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Acceptable
product list: list of
products which conform to the applicable compendia,
specifications, standards, or other descriptions, and which have
proven acceptable.
Acceptable
quality level (AQL):
the specified minimum performance that must be achieved by the
product to assure the purchasing authority that the goods or
services will perform as required.
Acceptance: refers to the act in which the person
to whom the offer is made exchanges his or her own promise or
performance for the promise made in the offer; approval of
specified services, or supplies as partial or complete fulfillment
of a contract. It is one of the elements in forming an express
contract.
Advance
payment: payments made
prior to the and in anticipation of receiving the contracted goods
or services.
Agent: refers to a person authorized by
someone else, call the principal, to act for him or her.
Approved
source list: a list of
businesses able to supply specific goods and services and approved
on the basis of the suitability of their facilities and
capabilities.
Back order: that portion of an order for
merchandise not available for delivery by the vendor at the
scheduled time and promised for delivery at a later date.
Best value: (1) an assessment of the return which
can be achieved based on the total life cycle cost of the item;
can include an assessment of the functionality of the item; can
use cost/benefit analysis to define the best combination of
quality, service, time, and cost considerations over the useful
life of the acquired item. (2) highlights the importance of
technical merit and or performance of a bid to satisfy a
particular requirement, relative to the importance of the bid
price one is prepared to pay to satisfy this particular
requirement.
Bid: an offer submitted by a prospective
vendor in response to an invitation for bid (IFB) or issued by a
purchasing authority; becomes a contract upon acceptance by the
buyer.
Bid bond: an insurance agreement, accompanied by
a monetary commitment, by which a third party (the surety) accepts
liability and guarantees that the bidder will not withdraw the
bid, the bidder will furnish bonds as required, and if the contact
is awarded to the bonded (insured) bidder, the bidder will accept
the contact as bid, or else the surety will pay a specified
amount.
Bid
evaluation criteria table: identifies in the bid solicitation
document, the mandatory and main point-rated evaluation criteria
areas to be evaluated, the rating values applied to each of the
main areas and the proposed contractor selection method.
Bid
opening: the formal
process in which sealed bids are opened, usually in the presence
of one of more witnesses, at the time and place specified in the
invitation for bids. The amount of each bid is recorded and bids
are made available fur public inspection.
Bid
tabulation: a public
document listing all vendors who received a copy of the invitation
for bid (IFB), with a list of the items in the IFB, and showing
unit prices and extended prices for each item for each bidder. May
also include total prices, delivery terms and conditions, whether
each bidder has met the requirements for licenses, bonds, evidence
of insurance, or other information deemed appropriate by the bid
opening officer. Solicited vendors not responding to the IFB and
shown as “no bid”.
Bidders
list: a list of names
and addresses of vendors from whom bids, proposals or quotations
can be solicited.
Certificate of compliance: a document with vendor’s or
manufacturer’s written assurance that the goods or services
delivered fulfill contractual requirements.
Change
order: a written
alteration to a contract or purchase order, signed by the
purchasing authority, in accordance with the terms of the
contract, unilaterally directing the contractor to make changes.
Claim: a written assertion or demand, by one
of the parties to a contract, which seeks as a contractual right,
payment of money, adjustment of contract terms or other relief for
injury, loss or damage arising under or relating to the contract.
Competitive negotiation:
a method for acquiring goods and services for public use in which
discussions may be conducted with responsible offerors who submit
proposals in writing.
Competitive sealed bidding: preferred method for acquiring goods
and services for public use in which award is made to the lowest
responsive and responsible bidder, based solely on the response to
the criteria set forth in the IFB; does not include discussions or
negotiations with bidders.
Competition: the effort
of two or more vendors to secure the business of a purchaser by
the offer of the most favorable items to price, quality,
promptness of delivery, and/or service.
Consideration: refers
to a type of mutual commitment that must exist to form an express
contract. It means that the person making an offer intends that
the person to whom it is made does or promises to do something he
or she is not legally obligated to do; and that the person
accepting the offer actually does or promises to do something not
legally required.
Contract: refers to promises or agreements for
which the law established enforceable duties and remedies.
Contract
administration: the
management of all actions that must be taken to assure compliance
with the terms of the contact after the award of the contract.
Cooperative purchasing:
procurement conducted on behalf of two or more public procurement
units.
Cost/benefit analysis:
evaluation of the trade-off between the cost of a good or service
and the value of benefit to be obtained in order to choose among
alternative.
Design
specification: a
specification establishing the characteristics an item must
possess, including sufficient detail to show how it is to be
manufactured.
Emergency
purchase: a purchase
made to alleviate a situation in which there is a threat to
health, welfare, or safety under certain conditions defined as an
emergency by the jurisdiction, that does not allow time for
normal, competitive purchasing procedures.
Express
contract: refers to
those contracts either written or oral, in which all of the formal
elements for contract creation exist.
Express
warranty: refers to an
explicit guarantee as to certain facts given by a vendor in direct
and appropriate language, rather than left to inference or
implication (when one contracting party promises or asserts the
existence of certain facts and those promises and assertions
become a reason that the other party enters into the contract.)
Evaluation
criteria:
mandatory
and/or point-rated criteria used to establish the minimum
requirements that a bid must meet to be considered a responsive
proposal.
Evaluation
of bids:
the
examination of bids after opening to determine the bidder’s
responsibility, responsiveness to requirements, and other aspects
of the bid to determine successful bidder.
F.O.B.: free on board.
Functional
specification: a
specification setting forth the results required from the supply
or service
Implied
warranty:
refers, in
contract law, to a warranty that arises by law in certain
circumstances
without a person expressly making a guarantee or assurance.
Informal
bid: a competitive bid
for price quotation for supplies or services that is conveyed by
letter, telephone, or other means and does not require a sealed
bid, public opening, or public reading of bids.
Invitation
for bid (IFB): a formal
request to prospective vendors soliciting price quotations of
bids, contains, or incorporates by reference, the specifications
or scope of work and all contractual terms and conditions.
Life cycle cost: the total cost of ownership, the
total cost of acquiring, operating, maintaining, supporting, and
(if applicable) disposing of an item.
Offer: refers to a promise or commitment one
person makes to another to do or not to do a specified thing in
the future. It is one of the elements in forming an express
contract.
Payment
bond: a bond which
assures payments, as required by law, to all persons supplying
labor or material for the completion of work under the contract.
Performance: the
technical, operational, and quality characteristics of the end
item.
Performance bond: a
bond, executed subsequent to award by a successful bidder, to
protect the buyer from loss due to the bidder’s inability to
complete the contact as agreed; secures the fulfillment of all
contract requirements.
Performance specification: a specification setting forth the
capabilities and performance characteristics the article must
satisfy.
Principal: refers to person who has authorized
another, called an agent, to act for the person.
Progress
payment:
payments made
in advance of full delivery as specified percentages of the total
purchase are delivered, or certain stages of work performance are
achieved.
Purchase
description:
the words
used in a solicitation to describe the supplies and services to be
purchased; includes specifications that are attached to or form
part of the solicitation.
Quality: the composite of all attributes or
characteristics, including performance that satisfy a user’s need.
Receiving: the function of accepting from all
sources all items of supply used in the Department.
Receiving
inspection: inspection
of purchased items at the point of receipt, after delivery by the
vendor, to ensure compliance with specifications and agreements.
Rejection: refusal of delivered supply or service
that does not meet contract specifications or requirements.
Restrictive specification: specifications that unnecessarily
limit competition by eliminating items capable of satisfactorily
meeting actual needs, often by requiring features which exceed the
minimum acceptable characteristics required for satisfactory
performance.
Request
for proposal (RFP): all
documents, whether attached or incorporated by reference, utilized
for soliciting competitive proposals.
Request
for quotation (RFQ): an
informal solicitation or request for information, where oral or
written quotes are obtained from vendors, without formal
advertising or receipt of sealed bids. Used only where statues do
not require formal sealed bids, such as small or emergency
purchases, but price competition is desired.
Regulations: are
specific written processes and requirements that statues authorize
governmental agencies to create to implement them. They are often
called “rules” and have the same legal effect as statues.
Requirement: the
specific supplies or services and the time period within which
they are needed.
Requirement analysis:
value analysis applied to the writing of specifications to
eliminate products or services that are not cost effective.
Requisition: an
internal document by which a using agency sends details of
supplies, services, or materials required to the purchasing
department.
Specification: a
description of the physical or functional characteristics, or the
nature of a supply or service; the requirements to be satisfied by
a product, material, or process indicating, if appropriate, the
procedures or determine whether the requirements are satisfied.
Solicitation: a request
for bids to provide supplies or services.
Statues: are laws passed by Congress or a state
legislature and signed by the President or the governor of a
state, respectively, that are codified in volumes call “codes”
according to subject matter.
Subcontract: a contract
with another business entity entered into by a prime contractor or
another subcontractor to obtain supplies or services of any kind
under a prime contract.
Tabulation
of bids: the recording
of bids and bidding data listing items offered, prices, delivery,
schedules, etc., submitted in response to a solicitation for
purposes of comparison, analysis, and record keeping.
Warranty: the representation, either expressed
or implied, that a certain fact regarding the subject matter of a
contract is presently true or will be true; a promise that certain
facts are truly as they are represented to be and that they will
remain so, subject to any specified limitation. |
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