Dictionary of Procurement Terms

An understanding between two or more parties in which they state a common understanding and intention regarding past or future intentions or facts, sometimes with a view to altering performance, rights, and obligations. When the additional elements of a contract are satisfied, e.g., mutual obligation (consideration), capacity, definiteness, and legal purpose, contracts may be formed. The terms “agreement” and “contracts” are sometimes used interchangeably. (An agreement, however, may not be legally enforceable unless it contains all of the elements of a legal contract, so the terms are not truly synonymous.) See also: As to Form.

1. Freight transported by air. 2. The rate charged for air transportation.

An indirect air carrier that is responsible for the transport of property from the point of receipt to the point of destination, using for the whole or any part of such transportation the services of a direct air carrier or its agent, or of another air freight forwarder. (U.S. FAR 2005)

Documented proof between the shipper and the carrier of the contract of carriage.

A corporation organized and registered according to the laws of another country but with operations in the domestic country. Contrast with "Foreign Corporation."

A bid submitted for several different items, services, etc., in which the bidder states they will not accept a partial award, but will accept an award for all items, services, etc. included in the Invitation for Bids. Because the bidder has qualified their bid, it may be deemed non-responsive.

A cost that is specifically related to the contract and can be assigned or charged as an item of cost in accordance with the terms of the contract and applicable laws and regulations.

1. The action or process of sharing or distributing something. 2. The amount of a resource assigned to a particular category or recipient.

To divide an appropriation into amounts that may be encumbered or expended during an allotment period.