms

The amount of an item to be delivered by the contractor to the end users under a blanket order as authorized or arranged for by the procurement department. May also be referred to as a sub-order release.

A refund of money paid (e.g., a refund of customs duties paid on imported material if the material is later exported).

A charge for hauling something between various locations by a transportation company.

A shipment made directly from a manufacturer or direct provider of goods to a buyer or purchaser in response to a request by the supplier who has received an order but does not carry the merchandise in its inventory.

The reasonable caution and care performed before finalizing a procurement or taking action in the course of managing an entity business project to demonstrate transparency and mitigate risk.

The legal principle of fair treatment that states that a citizen cannot be denied life, property, or liberty, and a business cannot be treated arbitrarily or unfairly without the appropriate safeguards and legal procedures contained in the Fifth and Fourteenth Amendments to the U.S. Constitution.

An action that occurs when a business or country exports a large quantity of goods at a lower price in a foreign market rather than the price paid in a home market.

A category of consumer goods that do not wear out quickly, typically lasting for three years or more.

A public auctioning structure in which the initial price is in excess of the amount buyers are expected to be willing to pay. The price is then lowered in steps until a buyer is found who is willing to pay the current price offered.

Imported or exported good upon which duties are to be imposed.