Dictionary of Procurement Terms

A bid that binds a bidder until a specified time of expiration.

A contract that provides for a price that cannot change during the contract period.

A valuation and assetmanagement method in which goods acquired or produced first are used, sold, or disposed of first. See also: Last In-First Out.

A term usually used in the purchase of custom-made goods (design specification). A qualitative method by which the supplier must provide a final production item for the purchaser’s review and approval before the balance of the production run is made and shipped by the supplier. Also known as First-Article Testing.

The means by which a government adjusts tax rates and spending levels to influence the country's economy.

Tax hikes or spending cuts intended to reduce aggregate demand. (Schiller 2000)

Policy measures that a government takes to reduce taxes or regulations, or to increase government spending to encourage and boost economic activity.

The 12-month period used for accounting purposes. A fiscal year generally begins July 1 or October 1 for governments. (The U.S. federal government’s fiscal year begins October 1.)

Physical, functional, and performance characteristics or specifications that uniquely identify a component or device and determine its interchangeability in a system or piece of equipment; used especially when considering the suitability of a suggested alternate or “equivalent.”