PNS (Purchaser Notification Service)
The Purchaser Notification Service (PNS) is a business process for the exchange of information between buyers and suppliers. It serves as an automated alert system that informs participants in government procurement contracts when an event or milestone has occurred or is about to occur. This notification service enables effective communication by providing timely, relevant information that helps ensure reliable supply …
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PO (Purchase Order)
PO (Purchase Order) A Purchase Order (PO) is a legally binding document that initiates the procurement process between a buyer and seller. It serves as an agreement and communication of terms between the two parties, outlining quantities, products, prices, delivery dates, payment terms, and other requirements. The PO also acts as an authorization for the buyer to purchase goods or …
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POA (Price On Application)
Price On Application (POA) is an official business definition used in procurement. It refers to a pricing arrangement where the cost of an item or service is not specified but available on application. It allows businesses to work with vendors to determine the most competitive and fair price for supplies. POA provides flexibility for company-vendor relationships, as it allows for …
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POWL (Personal Object Work List)
POWL (Personal Object Work List) POWL, or Personal Object Work List, is a type of procurement that enables professional buyers to identify purchase requirements in the form of a list of objects. The list of items can range from products and services to documents and orders. This procurement process provides buyers with a standardized, efficient way to manage their workload …
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PPI (Producer Price Index)
The Producer Price Index (PPI) is a metric used to measure and analyze changes in the prices of goods and services sold by producers. It is a prevailing measure of inflation, helping businesses make more informed decisions about pricing and procurement strategies. The PPI takes into account the cost of raw materials, labor, overhead, and other factors in the production …
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PPP (Public Private Partnership)
Public-Private Partnerships (PPP) are collaborative agreements between a public agency and a private company, typically formed to finance, construct, or operate a public project. A PPP is a contractual arrangement between two or more public and private entities that bring together their respective resources and expertise to achieve shared goals or objectives. The goal of this partnership is to provide …
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PPV (Purchae Price Variance)
Purchase Price Variance (PPV) is the difference between the price budgeted for an item and the actual price paid for that item. In procurement, PPV can be used to measure the efficiency of purchasing decisions and indicate whether there is adequate control over pricing in the purchasing process. Companies should strive to achieve a PPV as close to zero as …
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PQQ (Pre-Qualification Questionnaire)
Pre-Qualification Questionnaires (PQQs) are documents used to evaluate potential vendors during the procurement process. These questionnaires provide a structured platform for evaluating a vendor’s qualifications, credentials, financial stability, and past successes. Through completion of the PQQ, vendors demonstrate their understanding of the project scope, timelines, budget, and deliverables. Vendors use this as an opportunity to showcase their abilities by providing …
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PR (Purchase Request)
The term PR in procurement stands for Purchase Request, a formal request to purchase goods or services from an external supplier. A PR must include all necessary details regarding the desired item or service, including quantity, specifications, delivery timeframe, and expected cost. This document is used to initiate the purchasing process, with the aim of ensuring that all stakeholders involved …
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PS (Procurement Services or Preferred Source)
Procurement Services (PS) is the official business term for activities related to purchasing goods or services. This includes sourcing, negotiating and selecting vendors, and optimizing procurement contracts for the best price and terms while still meeting the needs of the customer. It also involves managing preferred suppliers and getting the necessary approvals. PS helps organizations create greater efficiencies in their …
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PTP (Plan to Procure)
Plan-to-Procure (PTP) is a structured procurement approach wherein an organization takes a systematic, planned approach to identify and source the right services, goods, or materials necessary to meet its objectives. It involves evaluating current supplier contracts as well as market trends and conditions in order to make informed decisions on the best procurement plan. The PTP method allows organizations to …
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PIN (Prior Information Notice)
A Prior Information Notice (PIN) is an official business document issued by public procurement bodies to promote competition and ensure a fair process for procuring goods, services and works. It provides interested providers of such goods, services and works with the opportunity to present their offers prior to the formal opening of tenders. PINs can be used in any EU …
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PLC (Private limited company)
PLC (Private limited company) A Private Limited Company (PLC) is a business entity incorporated under the laws of a state or country. It is a limited liability company with fewer owners, often owned by individuals or other legal entities. PLCs are characterized by their independent management and limited transferability of ownership interests. They generally have greater access to capital than …
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PM (Purchasing Memorandum)
The Purchasing Memorandum (PM) is an official statement issued by a business or organization, outlining how their purchasing and procurement process should be conducted. It serves to clarify the steps for users of the system to purchase goods or services from outside sources, including details such as payment terms, preferred suppliers, acceptable quality standards, delivery requirements, and more. By following …
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PME (Pre-Market Engagement)
Pre-Market Engagement (PME) is a proactive approach in the procurement process that seeks to engage market participants prior to entering into formal tender activities. PME enables procurers to gain a better understanding of the current state of the market, better inform their procurement strategies, and enhance supplier engagement to meet needs more effectively. Through careful pre-market planning and analysis, stakeholders …
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PG (Procurement Guidelines)
Procurement Guidelines (PG) define the procurement processes and procedures to be followed by an organization. These guidelines are designed to protect the interests of the organization, determine best practices for purchasing decisions, optimize resources and promote accountability and transparency throughout the process. PGs also provide guidance on risk management, quality assurance and selection methods for goods, services and supplies. They …
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PGB (Piggyback)
Piggybacking, or PGB for short, is a term used to describe an arrangement between two entities to collaborate on the procurement of goods or services. Under this agreement, one entity will either act as a bidder or agent on behalf of the other, or both entities may bid simultaneously with an understanding that the successful bid will be shared among …
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P2I (Procure-To-Invoice)
Procure-To-Invoice (P2I) is an essential part of the procurement cycle that ensures every step involved in procuring goods or services is completed as quickly and efficiently as possible. P2I includes tasks such as creating purchase orders, tracking incoming shipments, verifying invoices, approving payment for goods/services received, and closing out purchase orders once the items have been received and paid for. …
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PA (Purchasing Agent)
The Purchasing Agent (PA) is a key figure in procurement, tasked with the responsibility of sourcing and purchasing goods and services that meet the needs of an organization. The PA acts as an intermediary between the buyer and the seller, negotiating favorable terms for both parties while ensuring a smooth and efficient transaction. As a professional, the PA should possess …
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PCard (Procurement Card)
A Procurement Card (PCard) is a corporate payment card that simplifies the procure-to-pay process. It enables organizations to make payments directly from their accounts and provides a level of oversight, control and security for business purchases. PCards offer businesses a more efficient way to manage and track procurement expenses, which can result in cost savings, improved cash flow and streamlined …
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PCI (Payment Card Industry [PCI-DSS])
The Payment Card Industry Data Security Standard (PCI-DSS) is a set of technical and operational requirements used to secure payment card data in business environments. It is an information security standard for organizations that store, process, or transmit cardholder data provided by payment providers such as Visa, MasterCard, American Express, Discover, and JCB. PCI-DSS is designed to help businesses protect …
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PDP (Plan Driven Procurement)
Plan Driven Procurement (PDP) is a comprehensive procurement approach for large and/or complex products or services that involves the development of well-defined execution plans before establishing the agreement. The PDP approach ensures that all stakeholders are given an opportunity to provide input, allowing for better decision making and higher quality agreements. It also ensures expectations are mutually understood before entering …
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CRM (Customer Relationship Management)
Customer Relationship Management (CRM) is an integrated technology suite that enables businesses to streamline and optimize their customer interactions. In procurement, CRM helps ensure the effective management of relationships between a business and its customers. The system allows a business to store, track and manage customer information and data in order to enhance communication with customers and provide better customer …
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CRP (Contractor Responsibility Program)
The Contractor Responsibility Program (CRP) is a comprehensive set of contractual terms and conditions designed to ensure that all contractors hired by an organization meet the highest standards of quality, safety, and ethical behavior. By adhering to these guidelines, organizations can protect themselves from financial and legal risks associated with contractor services. The CRP outlines the contractor’s expected responsibilities, including …
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CRPS (Contractor Responsibility Program System)
The Contractor Responsibility Program System (CRPS) is a comprehensive system designed to ensure that only responsible contractors are selected for federal procurement projects. It seeks to ensure that contractors meet legal, financial, and business compliance requirements in order to provide the best services or products for the government. The CRPS provides consistent guidance during the evaluation of contractors by assessing …
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CS (Commodity Specialist)
The Commodity Specialist (CS) in procurement is responsible for providing expert guidance and managing all aspects of the purchase, lease, or sale of goods or services for an organization. This includes researching new suppliers, negotiating favorable terms and prices, tracking purchasing trends, and developing procurement strategies. The CS must stay up to date on industry trends and regulations and maintain …
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CSR (Corporate Social Responsibility)
CSR (Corporate Social Responsibility) Corporate social responsibility (CSR) in procurement is the integration of social, environmental, human rights, and ethical considerations into decision-making and operations with the aim of creating a positive impact on society. By adhering to principles of CSR in procurement, companies can ensure that their goods and services are developed and acquired sustainably and in line with …
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DAP (Delivered at Place)
Delivered at Place (DAP) is a delivery model in which the supplier delivers the goods to a particular location specified by the buyer. This may include any costs of loading onto the vehicle, unloading from the vehicle, and transportation costs to the specified delivery place according to the International Chamber of Commerce’s Incoterms rules. DAP is one of the most …
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DAT (Delivered at Terminal)
DAT, short for “Delivered at Terminal”, is an international trade term used in procurement agreements. It refers to a sale in which goods are delivered when they are unloaded at the agreed upon terminal destination. This term implies that the seller carries out all of the transportation costs and delivers the goods unladen to the named terminal. In this instance, …
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DC (Designated Contract)
Designated Contract (DC) in procurement is a business term used to identify a preferred supplier. This designation is applied to the suppliers who provide the most advantageous goods and services to a particular organization, based on set criteria such as cost savings, quality performance, reduced lead times, and increased operational efficiency. By favoring this select group of suppliers, organizations can …
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DCED (Department of Community and Economic Development)
The Department of Community and Economic Development (DCED) is a Pennsylvania state agency charged with creating jobs, communities and economic opportunity. DCED works in partnership with local governments, businesses, and organizations to foster economic development and job growth, stimulate private investment, strengthen the fiscal health of local governments, promote innovation and entrepreneurship, and ensure responsible use of taxpayers’ money. DCED’s …
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DCIO (Deputy Chief Information Officer)
The Deputy Chief Information Officer (DCIO) is responsible for overseeing and steering the procurement of information technology products, services, and solutions across an organization. They are the primary liaison between the organization and vendors, ensuring that all contracts align with the organization’s vision and overall IT strategy. DCIOs must be highly knowledgeable in a variety of relevant computing technologies and …
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DCNR (Department of Conservation and Natural Resources)
The Department of Conservation and Natural Resources (DCNR) Procurement is responsible for developing formal, competitively sourced contracts to support the department’s mission of managing and protecting Pennsylvania’s natural resources. This includes providing leadership in environmental protection, acquisition and management of public lands, stewardship of state park and forest resources, and providing opportunities for citizens to enjoy the outdoors. DCNR Procurement …
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DDP (Delivered Duty Paid)
Delivered Duty Paid (DDP) is a business term used in international trade contracts, which requires the seller to deliver goods to the buyer, and pay all costs including import customs clearance and applicable taxes. The seller is also responsible for any damage to or losses of the goods incurred during transit. DDP contracts provide a greater degree of control than …
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DEP (Department of Environmental Protection)
The Department of Environmental Protection (DEP) is an agency of the government whose primary purpose is to ensure that the environment and natural resources of a given region are protected. This includes monitoring air and water quality, controlling environmental pollution, and creating sustainable policies for energy and land use. The DEP works in collaboration with other governmental organizations, local communities, …
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DGS (Department of General Services)
The Department of General Services (DGS) is a government organization responsible for the procurement of goods and services for public use. DGS ensures that all purchases are handled in a fair and legal manner, providing clear guidelines and regulations for the acquisition of various materials and resources. Moreover, DGS takes into account ethical considerations such as environmental sustainability and social …
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DHS (Department of Human Services)
The Department of Human Services (DHS) is a government agency that provides essential services in the areas of health, Mental Health, and Disabilities. DHS’s mission is to provide timely, seamless access to quality human services for individuals and families. On the procurement side, the purpose of DHS is to ensure that goods and services provided meet contracts, requirements, and regulations …
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DIFOT (Delivery In Full and On Time)
Delivery In Full and On Time (DIFOT) is a metric of success used in procurement that evaluates the delivery process from supplier to customer. It is a quality measure that determines if goods are received as per the agreed-upon specifications at the time and place agreed upon. DIFOT is essential for improving customer service and building trust between supplier and …
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DLA (Defense Logistics Agency)
The Defense Logistics Agency (DLA) is a combat support agency and one of the Department of Defense’s largest logistics organizations. It provides global logistics support to military forces, including storage, transportation, acquisition, supply management, and other related services. With its network of more than 3,500 major and minor suppliers, DLA ensures that the U.S. Armed Forces have the supplies and …
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P&L (Profit & Loss)
Profit and Loss (P&L) is a financial statement used in procurement to indicate the financial performance of an organization over a specified period of time. It is calculated by subtracting the total expenses of the business from its total income, resulting in either a profit or loss. P&L statements provide organizations with insights into how their cost-management strategies are impacting …
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DMAIC (Define Measure Analyse Improve Control)
DMAIC is a problem-solving approach used in the business world to drive improvement in procurement. It stands for Define, Measure, Analyse, Improve, and Control. DMAIC facilitates an organized method for accurately assessing processes, identifying inefficiencies, and developing solutions that are tailored to the specific needs of a business. The approach emphasizes the importance of data-driven decision making and an iterative …
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DMVA (Department of Military and Veterans Affairs)
The Department of Military and Veterans Affairs (DMVA) is an agency of the state government that provides a range of services to both veterans and members of the military. DMVA is responsible for procuring goods and services on behalf of the federal and state governments for the purpose of veterans’ benefits, medical care, readjustment, and other related activities. DMVA’s procurement …
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DMWBD (Division of Minority and Women’s Business Development)
The Division of Minority and Women’s Business Development (DMWBD) is an arm of the procurement department responsible for promoting equal opportunity in business, particularly in dealing with minority- and women-owned businesses. Through its various initiatives, DMWBD works to ensure that all entrepreneurs can access important resources like capital and contracting opportunities. The department also strives to empower small businesses by …
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DO (Delivery order)
A Delivery Order (DO) is a legal document issued by a buyer, either in the public or private sector, to confirm an order that has been placed with a supplier. A DO is typically used to order new goods, services or materials and defines the quantity, price and payment terms of items being purchased. It serves as a legally binding …
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DOC (Department of Corrections)
The Department of Corrections (DOC) is an agency that is responsible for the safe and secure housing of individuals who have been convicted of criminal offenses. DOC strives to provide social services, supervision, education, job placement, re-entry programs, and more to incarcerated individuals. Additionally, DOC is focused on providing effective correctional services in a partnership with law enforcement agencies and …
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DOD (Department of Defense)
The Department of Defense (DoD) defines procurement as the acquisition of goods, services, and construction on behalf of the DoD that are necessary for carrying out its mission. This includes administrative, acquisition-related activities, such as identifying a requirement; issuing contracts, orders, or delivery documents; receiving supplies or services; displaying property accountability; and paying for items acquired. All procurement activities must …
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DOL (Department of Labor)
The Department of Labor (DOL) is the federal agency responsible for regulating and enforcing labor law. Its mission is to ensure a fair and equitable workplace for all workers in the United States. In particular, when it comes to procurement, DOL requires that vendor contracts adhere to certain labor standards and that products purchased are not produced in a manner …
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DPS (Dynamic Purchasing System)
The Dynamic Purchasing System (DPS) is a method of public procurement used by governmental entities to ensure the delivery of quality goods, services, and works at competitive prices. The DPS framework functions as an electronic open market platform, where suppliers are able to submit bids for contracts in real-time on approved supplier lists. By engaging with multiple providers in this …
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DQ (Disqualification)
Disqualification in the procurement process is a form of administrative action that eliminates vendors from consideration for a particular contract or agreement based on factors such as noncompliance with regulations, unethical business practices, or failure to meet certain standards of quality. This action serves to protect both parties throughout their negotiations and ensure that any agreements are fair and are …
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EA (Enterprise Agreement)
An Enterprise Agreement (EA) is a business agreement between an organization and a supplier that outlines the parameters, pricing, and terms of engaging in long-term relationships. An EA provides mutual risk mitigation for both parties by establishing common contractual ground rules and effectively streamlining the procurement process. It gives organizations the opportunity to benefit from bulk discounts and supplier-negotiated rates …
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EAN (European Article Number or International Article Number)
The European Article Number (EAN) or International Article Number (IAN) is a widely used globally-recognized system for labelling and tracking products. EANs are unique identifying numbers that can be presented in either barcode format, allowing for easy automation of purchase orders in the procurement process. In addition to identifying individual items, EANs help promoters and retailers to keep track of …
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EBIT (Earnings Before Interest and Tax)
EBIT, or Earnings Before Interest and Taxes, is an official business accounting measure used to assess the profitability of a company’s operations before interest and taxes are taken into account. The measure can be used to understand the performance of a given venture or project by analyzing operational costs relative to income generated. In procurement, EBIT can be used to …
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EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortisation)
EBITDA is an acronym that stands for Earnings Before Interest, Taxes, Depreciation & Amortisation. In the context of procurement, EBITDA is a useful measure of a business’s financial performance since it takes into account key factors such as income and expenses, without having to take into account associated costs such as taxes or depreciation. By understanding a company’s EBITDA, businesses …
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EBT (Electronic Benefit Transfer)
Electronic Benefit Transfer (EBT) is a system of electronic funds transfer that enables state welfare departments to issue benefits such as food stamps, cash assistance, and other benefits via a debit card or direct deposit. EBT is used in the procurement process as a cost-effective way to distribute funds to individuals, businesses, and organizations. The program is designed to provide …
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ECR (Efficient Consumer Response)
Efficient Consumer Response (ECR) is a business initiative focused on streamlining the procurement process for consumer goods by encouraging collaboration and communication between organisations in the supply chain. Its aim is to reduce costs by eliminating unnecessary steps, improving product availability, and enhancing customer satisfaction. ECR focuses on creating an efficient flow of information, goods, and services from suppliers through …
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EDI (Electronic Data Interchange)
Electronic Data Interchange (EDI) is an automated system through which structured business documents are exchanged between organizations in a secure and reliable manner. EDI is widely used in procurement processes, as it helps to streamline the document exchange of data such as purchase orders, invoices, and shipping confirmations. By using this technology, companies can reduce manual effort and costs associated …
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EEO (Equal Employment Opportunity)
Equal Employment Opportunity (EEO) is the law of the land that ensures employers do not discriminate against individuals on the basis of their race, color, religion, sex, national origin, age, disability, or veteran status. The purpose of EEO in procurement is to provide a level playing field for all businesses, ensuring that there is fair access to procurement opportunities regardless …
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EFT (Electronic Fund Transfer)
Electronic Funds Transfer (EFT) is a process for transferring funds electronically from one financial institution to another. It enables businesses to securely and cost-effectively transfer funds between accounts, making purchases and payments more efficient. With EFT, businesses can cut paperwork, reduce time and effort associated with manual payment processing, and streamline their accounting processes. As an added security measure, EFT …
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EIN (Employer Identification Number)
The Employer Identification Number (EIN) is an official nine-digit code provided to a business or organization by the Internal Revenue Service (IRS). It is used primarily for identification purposes when filing taxes, establishing banking accounts, obtaining credit, and other financial transactions. As such, it is essential that businesses accurately provide their EIN when engaging in any procurement activities.
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EISSP (Enterprise IT Standard Selection Process)
EISSP (Enterprise IT Standard Selection Process) The Enterprise IT Standard Selection Process (EISSP) is a method of procurement within businesses that ensures the effective and efficient selection of appropriate standards for IT products, services, and processes. The process evaluates existing industry standards and weighs them against factors such as cost, complexity, quality, and reliability to determine which of these standards …
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EMAS (Eco-Management and Audit Scheme)
The Eco-Management and Audit Scheme (EMAS) is an official business certification which recognizes organizations that demonstrate leadership in environmental performance and sustainable development. It provides a framework for businesses to measure, improve, and communicate their environmental performance through rigorous self-evaluation, independent verification, and public reporting of the results. EMAS also measures economic and social sustainability, allowing businesses to align their …
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EO (Executive Order)
Executive Order (EO) is used to describe an official document issued by the President of the United States, which outlines their directives and policies for federal agencies. It is often used in the procurement process, as it allows federal agencies to utilize exceptions or waivers that are granted in the executive order, thereby streamlining internal processes and making them more …
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EOI (Expression of Interest)
An Expression of Interest, also known as an EOI, is a formal business document used by a prospective vendor in the procurement process. It signals to the buyer that they have the capabilities and capacity needed to execute a project or provide a service specified in the request for proposal (RFP). This document is usually an initial step in the …
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EOQ (Economic Order Quantity)
The Economic Order Quantity (EOQ) is a calculation used to define the optimal quantity for which to purchase inventory in a given procurement cycle. Utilizing the EOQ maximizes cost savings by minimizing ordering and holding costs. This process involves determining the minimum total cost of ordering and carrying inventory, while also accounting for any changes in market conditions that may …
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EPA (Environmental Protection Agency)
The Environmental Protection Agency (EPA) is a government agency that sets and enforces standards for pollution control in the United States. EPA regulation plays an important role in promoting long-term sustainability goals across various industries, including procurement. Procurement professionals must understand how these rules apply to their contracts and take steps to ensure compliance with relevant laws and regulations. The …
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EPC (Engineer Procure and Construct)
Engineer, Procure, and Construct (EPC) is a professional business term referring to the process of contracting for the design, construction, and installation of industrial infrastructure by a single contractor. This process utilizes engineering, procurement, and construction management services to provide turnkey solutions from a single source of responsibility to its clients. EPC is an efficient method of project delivery since …
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EPCM (Engineering Procurement and Construction Management)
Engineering Procurement and Construction Management (EPCM) is an integrated approach to project delivery, wherein the contractor takes responsibility for the technical expertise and resources needed to manage a construction project from concept to completion. This includes providing design services, overseeing the purchase of necessary materials, coordinating contractors, making sure milestones are met on schedule and within budget, and ensuring that …
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EPIC (Engineer Procure Install and Commission)
EPIC (Engineer, Procure, Install and Commission) is the process of acquiring materials and services from external sources for use in a project. The term is generally used to refer to large-scale projects such as construction or infrastructure development which involve contracting out significant elements of the work. In terms of procurement, it refers to the process of evaluating potential suppliers, …
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EPICOM (Engineer Procure Install Commission Operate and Maintain)
EPICOM, otherwise known as Engineer Procure Install Commission Operate and Maintain, is an official business definition of a process in procurement. This procedure involves the engineer designing a system or structure, procuring raw materials and equipment for the project, installing it on site, commissioning it to ensure it works correctly, operating the system, and maintaining it long-term. EPICOM enables organizations …
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EPO (Emergency purchase order)
An Emergency Purchase Order (EPO) is a procurement process that involves the expedited procurement and delivery of certain goods or services. It is used to procure items when there is an immediate need for the item/service and waiting for a regular purchase order (PO) is not an option. EPOs are usually requested due to safety concerns, product defects, and asset …
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ERP (Enterprise Resource Planning)
ERP (Enterprise Resource Planning) Enterprise Resource Planning (ERP) is an integrated information system designed to streamline and optimize the procurement processes of an organization. It allows for the coordination of multiple business functions, including supply chain management, inventory control, financial management, human resources, and customer service. Through its integrative approach, ERP reduces costs and complexity while increasing efficiency, accuracy, and …
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ESG (Environmental, Social & Governance)
Environmental, Social and Governance (ESG) is a concept used in the procurement process that considers the effect of an organization’s operations on the environment, social wellbeing, and corporate governance when making decisions. It revolves around three key areas: environmental, social and governance. The environmental factor looks at how a company manages its resources and treats the natural environment, including carbon …
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EVT (Electronic Value Transfer)
Electronic Value Transfer (EVT) is a form of procurement payment method which facilitates the transfer of funds from a buyer to a seller in an electronic format. EVT eliminates the need for physical documents and manual processing, resulting in less paperwork, faster transaction completion times, and greater cost savings. With enhanced security measures in place, EVT is a secure and …
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EXW (Ex Works)
EXW, or “Ex Works,” is a trading term used in international procurement that stipulates the seller is only responsible for delivering goods to their pre-determined place of departure. This means that the buyer is responsible for all costs associated with collecting the goods from the seller’s premises, plus any additional costs related to bringing the products to its final destination.
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FA (Framework Agreement)
A Framework Agreement (FA) in procurement is an arrangement between two or more parties, wherein the parties agree to certain terms and conditions for future transactions. These transactions can include anything from delivery of goods or services to order placement and payment. By entering into a FA, both parties define the framework that governs their future interactions, eliminating any ambiguities …
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FAA (Federal Aviation Administration)
The Federal Aviation Administration (FAA) is the official business regulatory agency under the U.S. Department of Transportation responsible for oversight and regulation of all aviation related activities, including aircraft operations, airport activities, and air traffic control. From a procurement perspective, the FAA sets regulatory standards for procurement, ensuring that air carriers receive fair and competitive prices for services and providing …
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FAR (Federal Acquisition Regulation)
The Federal Acquisition Regulation (FAR) is the official policy of the United States government for procuring goods and services from external sources. The FAR outlines standards that must be followed when conducting a procurement, including when to solicit bids, the evaluation process, contract awards, modification and cancellation of contracts, and dispute resolution procedures.
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FAS (Free Alongside Ship)
FAS (Free Alongside Ship) is an international trading term associated with the sale of goods. In this transaction, the seller is responsible for delivering the goods to a port of destination; the buyer is obligated to pay all expenses related to loading the goods onto a vessel designated and approved by the buyer. FAS defines that the risks and costs …
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FCA (Free Carrier)
The Free Carrier (FCA) terms in procurement refer to the contractual agreement between a buyer and seller, which stipulates the point at which ownership of the goods transfers from the seller to the buyer. According to this agreement, the seller must arrange for the goods to be delivered and made available to the buyer at an agreed-upon location, and is …
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FCL (Full Container Load)
FCL, or Full Container Load, is a term used in the procurement and transportation industry to refer to when goods are shipped in a dedicated container that is large enough to accommodate the entire shipment. This enables companies to minimize costs associated with shipping multiple packages, as well as the time spent dealing with handling multiple individual shipments. Additionally, FCL …
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FEIN (Federal Employer Identification Number)
The Federal Employer Identification Number (FEIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify businesses. It is used for tax identification purposes and is required on all government contract bids and procurement documents. In the procurement field, FEIN is essential for companies to be eligible to bid on Government contracts, receive payment from public …
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FERPA (Family Educational Rights and Privacy Act)
The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student educational records. This law applies to any organization that receives funding from the U.S. Department of Education and provides a set of regulations for how student data should be stored, accessed, and used. In procurement, FERPA outlines specific requirements around the collection, …
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FHWA (Federal Highway Administration)
The Federal Highway Administration (FHWA) is the leading agency responsible for federal-aid highways, highway safety and motor carrier safety in the United States. It operates through a network of divisions and offices located across the country to provide technical assistance to states, build and maintain America’s essential roads and bridges, and help ensure safe and efficient transportation for all users. …
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FIFO (First In, First Out)
FIFO (First In, First Out) is an ordering principle used for inventory and supply chain management. It states that the oldest items in stock should be sold or utilized first to ensure that they are not expired or out of date by the time they are sold/used. This method is often employed in purchasing processes to ensure efficiency and accountability. …
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FIN (Federal Identification Number)
The Federal Identification Number (FIN) is a unique nine-digit number assigned to businesses in the United States for the purpose of conducting official business with federal agencies. It is used primarily as a way to identify and track vendors who provide services or products to government departments, so that the proper payment can be issued. This number can also be …
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FISMA (Federal Information Security Management Act)
The Federal Information Security Management Act (FISMA) is a statutory framework established by the U.S. government to ensure the security of its related information systems. Under FISMA, federal agencies must create and maintain comprehensive information security plans that outline strategies for managing risks to data and ensuring compliance with applicable standards and regulations. In terms of procurement, FISMA requires agencies …
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FMCG (Fast-moving consumer goods)
Fast-moving consumer goods (FMCG) are products that have a rapid turnover, and relatively low cost. They are usually bought by consumers on an impulse basis, meaning that they are purchased in large quantities and disposed of quickly or consumed rapidly. Examples of FMCG include soft drinks, magazines, cigarettes, grocery items, cleaning products, and personal care products. In the realm of …
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OEM (Original Equipment Manufacturer)
Original Equipment Manufacturer (OEM) is used in procurement to describe when a company produces parts or components for another company that will use the parts and components in finished products. OEM suppliers are responsible for designing, engineering, producing, and testing products to the specifications required by their customer. This type of partnership enables companies to focus on core competencies while …
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OPEX (Operational Expenditure)
Operational Expenditure (OPEX) is defined in the context of business or procurement as the money spent on the day-to-day running and functioning of a company. This includes activities such as staff salaries, technology investments, operational costs related to goods/services, maintenance and rental costs, etc. OPEX is typically managed differently from Capital Expenditure (CAPEX), which are funds that are used for …
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FMP (Fair Market Price)
FMP stands for Fair Market Price and is a key process in efficient procurement management. It refers to the price that a buyer would be willing to pay for goods or services when trading in an open market, with both parties being fully aware of the terms of the transaction. FMP is used to provide pricing clarity for buyers and …
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FOB (Free On Board)
FOB, or “Free On Board”, is a common term used in the context of procurement to define when the title and responsibility for goods transfers from the seller to the buyer. In an FOB agreement, once the goods have been loaded onto the designated vessel or delivery method selected by the buyer, the risk and ownership of the goods transfer …
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FOIA (Freedom of Information Act)
The Freedom of Information Act (FOIA) is a federal law that gives the public access to records and documents maintained by government agencies. FOIA applies to all federal agencies and is designed to promote transparency in government operations. Through FOIA, individuals or businesses are able to request records related to their procurement activities from applicable government offices. This allows for …
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FPR (Final Procurement Record)
The Final Procurement Record (FPR) is a comprehensive document, serving as the official record of a procurement process. It is used to identify and track all related activities and actions, including but not limited to costs, contracting methods used, timeline analysis, and evaluation criteria. It provides a detailed overview of the entire procurement process in a professional tone and style. …
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FTE (Full Time Equivalent)
Full Time Equivalent (FTE) in procurement is a measure of the amount of work done by a single employee on a full-time basis. It is calculated by taking the total number of hours worked by an individual during a given period and dividing it by the number of hours needed to constitute one FTE. In other words, it is the …
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FTL (Full Truck Load)
FTL, also referred to as Full Truck Load, is a standardized form of bulk freight shipment in which a single delivery vehicle (i.e. truck) carries one full load from one origin to one destination. This mode of transport is advantageous for businesses looking to reduce the costs associated with managing multiple individual shipments while minimizing storage and labor costs related …
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FYE (Fiscal Year End)
Fiscal Year End (FYE) refers to the date on which an organization’s financial year ends. Procurement processes often require organizations to track spending and other organizational activities at the end of their fiscal year. To ensure that all expenses are accounted for in a timely and accurate fashion, it is common practice to conduct a thorough audit of all purchases …
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GDP (Gross Domestic Product)
Gross Domestic Product (GDP) is a measure of the economic output of a country or region. It is calculated by summing the market value of all goods and services produced within a specific period of time. In procurement, GDP is used as an indicator of economic growth, stability, and purchasing power, allowing decision-makers to develop strategies for taking advantage of …
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GHG (Greenhouse Gases)
Greenhouse gases (GHGs) are gaseous compounds in the atmosphere that absorb and emit infrared radiation, which leads to the trapping of heat and contributes to climate change. As a result, global policies such as the Paris Agreement have highlighted the need for businesses to measure and reduce their GHG emissions in order to achieve net-zero emissions by 2050. Procurement plays …
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GR (Goods receipt)
GR, or Goods Receipt, is the process of recognizing and confirming receipt of ordered products by a purchaser from a supplier. This process is essential in any procurement procedure, as it marks the end of the purchase order cycle and verifies to the purchasing department that goods have been received from suppliers in accordance with terms and conditions included in …
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