Dictionary of Procurement Terms

1. A procurement method that emphasizes value over price. 2. An assessment of the return that can be achieved over the useful life of the item, e.g., the best combination of quality, service, time, price. See also: Value.

Total dollar amount negotiated between buyer and seller.

1. The monetary value placed by a shipper on a shipment of goods when it is delivered to the carrier. 2. The value placed on imported goods by an importer for clearance through customs.

1. The estimated value of excess or surplus property prior to actual disposal. 2. The proceeds obtained from a sale of surplus property.

An integrated management tool that examines the cost, progress, and original schedule of a given project to determine variances from planned profiles. Its purpose is to allow for the prediction—with some degree of certainty— of actual cost and schedule status at the completion of a project, given cost and progress at certain intervals of contract performance.

The price for an item upon which the buyer and seller agree in an open market when both are fully acquainted with market conditions.

The price that a product, service, or property might be expected to bring if offered for sale in a fair market (i.e., one that is not prone to fluctuations).

The face value of a bond; the amount to be repaid when the bond is due.

The current value of an amount of money, rather than some future value it will have after being invested.

The estimated value, or salvage value, of a fixed asset at the end of their useful life or lease term.