Procurement Glossary

Selecting suppliers based on the optimal combination of quality, price, and other factors rather than lowest bid alone.

A strategic approach organizing procurement around groups of similar products or services.

A procurement process inviting multiple suppliers to submit offers for evaluation and award.

The administration of contracts from award through execution, compliance monitoring, and closure.

The acquisition of raw materials and components used directly in the production of goods.

The use of digital technology and internet-based platforms to manage procurement processes electronically.

The primary regulatory framework governing procurement by U.S. federal government agencies.

A pre-established arrangement setting terms for future orders without committing to specific quantities.

The acquisition of goods and services that support operations but are not part of the final product.

Unauthorized purchasing outside established contracts or procurement policies.

The end-to-end process from requisition and purchase order through goods receipt, invoicing, and payment.

The process of sourcing, negotiating, and acquiring goods, services, or works from external suppliers.

A legally binding commercial document specifying types, quantities, prices, and terms for goods or services.

A preliminary inquiry to gather general information about supplier capabilities before formal solicitation.

A formal solicitation inviting suppliers to submit detailed proposals for a specified requirement.

A solicitation requesting price quotes from suppliers when specifications are clearly defined.

An online auction where suppliers compete by lowering prices in real time.

A contract defining the expected level of service, including performance metrics and remedies for non-compliance.

Procurement from the only available supplier for a particular good or service.

The process of identifying, evaluating, and selecting suppliers to provide goods and services.

The collection, classification, and analysis of organizational expenditure data to inform procurement strategy.

Systematic management of supplier interactions to maximize value and foster strategic partnerships.

Incorporating environmental, social, and economic considerations into purchasing decisions.

A verification process comparing the purchase order, goods receipt, and invoice before authorizing payment.

The complete cost of acquiring and using a product or service over its entire lifecycle.