Dictionary of Procurement Terms

The amount paid to workers to produce one unit of output, calculated by multiplying the hourly rate for direct labor by the time it takes to complete one such unit.

A measure of packaging (e.g., carton, box, bottle).

The cost per unit of a product or service (e.g., price per ton, per labor hour, or per foot).

Uniform body of law that governs contracts for the international sale of commercial goods.

The official codification and compilation of all the permanent and general laws of United States federal statutes.

The twelvecharacter bar code that uniquely identifies a company's product.

An independent entity formed to govern and administer the Certified Public Procurement Officer (CPPO) and the Certified Professional Public Buyer (CPPB) certification programs. This non-profit organization was jointly established by The Institute of Governmental Purchasing, Inc. (NIGP) and the National Association of State Procurement Officials (NASPO) in 1978. The UPPCC is composed of members from the California Association of Public Procurement Officers (CAPPO), the Florida Association of Public Procurement Officers (FAPPO), the National Association of Educational Procurement (NAEP), and the National Procurement Institute (NPI). The UPPCC is responsible for establishing, monitoring, and revising program requirements, as well as developing and approving content for the certification examinations.

A term used when specifications or terms and conditions limit competition arbitrarily, without reasonably promoting the fulfillment of the procurement needs of a contracting authority.

An offer submitted by a contractor/supplier or consultant in the absence of a bid or solicitation from a buyer. May be submitted in response to a perceived need but not in response to a buyer’s formal request.

Market that exhibits short-term fluctuations. Oil, minerals, agricultural products, and animal by-products typically dominate this type of market. The supply of these raw materials is frequently influenced by political forces, weather conditions, speculative financial actions, and other unpredictable reasons not governed by the laws of supply and demand.