ACCEPTANCE
Acceptance by an authorized representative, a declaration of intent to pay, and the adoption of a contractual obligation by a party are all examples of acceptance.
ACQUISITION
the process of purchasing, renting, or leasing products and services (including building) for use in a governmental operation. includes the determination of needs, the articulation of requirements, the choice of a procurement strategy, the choice of suppliers, the solicitation of offers, the award of a contract, financing, contract management, and related tasks.
ADDENDUM
a document that is supplemented or added to, such as products or data added to a procurement document.
ADVERTISE
to publicly declare plans to buy products, services, or construction with the goal of generating more interest and expanding the market. The announcement must comply with all applicable laws, regulations, policies, and public notification procedures.
AGREEMENT
a validly signed agreement; a legally enforceable deal.
ALP
The commissioner of administration will award someone who has successfully met all standards set forth by the Office of State Procurement authority for local purchases.
ANOTHER REACTION
a replacement response; a purposeful substantive modification to a fundamental stipulation or phrase in a vendor’s request.
MODIFICATION/CHANGE ORDER
an amendment to a contract, purchase order, or other agreement that has been made in writing.
APPROPRIATION
amount of public money set aside for a particular use.
ARO
After Order Receipt.
B
BEST VALUE
a purpose behind purchasing all goods and services. When purchasing goods and services, one of the evaluation criteria must be price. In addition to these, evaluation criteria may also take into account vendor performance, quality, and environmental factors.
CHECK FOR LADING
a document provided by a carrier that lists the items delivered to it for shipment and serves as a receipt or contract. Straight bills of lading are agreements that provide for direct delivery to a consignee. The order bill of lading allows a shipper to collect payment for a shipment before it reaches its destination since it is negotiable (this is done by sending the original bill of lading with a draft drawn on the consignee through a bank). The lading will be turned over to the carrier’s agent when the consignee gets a bill of lading stating that payment has been paid. The carrier will then ship the goods to the consignee, and the bill of lading will be turned over to the carrier. It should be noted that shippers frequently consign shipments to themselves on order bills of lading so that delivery is only done upon the shipper’s order. It is important to indicate the person or company who will be informed when the shipment arrives at its destination.
BASIC ORDER
a legal agreement that requires a vendor to deliver products or services based on customer demand. Although no numbers are mentioned, the contract often defines prices, terms, conditions, and the time frame covered. Shipments are to be made in accordance with the buyer’s requirements.
“BRAND NAME OR EQUAL”:
a specification that provides for the submission of identical items and employs one or more manufacturer brand names or catalog numbers to indicate the standards of quality, performance, and other qualities needed to meet the requirements of a solicitation.
BROKER
a company that does not maintain any inventory and does not have a signed, continuing contract with any manufacturer or manufacturer’s authorized distributor to sell the manufacturer’s products.
BUSINESS
An organization that is a sole proprietorship, partnership, association, corporation, or another type of company created with the intention of conducting business for profit as a contractor, subcontractor, supplier, consultant, or provider of technical, administrative, or physical services.
C
COMMODITY
a portable item of trade or commerce that can be bought, sold, bartered, or traded.
COMMODITY CONTRACT
Since the creation of MAPS, the contract number has been a six-digit number assigned by the computer system and was formerly known as “M-contracts.” These contracts no longer have a “M” number allocated to them.
COMPREHENSIVE PROCUREMENT GUIDELINES (CPG)
When federal, state, municipal, or contractor purchasers of the specified items spend more than $10,000 annually on any of the designated items, the designated items are required to have recycled material. For instance, a state agency must adhere to the EPS criteria and purchase paper that is 30% post-consumer recycled if it spends more than $10,000 annually on copy paper, some of which comes from federal monies that have been specifically earmarked for that purpose. (The Resource Conservation and Recovery Act [RCRASection ]’s 6002 and Executive Order 13101 of the President.)
CONSIDERATION
Something of value that is provided or performed in exchange for compensation that binds two parties to a contract.
CONTRACT
Any written or electronic document that an agency is a party to that includes the terms offer, acceptance, and consideration
CONTRACT MANAGEMENT
the administration of all steps that must be followed to ensure contract compliance after a contract has been awarded, such as timely delivery, acceptance, payment, contract closure, etc.
CONTRACTOR
An individual who consents to provide goods or services for a specific cost; they might be either prime contractors or subcontractors.
COLLABORATIVE PURCHASE
merging the needs of two or more government entities in order to benefit from bulk discounts and/or lower administrative costs
COLLABORATIVE BUYING VENTURE (CPV)
a cooperative purchasing program created by the State of Minnesota wherein participating governmental units can profit from volume purchasing and/or a decrease in administrative costs by making purchases under current commodities contracts with the State of Minnesota.
D
DISTRIBUTOR, JOBBER, OR DEALER
a company that keeps an inventory of a line or lines of goods and sells them to the public on a wholesale or retail basis in a store, warehouse, or other establishment.
DEBARMENT
the denial of a person’s eligibility to participate in requests for bids or proposals or the awarding of a contract by a government entity for a period of time corresponding to the gravity of the infraction, failure, or inadequate performance.
DEFAULT
Failure of a party to a contract to follow the terms of the deal.
DELIVERY
the legal transfer of ownership; the passing of possession, as when a carrier sells something to a buyer.
DEMURRAGE
the money necessary and made for the delay; the prolonged loading or unloading of a ship, railroad, automobile, or truck.
DESIGN REQUIREMENTS
A specification outlining the necessary qualities to be taken into account when awarding a contract, with enough specificity to demonstrate how the product is to be made.
DESTINATION
a location that a shipment is consigned to.
DOUBLE SHIPMENT
product that is sent directly to a customer by a manufacturer in response to a seller who takes orders but does not keep an inventory.
E
ECONOMICALLY DISADVANTAGED AREA BUSINESS (ED)
A small business entity with its principal place of business in Minnesota organized for profit, including an individual, partnership, corporation, joint venture, association, or cooperative that is 51 percent owned and is operationally controlled on a daily basis by citizens of the United States, qualifies for certification as a socially disadvantaged business or an economically disadvantaged area business. The US Department of Labor determines the areas of economic disadvantage.
EMERGENCY ACQUISITION
a danger to the public’s health, welfare, or safety that endangers governmental operations, property protection, or the wellbeing or safety of the populace.
Energetic Star
Office equipment must adhere to a government standard in order to be rated for energy efficiency. When not in use, Energy Star computers, monitors, and printers power down and enter a state of “sleep,” conserving energy and lowering pollution levels.
Environment-friendly product (EPP)
a good or service that, when compared to rivals serving the same purpose, has a smaller negative impact on the environment and human health. These goods and services could include—but are not limited to—those that reduce waste, save water or energy, and lower the amount of toxics that are consumed or disposed of.
EITHER EQUAL OR APPROVED EITHER
used to say that if an item is equal to a necessary item in terms of quality, performance, and other factors, it may be used in its place.
ESCALATION CLAUSE
a clause in a contract that allows price adjustments of a set amount or percentage in the event of certain circumstances, such as increases in the vendor’s costs of raw materials or labor.
EVALUATIONS OF REACTIONS
the analysis of submissions upon opening in order to ascertain the vendor’s accountability, responsiveness to demands, and other aspects of the request relevant to the award.
F
FISCAL YEAR
The 12-month period between one yearly financial account settlement and the next; is useful for budgeting, etc. The United States’ fiscal year. The fiscal year for the State of Minnesota is from July 1 to June 30; the government runs from October 1 to September 30.
FIXED ASSETS
Four types of state property are available:
all non-expendable items have a value of $2,000 or more and a normal life expectancy of more than two years.
any item with a typical life expectancy of more than two years and a value of less than $2,000 that is defined by the owning agency’s policy as fixed assets.
any and all firearms, regardless of price.
all delicate objects, in accordance with agency policy.
OFFICIAL SOLICITION
a request that needs a sealed response.
DEFINITIONS OF FREIGHT
See Shipping Terms PDF File.
G
GOODS
All sorts of personal property, including goods, supplies, equipment, and raw materials.
H
A DANGEROUS WASTE
Any waste (solid, liquid, or gas) that poses a significant risk to human health or the environment when handled, stored, transported, or disposed of improperly due to its quantity, concentration, chemical, physical, or contagious properties
I
OFFLINE APPLICATION
a request that doesn’t need a sealed response.
INSURANCE
a legal agreement between an insurance company and a person or organization that guarantees financial compensation in the event of a covered loss, accident, or death.
INVOICE
a list of products or services including information on prices, quantities, and shipping costs that is sent to a buyer.
J
TEAM UP VENTURE
the short-term collaboration of two or more companies to obtain and complete a procurement bid award.
L
LABOR SURPLUS — AREA OF
a U.S.-designated civil court system Updated yearly in the late fall by the Department of Labor. used as one of the standards for identifying vendors who are economically disadvantaged (ED).
LEAD TIME
the amount of time a supplier would need to deliver products after receiving an order.
LEASE
a legal agreement that grants one party the right to use another’s real or personal property for a specific amount of time in exchange for money or another type of remuneration.
LESS-THAN-TRUCKLOAD (LTL) (LTL)
an amount of freight that isn’t a truckload but is nonetheless enough to be considered such.
LESSEE
one who is given a lease.
LESSOR
one who leases property.
LIFE CYCLE COST
a method for evaluating purchases that calculates the total cost of ownership for the duration that the item is in use, including the costs of ownership, use, maintenance, and disposal.
LISTE IMAGE
an offering of goods or services for which the vendor is required to provide a separate price.
LIQUIDATED DAMAGES
Unless otherwise required by law, a predetermined amount of money agreed upon as part of a contract to be paid by one party to the other in the event of a breach of contract in lieu of actual damages
LIST PRICE
The cost of an item that is listed in a catalog, advertisement, or printed list, less any reductions that may apply.
LOWEST RESPONSIBLE VENDOR
whoever offers the lowest price and whose track record, standing, and financial capacity are judged acceptable.
M
MANDATORY
A specification or exact description that cannot be waived is required by the order.
MAPS
The accounting and procurement system of Minnesota. When discussing the procurement side of the system, MAPS or AGPS are frequently mentioned, while GFS are frequently mentioned when discussing the accounting side.
MANUFACTURER
a company that creates or transforms raw resources into final goods.
MARKET
the totality of forces, including economics, involved in trade and commerce for a particular good or service. to evaluate, sell, publicize, package, etc.
MATERIAL DEVIATION/MATERIAL VARIANCE
a departure from the conditions specified in the request for proposals that grants one respondent a major advantage or benefit not enjoyed by all other respondents or that provides the state with something very different from what the state asked in the solicitation document
MODEL PROCUREMENT CODE (MPC)
encompasses all aspects of standardization, quality assurance, and surplus property management.
PROCUREMENT MODEL CODE (MPC)
An American Bar Association-approved publication that outlines ethical standards for public and private participants in the procurement process as well as statutory principles and policy guidelines for managing and controlling the procurement of supplies, services, and construction for public purposes. It also provides administrative and judicial remedies for resolving contract disputes.
MULTIPLE AWARD
contracts for comparable commodities and services that are given to more than one supplier. The same generic categories of products are given awards at varying pricing points.
N
NAICS (NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM) CODE
Business establishments are categorized according to their primary activity in order to facilitate the collection, tabulation, presentation, and analysis of data gathered by various state and federal agencies, trade associations, and private research organizations. This classification also aims to promote uniformity and comparability in the presentation of statistical data pertaining to the business establishments in question and the industries in which they operate.
NAPM
national purchasing management association a nonprofit association for purchasing, materials management, and purchasing organizations from the public and private sectors.
NASPO
State Purchasing Officials National Association. a group of state procurement officials who work to advance state-level public procurement regulations and practices that are effective and efficient. A member of the Control of State Governments is NASPO (CSG).
NEGOTIATION
Sometimes negotiations to construct a contract will begin with requests for proposals. RFPs typically take into account factors other than merely pricing. When working with a single source manufacturer, this approach is very appropriate.
NET PRICE
Price after allowing for any and all discounts, rebates, etc.
NIGP
National Institute of Public Procurement a nonprofit organization that provides instructional and technical support to public purchasing organizations and initiatives at the local, state, and federal levels of government.
NO BID
a declaration made in response to a request for bids indicating the respondent does not desire to make an offer. In most cases, it serves as a procedural safeguard to avoid suspension from the suppliers list for failing to respond.
O
OPEN MARKET REQUISITION (OMR)
When the anticipated cost of the desired item exceeds the buyer’s authority for purchase level, MAPS Procurement uses this form of requisition document to seek the purchase of a non-contract item. The request for purchase is communicated to the buyer by an OMR. The Purchase Order Requisition order type is the one that results most frequently (POR).
OPTION TO EXTEND/RENEW
a clause (or its exercise) that permits the contract to be extended for a further period of time in accordance with the contractual terms.
OSHA
the Office of Occupational Safety and Health. by the OSHA Act founded.
P
PACKING LIST
a record that precisely lists the contents of a certain shipment or package.
PAYMENT IN PART
the sum of money specified in a contract as being payable upon completion of a certain service specified therein or upon delivery of one or more units specified therein.
PER DAY
day by day.
RELIABILITY BOND
A guarantee agreement is a contract that a successful vendor signs after being chosen to guard against losing money if they are unable to finish the work as promised.
PERFORMANCE SPECIFICATION
a specification outlining the performance criteria judged to be necessary for the object in question to function and last as needed.
PLANT-MATTER BASED OR BIO-BASED PRODUCT
a product made from renewable resources, such as fiber crops like kenaf, chemical extracts from oilseeds, nuts, fruits, and vegetables (like corn and soybeans), agricultural wastes like wheat straw and corn stover, and wood wastes from manufacturing and processing processes. These items contrast with those produced using fossil fuels (like petroleum) and other non-renewable resources (such as virgin timber).
POSSIBLE ORIGIN
(Transit point)
the place where a transportation line receives a shipment from the shipper.
POLITICAL SECURITY
a division of a state that is authorized to carry out specific local governmental duties. includes parishes, boroughs, cities, towns, villages, hamlets, and counties.
POST-CONSUMER MATERIAL
a finished product that, after completing its life cycle as a consumer good, would typically be disposed of as solid garbage. excludes producing goods or recycling garbage. This is stuff that is gathered for recycling from places including houses, retail establishments, and office buildings.
PRE-CONSUMER MATERIAL
Materials or byproducts, such as broken or outdated products, produced after a product is manufactured but before it reaches the consumer. Pre-consumer material excludes mill and factory trim, scrap, and damaged items that are created in a manufacturing facility and frequently used there again during the same or a different manufacturing process.
PREFERENCE
a benefit given to a vendor in exchange for receiving a contract because of their place of residence, place of operation, or line of business (e.g., minority, small business).
PREPAID
a phrase used to indicate that shipping costs have been or must be paid for at the shipping location.
PREQUALIFICATION OF VENDORS
the process of vetting potential vendors in which the development of a list of approved providers takes into account aspects including financial capability, reputation, and management. View the Vendors List, Responsible/Qualified Vendors.
PRICE
the sum of money required to buy a specific quantity of a commodity in some form or another.
PRICE ACCORD
a legal arrangement whereby a buyer and a seller make a deal for the vendor to fulfill the buyer’s needs for a set price. often involves a minimum quantity, orders placed directly with the seller by the purchase, and a short contract term. See Requirements Contract and Blanket Order.
COST FIXING
agreement between rival vendors to offer their goods for the same price.
PROCUREMENT
operations that include receiving, inspection, storekeeping, traffic and transportation, inventory control, and salvage and disposal.
PROPRIETARY
the only things that can fulfill a demand and fulfill a purpose. An object might be proprietary and yet be available from more than one source, so this should not be confused with “single source.” For instance, a Nikon lens is “proprietary” if you need a camera lens for a Nikon camera since no other lens will fit; yet, the Nikon lens is accessible from multiple sources, so it is not single source.
COMMON PURCHASE
the method of acquiring products and services for public use while adhering to regulations set up to prevent the wasteful or arbitrary use of taxpayer money.
ADVANCE MANUAL
a document that lays out guidelines and prescribes practices for dealing with suppliers and other departments while making purchases.
BUYING ORDER
the vendor’s offer acceptance document, which has been signed. The official and enforceable contract between the parties is a purchase order.
Q
VENDOR WHO IS QUALIFIED AND RESPONSIBLE
A vendor who has been found by a buying group to meet minimal requirements for business competence, reputation, financial capability, and product quality.
QUALIFYING PRODUCTS (QPL)
A list of goods that, because to the time needed for testing and evaluation, are tested before being purchased to ascertain which providers meet the specifications. A list of “authorized brands” is another name for it.
QUALITY
the combination of a product or service’s material qualities—including performance qualities and characteristics—that are necessary to meet a certain requirement.
QUANTITY
Amount or quantity.
QUANTITY SAVINGS
a decrease in the unit price that is provided for contracts with high volume.
R
RENEWABLE CONTENT
The percentage of a product that is made from waste materials; typically expressed as a percentage of weight.
RENEWABLE PRODUCT
When post-consumer material cannot be used for a particular sort of product, or when post-consumer material is not practical, a product incorporates significant amounts of pre-consumer material.
PRODUCT REMANUFACTURED
any product that has been removed from the supply of waste materials through refurbishment and marketing while retaining the majority of its original features.
RENT
a leasing agreement that grants the right to use real estate or other property for a predetermined period of time in exchange for rent or other payment.
ASK FOR QUOTE (RFB)
a request for proposals when the terms, conditions, and specifications are outlined and the responses are not negotiable.
APPLICATION FOR PROPOSAL (RFP)
A request that is open to negotiation is one in which it is not advantageous to specify all of the precise, actual requirements at the time of the solicitation and responses. The prize must take price into consideration, but not only.
REQUIREMENT
Resources, manpower, or services required for a specified time period.
PRESCRIPTIONS CONTRACT
Form or agreement used when the entire quantity needed over the long term cannot be precisely determined but can be expressed as an estimate or within maximum and minimum bounds with supplies on demand.
REQUISITION
An internal report that a functional department (such as the stores, maintenance, or manufacturing) provides to the purchasing department with information about the resources it needs to meet its demands, restock its supplies, or procure materials for certain works or contracts.
REGISTERED VENDOR
A person, business, or corporation that is legally permitted to operate in the state of Minnesota on the day that a request for proposals is published or made public. It consists of a foreign corporation that is legally permitted to conduct business in Minnesota.
RESPONDER
one who sends in a response to a request for proposals.
RESPONSE
the proposal made in response to a request by a vendor. Submissions that are typically referred to as “offers,” “bids,” “quotes,” or “proposals” are included in a response.
CONSCIOUS BIDDER
A bidder who’s standing, track record, and business and financial capabilities are such that an appropriate authority would consider them competent of meeting an organization’s needs for a particular contract.
RESPONSIVE BIDDER
a bidder whose offer adheres to the requirements and conditions outlined in the request for bids.
RESTRICTIVE REQUIREMENTS
specifications that unduly restrict competition by excluding goods capable of adequately addressing actual needs Performance Specification is available.
REUSED GOODS
Any product made to be reused repeatedly for the same or different purposes without additional processing beyond what is necessary, such as minor repairs, cleaning, or painting.
RFB CONFERENCE OR RFP
a gathering organized by a procurement office to assist prospective bidders in comprehending the specifications of an RFB or RFP
S
SALES TAX
a tax imposed by a level of government with authority on a vendor’s sales.
SEALED
a strategy chosen by the commissioner to keep the information from being made public or known ahead of the deadline for submission of reply.
SERVICES
Unless specifically stated otherwise, professional or technical services as well as services rendered under a service agreement.
SINGLE SOURCE UNIQUE
a purchase where only one provider is found to be fairly available for the needed good, service, or building component after a search.
SOLICITATION
the method used to inform prospective vendors of the procurement requirements and solicit their responses. A solicitation can include requests for bids and proposals, although they are not the only types.
SOURCE REDUCTION PRODUCT
Durable, reusable, and remanufactured products, as well as those with little or no packaging, are examples of products that help reduce waste generation.
SPECIFICATION
a brief description of the requirements that must be met by a product, material, or process, along with whenever relevant instructions on how to check to see if the requirements have been met. It is preferable that the requirements be expressed numerically in terms of suitable units, together with their limits, as far as is practical. A specification could be a standard, a component of a standard, or something entirely different.
STANDARD
a quality or collection of qualities that are universally acknowledged as necessary for all similar things by manufacturers and users of the product.
STANDARDIZATION
The process of determining and putting into place the circumstances necessary to guarantee that a specific range of needs can typically be satisfied, with a minimum of variety, in a repeatable and cost-effective way using the best available techniques.
SURPLUS REAL ESTATE
property that is more than what a company requires and is not necessary for its intended use. Even if surplus is brand-new or used, it might still be valuable for the original or a different purpose.
T
TABULARIZATION OF REACTIONS
recording responses for comparison, analysis, and record-keeping purposes.
TARGETED GROUP BUSINESS (TG)
a certified company named by the commissioner of Administration that offers commodities, products, or services under the commissioner-designated purchasing categories and is majority owned and controlled by a woman, a person with a disability, or a member of a certain minority group.
TERMS AND CONDITIONS
a term used to describe the requirements under which all bids must be submitted and the clauses found in the majority of buy contracts; it is frequently published by the purchasing authorities for the benefit of all prospective vendors.
TITLE
The legal document or instrument that establishes property ownership.
TORT
a wrongdoing for which damages may be recovered under the law but which is not a breach of contract.
TRUCKLOAD (TL) (TL)
1. a shipment that is offered as a truckload or a quantity of freight to which truckload pricing apply.
2. a highway trailer or vehicle that is fully loaded. Check out Less-Than-Truckload.
U
UNIFORM CODE OF COMMERCE (UCC)
a thorough modernization of numerous commercial transaction-related statutes, such as those governing sales, leases, negotiable instruments, bank deposits and collections, money transfers, bulk sales, documents of title, investment securities, and secured transactions. Minnesota is the location of Minnesota law. Stat. Ch. 336.
Unit Cost
cost of a certain unit of an item or service (e.g., pound, labor hours, etc.).
UNSUCCESSFUL VENDOR
a supplier whose offer is rejected due to issues like pricing, quantity, not meeting requirements, etc.
V
VALUE ANALYSIS
An organized effort focused on examining the functionality of systems, products, specifications, standards, practices, and procedures with the goal of achieving the required function at the lowest possible total cost of ownership while still meeting the standards for performance, reliability, quality, and maintainability.
VENDOR
A “seller” is a person who sells something.
VENDOR LIST
a list containing the names and addresses of suppliers who would be expected to submit bids, proposals, and quotes. All suppliers who have showed interest in doing business with the government should be on the buying office’s list.
VIRGIN GOODS
a product that has no recycled materials and is created entirely from new raw materials.
VOLATILE ORGANIC COMPOUNDS (VOCs)
compounds with a strong scent and the ability to evaporate quickly at room temperature. They can originate from a variety of goods, including office supplies, adhesives, carpeting, upholstered furniture, paints, solvents, and cleaning agents. In some circumstances, particularly when they are concentrated indoors, some VOCs can result in cancer. Ozone, a dangerous outdoor air pollutant, is also produced by VOCs.
WARRANTY
the affirmation, stated or inferred, that a certain fact related to the contract’s subject matter is true at the time of the representation or will be true in the future. Not to be confused with “guarantee,” which refers to an agreement or pledge by one party to be responsible for the actions of another.
