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Glossary

TERMDEFINITION
AddendumAn addition or supplement to a document.
AdvertiseTo make a public announcement or legal notice, of forthcoming solicitation with the aim of increasing the response and enlarging the competition, often required by law.
All or noneA bid submitted in response to a Request for Bid, in which the bidder states the it will not accept a partial award, but will only accept an award for all the items or services included in the Request for Bid.
AwardThe presentation, after careful consideration, of a purchase agreement or contract to the selected bidder or proposer
Back orderThat 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.
BidAn offer submitted by a vendor in response to a Request for Bid.
Bid sampleA sample offered by a bidder when required in a Request for Bid.  The samples are considered a part of the Request for Bid and are examined and tested for conformance with the requirements of the Request for Bid.
Bid/Proposal bondAn insurance agreement, accompanied by a monetary commitment, by which a third party (the surety) accepts liability and guarantees that the vendor will not withdraw the bid or proposal, and that the vendor will accept the contract as bid or proposed, or else the surety will pay a specific amount.
Change OrderA written order amending a purchase transaction previously formalized by a purchase order.
CollusionA written order amending a purchase transaction previously formalized by a purchase order.
CommodityAny movable, tangible article of trade or commerce.  A system of words and numbers designed to identify and list goods or services by classes and subclasses.
ConstructionThe process of building, altering, repairing, improving, or demolishing any public structure or building, or other public improvement of any kind to any public real property.
ContractAn agreement between parties, with binding legal and moral force, usually exchanging goods or services for money or other consideration.
Cooperative purchasingCombining requirements of one or more public procurement units in order to obtain the benefits of volume purchases and/or reduction in administrative expenses.
DebarmentThe exclusion of a person or company from participating in a procurement activity for an extended period of time, as specified by law, because of previous illegal or irresponsible action.
DeliveryThe physical transfer of possession from one person to another, as from a carrier, vendor, or contractor to the purchaser.
DestinationThe place to which a shipment is consigned.
EIN/FINThe number assigned to a business unit or individual for purposes of Withholding tax.
Emergency purchaseAn unexpected or unforeseen event that may cause serious loss to public or private property or endanger the health of lives of the citizens of the City of Opelika unless immediate action is taken.
EthicsThe principles of conduct governing the behavior of an individual or a profession.
ExpenditureThe act or process of paying for goods or services
F.O.B.Without charge for delivery to and placing on board a carrier at a specified point, determines the point at which title for the shipment passes from vendor to purchaser
Force Majeure (Act of God)Acts beyond the control of the party in question, acts of God or disruptive conditions for which a vendor or carrier cannot be held responsible.
GratuityA payment loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received in return.
Informal bidA competitive bid or price quotation for supplies or services that is verbally conveyed and does not require a sealed bid, public opening, or public reading of bids.
InsuranceA contract in which one party, for a fee, undertakes to protect another party against loss, damage or liability arising from an unknown or contingent event.
InvoiceA list of goods or services, showing prices, terms, quantities, shipping charges, and other particulars sent to a purchaser in request for payment.
Late bid/proposalA bid, proposal received at the designated place for receipt after the established due date and time.
Lowest responsible bidder/proposerThe bidder/proposer that submitted a responsive bid at the lowest price of all the responsive bids submitted, and whose past performance, reputation, and financial capability is deemed acceptable.
MandatoryObligatory, required by order, a provision that may not be waived.
ModificationAny written alteration to a provision of any contract accomplished by mutual agreement of the parties to the contract.
No bidA response to a Request for Proposal stating that the respondent does not wish to submit an offer.
Performance bondA bond executed subsequent to award by a successful bidder, to protect the buyer from loss due to the bidder's inability to complete the contract as agreed, secures the fulfillment of all contract requirements.
Pre-bid/proposer conferenceA meeting held with prospective bidders to clarify any ambiguities, answer bidder questions, and ensure all bidders have a common basis of understanding regarding the supplies or services required.
ProcurementPurchasing, renting, leasing, or otherwise acquiring any supplies, services, or construction includes all functions that pertain to the acquisition, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.
ProprietaryMade and marketed by one having the exclusive rights to manufacture and sell.
Purchasing AgentThe Director of the procurement department.
Purchase orderA purchaser's written document to a vendor formalizing all the terms and conditions of a proposed transaction.
PurchasingThe act and function of responsibility for the acquisition of equipment, materials, supplies, and services.  In a broader sense the term describes determining the need, selecting the supplier, arriving at a fair and reasonable price and terms, preparing the contract or purchase order, and following up to ensure timely delivery.
Request for Bid (RFB)A formal request for pricing information form vendors.  A request is normally made in writing using an official form by a purchasing officer for written response.
Request for Proposal (RFP)A formal written document, in which a solution is sought.  The entity provides specifications and/or requirements and parameters to be used in determining the best solution.
RequisitionAn internal document requesting material or services and authority to commit funds to cover the purchase.
Responsive bidderA vendor who has submitted a bid which conforms in all material respects to the requirements stated in the Request for Bid/Proposal.
Sole SourceOnly one vendor possesses the unique and singularly available capability to meet the requirement of the solicitation.  (I.e., publisher of software or manufacturer)
SolicitationA request for bids or proposals to provide supplies, services, or construction items.
SpecificationA concise statement of a set of requirements to be satisfied by a product, material, or process; indicating whenever appropriate the procedures to determine whether the requirements are satisfied.
VendorA seller of supplies, services, and construction.
Vendor fileThe accumulated record maintained by the central purchasing authority on a vendor.
WarrantyA promise that certain facts are truly as they are represented to be and that they will remain so, subject to any specified limitation