Dictionary of Procurement Terms

1. Typically, a quickly crafted document in which exigency requires an immediate binding agreement so work can begin, but time does not permit the development of a definitive contract. 2. An interim contractual agreement.

A type of contract that includes required support-type activity (normally the repetition of small amounts of work) that can be stated only in general terms but is necessary for the delivery of the statement of work.

A decision to contract with a specified supplier over an extended period of time.

A procurement contract that extends for longer than one year.

A contract that sets forth the general provisions of supplies and services that may be delivered or performed within a given period of time, but in which quantity and/or duration is not specified (quantity and delivery are specified with the placement of orders). See also: Price Agreement, Requirements Contract, Blanket Order.

A results-oriented contracting method that focuses on the outputs, quality, or outcomes that may tie at least a portion of a contractor’s payment, contract extensions, or contract renewals to the achievement of specific, measurable performance standards and requirements. These contracts may include monetary and non-monetary incentives as well as specific remedies.

An audit or survey performed before a contract is awarded to determine the supplier’s or contractor’s technical, managerial, and financial ability to perform under the proposed contract, as well as the establishment of and compliance with appropriate procurement system procedures.

A contract entered into by a public entity with a business entity for the purpose of obtaining supplies, services, or construction items of any kind.

The business entity that has entered into a contract with a jurisdiction.

The direct contractual relationship between the parties to a contract that allows either party to enforce contractual rights against the other and seek remedy if appropriate.