What does it mean?? Glossary of Common Procurement Terms
Understanding the procurement processes begins with an understanding of the terms associated with it. You may hear these terms quite often but not really know exactly what they mean.
- Quote: An informal request for pricing information that may be written or oral.
- Request For Bid: A solicitation in which the terms, conditions, and specifications are described, and responses are not subject to negotiation.
- Request For Proposal: A solicitation in which it is not advantageous to set forth all the actual, detailed requirements at the time of solicitation, and responses are subject to negotiation. Price must be a factor in the award but, not the sole factor.
- Sealed Bid: A method of sale where confidential bids are submitted to be opened at a predetermined place and time.
- No Bid: A response to a solicitation for bids stating that the respondent does not wish to submit an offer. It usually operates as a procedural consideration to prevent suspension from the vendors list for failure to submit a response.
- Vendors List: A list of suppliers from whom bids, proposals, and quotations might be expected. The list includes all suppliers who have expressed interest in doing business with the University.
- Lowest Responsible Vendor: The vendor with the lowest price meeting specifications and whose past performance, reputation, and financial capability is deemed acceptable.
- Blanket Order: A contract under which a vendor agrees to provide goods and/or services on a purchase-on-demand basis over a certain time period.
- Addendum: An addition or supplement to a procurement contract to which both the University and vendor agree in writing.
- Change Order: A requested modification to a Purchase Order by the department through a Requisition. Examples would include changes to item pricing or accounting information.