Some Common Procurement Terms

ADDENDUM
An addition or supplement to a document; e.g., items or information added to a procurement document.

ADVERTISE
To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conform to the legal requirements imposed by established laws, rules, policies and procedures.

BLANKET ORDER
A contract under which a vendor agrees to provide goods or services on a purchase-on-demand basis. The contract generally establishes prices, terms, conditions and the period covered (no quantities are specified); shipments are to be made as required by the purchaser.

BROKER
A business that carries no inventory and that has no written ongoing agreement with any manufacturer or manufacturer’s authorized distributor to sell the products of the manufacturer.

CONSIDERATION
Something of value given or done as recompense that is exchanged by two parties; that which binds a contract.

CONTRACTOR
A person who agrees to furnish goods or services for a certain price; may be a prime contractor or subcontractor.

DESIGN SPECIFICATION
A specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product is to be manufactured.

DROP SHIPMENT
Merchandise which is shipped by a manufacturer directly to a customer in response to the seller who collects orders but does not maintain an inventory.

EQUAL OR APPROVED EQUAL
Used to indicate that an item may be substituted for a required item if it is equal in quality, performance and other characteristics.

ESCALATION CLAUSE
A contract provision which permits the adjustment of contract prices by an amount or percent if certain specified contingencies occur, such as changes in the vendor’s raw material or labor costs.

LOWEST RESPONSIBLE VENDOR
The vendor with the lowest price whose past performance, reputation and financial capability is deemed acceptable.

MATERIALS MANAGEMENT
Embraces all functions of acquisition, standards, quality control and surplus property management.

REQUIREMENTS CONTRACT
A form or contract that is used when the total long-term quantity required cannot be definitely fixed, but can be stated as an estimate or within maximum and minimum limits with deliveries on demand.

RESPONSIBLE BIDDER
A bidder whose reputation, past performance and business and financial capabilities are such that the bidder would be judged by an appropriate authority as capable of satisfying an organization’s needs for a specific contract.

VENDORS LIST
A list of names and addresses of suppliers from whom bids, proposals and quotations might be expected. The list, maintained by the purchasing office, should include all suppliers who have expressed interest in doing business with the government.

VIRGIN PRODUCT
A product that is made with 100-percent new raw materials and contains no recycled materials.

This article originally appeared in the issue of .

Featured

  • Three U.S. Universities Install Acre Security Access Control Platform

    Cloud-native physical and digital security solutions company Acre Security recently announced that it has deployed its access control platform at three major universities in the U.S., according to a news release. Acre partnered with Atrium Campus to provide coverage for more than 69,000 students at the University of Virginia (UVA), George Mason University, and Rockhurst University.

  • Spaces4Learning Announces Winners of 2025 Product Awards

    Spaces4Learning has just announced the winners of the 2025 Product Awards! The award program recognizes innovation and excellence in products that enhance learning environments in K–12 schools and institutions of higher education.

  • Texas District Finishes Construction on New Middle School, Admin Building

    The Westwood Independent School District recently held a ribbon-cutting ceremony for the new Westwood Middle School and Administration Building in Palestine, Texas, according to a news release. The campus covers 106,000 square feet and has the capacity for 650 students in grades 6–8, and it will also play home to the district’s staff and administration.

  • ClassVR Wins Tech & Learning Best of Show at ISTELive 25

    Avantis Education recently announced that its flagship product, ClassVR, won the Tech & Learning Best of Show Award at ISTELive 25 in San Antonio, Texas, according to a news release. The program is designed to celebrate products that are “transforming education in schools around the world and that show the greatest promise for the industry,” and this is the fourth consecutive year that Avantis has claimed the award.

Digital Edition