Dictionary of Procurement Terms

A contract used to order only the materials or services actually required during a contract term. An indefinite quantity contract for frequently used goods or services. See also: Open-End Contract, Price Agreement, Blanket Order.

The termination or cancellation of a contract to bring all parties, to the degree possible, back to their position before entering into the contract.

A contract with the primary purpose of generating revenue or creating a business opportunity for an organization. This type of contract may also serve a specific need, such as operating an organization-owned golf course or tennis center.

A contract that consolidates agency requirements by pre-establishing a bid opening date and requiring using agencies to submit requirements by a specified time. Also called schedule purchase.

1. An agreement calling for a contractor’s time and effort. 2. The furnishing of labor, time, or effort by a contractor or supplier, which may involve to a lesser degree, the delivery or supply of products.

1. A pre-established document containing certain predetermined terms and conditions. 2. A template contract that may be used for the most basic contractual obligations.

A contract that assigns some of the obligations of a prior contract to another party.

1. Any person or business entity employed to perform part of a contractual obligation under the control of the principal contractor. 2. Any supplier, distributor, or firm that furnishes supplies or services to a prime contractor or another subcontractor.

1. A contract that establishes a source of supply for a specified period for a large group or related family of materials 2. A method of procurement designed to improve the reordering of materials used repeatedly. May include a catalog with a list and description of items that can be purchased. See also: Blanket Order.