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Coordinated Universal Time (UTC) is the international standard for timekeeping. It is based on a 24-hour clock and is used as the official basis for performing governmental, legal, medical, financial, and other transactions worldwide. UTC ensures that all activities are conducted using an accurate, consistent, and reliable measure of time. In procurement, UTC serves as […]

Goods and Services Tax (GST) is a broad-based, value-added tax that is levied on most goods and services sold for domestic consumption. The GST is paid by consumers, however it is remitted to the government by the businesses selling the goods and services. In procurement, GST provides a more streamlined process by eliminating double taxation […]

An Information Commissioner’s Office (ICO) is an independent governmental authority responsible for protecting personal data and upholding information rights in the UK. The ICO oversees data protection, freedom of information, and privacy-related initiatives to ensure organizations are compliant with relevant laws and regulations. As part of its responsibilities, it has the power to issue fines, […]

The General Data Protection Regulation (GDPR) is an EU regulation that provides a set of standardised data protection laws which are designed to protect the personal data and privacy of individuals within the European Union. As a part of this regulation, procurement practices must ensure that any data they process is done so in a […]

A Master Service Agreement (MSA) is a legally-binding contract between two parties that outlines the scope of services to be provided, expectations around payment terms and conditions, and procedures for resolution should a dispute arise. It serves as an overarching document that lays out the framework for how both parties will operate together when engaging […]

The Conference of the Parties (COP) is a formal sub-group of the United Nations Framework Convention on Climate Change (UNFCCC) that meets every year to discuss strategies for mitigating climate change. The COP is responsible for verifying and enforcing the commitments made by each party in order to reduce global emissions. During these meetings, policy […]

The European Sustainability Reporting Standards (ESRS) is a set of guidelines designed to promote sustainable business practices and provide transparency in the procurement process. This framework ensures that organizations are adhering to ethical and socially responsible principles when engaging in procurement activities. The ESRS provides companies with a benchmark to ensure their operations are conducted […]

Electric Vehicles (EVs) are vehicles powered by one or more electric motors, instead of an internal combustion engine. This shift away from traditional fuel-based vehicles is rapidly gaining popularity in the automotive industry due to the potential increase in efficiency and reduction in emissions. In the procurement sector, having an understanding of EV technology and […]

Photovoltaics, or PV, is the term used to describe electricity generated through the use of solar cells or modules. PV technology is used to convert energy from the sun into usable electricity. PV systems have been around for decades and are becoming increasingly popular as they are a clean and renewable source of energy. The […]

BRIC is an acronym used in the context of business and procurement to refer to Brazil, Russia, India and China. These four countries are considered to be rapidly developing nations, offering a range of potential business opportunities, from sourcing materials to expanding market share. By incorporating these countries into procurement strategies, businesses can increase their […]

A Chief Technology Officer, or CTO, is a senior executive responsible for the company’s overall technology strategy. They oversee the development and implementation of all technological initiatives, ensuring that the organization is equipped with suitable resources to meet its objectives. The CTO is instrumental in developing innovative solutions that maximize efficiency and cost-effectiveness while introducing […]

FOC, or Free Of Charge, is a term used in procurement that refers to the delivery of a product or service without any additional cost. This type of transaction is most commonly used when receiving products or services as part of an existing contract or agreement. It is important to note that FOC’s may still […]

EMEA (Europe, Middle East and Africa) is a geographic region encompassing 54 countries across these three areas. In the context of procurement, EMEA refers to a business strategy that involves procuring supplies, goods, or services from vendors in Europe, the Middle East, and Africa. This strategy helps businesses expand and diversify their global supply chain […]

EPEAT (Electronic Product Environmental Assessment Tool) is a procurement standard used by organizations to assess the environmental performance of IT products. It helps organizations make informed decisions about their purchases, taking into account factors such as the materials used in production, packaging, and disposal practices. The standard also helps organizations meet sustainability goals by encouraging […]

The Chief Information Officer (CIO) is a senior-level executive responsible for managing and overseeing the efficient procurement, storage and use of information within an organization. They are responsible for establishing data management strategies and systems that support organizational goals while also ensuring compliance with industry regulations and standards. CIOs work closely with other departments to […]

Failure Mode and Effects Analysis (FMEA) is a risk management tool used in procurement to anticipate potential problems that may occur during the production or delivery of goods and services. By proactively identifying risks, FMEA helps organizations plan for contingencies and eliminate as much uncertainty as possible. The methodology consists of three key steps: systematically […]

1PL, or First Party Logistics, is a type of business arrangement in which the vendor is responsible for all transportation and other logistics services. This includes activities such as sourcing vendors, managing inventory, distribution, and even shipment to customers. Through 1PL, the vendor assumes full responsibility for supply chain management so that businesses can minimize […]

Fourth Party Logistics (4PL) is a business model that integrates all of the logistics and operations of an organization, including processes such as procurement, warehousing, distribution, shipping, and more. By utilizing a 4PL provider, businesses can access state-of-the-art supply chain solutions, developed from a strategic and holistic perspective. 4PL services are highly customizable to meet […]

ABC is a term used in the procurement process to denote the approved budget or financial figure for a contract. This figure is determined by conducting a cost assessment of the project or contract and setting an appropriate budget amount, based on the criteria outlined in the procurement document. The ABC must be met or […]

ACCO stands for Agency Chief Contracting Officer, and is a position in the procurement process. The ACCO is responsible for leading all contracting activities within their assigned agency, ensuring compliance with all applicable laws and regulations, and managing the organization’s resources to ensure highest value for taxpayer money. The ACCO works closely with operational departments […]

The Americans with Disabilities Act (ADA) is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and businesses that are open to the public. As it relates to the procurement process, ADA requires businesses to ensure their goods and services are accessible to […]

The American National Standards Institute (ANSI) is a non-profit organization that facilitates the development of voluntary industry standards for the procurement and product manufacturing process. ANSI’s standards help to ensure consistency across businesses while providing companies with resources and support to make sure they are adhering to applicable regulations. By promoting greater efficiency, compliance, and […]

Administrative Directives (ADs) are official statements from a governmental body or agency that provide guidelines and instructions related to the procurement process. This includes everything from outlining specific tendering processes, to providing guidance on contract management, to implementing quality control measures for the procurement cycle. ADs are crucial tools in ensuring that public procurement processes […]

An Annual Procurement Plan (APP) is a strategic document that outlines an organization’s objectives and strategies for procurement over a one-year period. It provides a framework for evaluating each potential purchase, enabling stakeholders to assess important factors such as timeliness, cost, quality and sustainability. The APP serves as a useful tool to ensure the organization […]

The American Society for Testing and Materials (ASTM) is an international standards organization that provides technical and scientific standards to help facilitate the procurement process. ASTM standards ensure a consistent level of quality across products and are used to test and measure materials, performance, and chemical properties. By using these standards, purchasers and vendors can […]

The Board of Commissioners of Public Grounds and Buildings (BCPG) is a regulatory organization responsible for the efficient management and procurement of public grounds and buildings. The BCPG works to maintain quality standards and ensure safe, secure, and cost-effective facilities in compliance with state and federal laws. The organization has stringent standards that must be […]

BSBO (Bureau of Small Business Opportunities) The Bureau of Small Business Opportunities (BSBO) is a business unit within the United States Department of Commerce that provides procurement services and resources to small businesses. By leveraging its expertise in contract management, contract negotiation, and supplier relations, the BSBO helps small businesses gain access to the markets […]

Leadership in Energy and Environmental Design (LEED) is a worldwide certification system that promotes sustainable construction, operations and maintenance practices. The LEED rating system measures the environmental performance of a building, awarding points based on criteria such as energy efficiency, water conservation, indoor air quality and materials selection. LEED-rated buildings use fewer resources, save money […]

A Material Safety Data Sheet (MSDS) is a document that communicates crucial information about hazardous materials and chemicals used in business operations. It is designed to help procurement, shipping, storage, and handling personnel identify, understand, and manage the risks related to the product. The MSDS outlines the characteristics of the material and provides hazard data, […]

Founded in 1972, the National Minority Supplier Development Council (NMSDC) is a non-profit organization dedicated to advancing business opportunities for minority-owned companies. It accomplishes this mission by connecting corporate America with qualified minority suppliers through its influential network of regional affiliates and corporate members. This allows NMSDC-certified suppliers to increase their visibility in the procurement […]

The Official Journal of the European Union (OJEU) is the primary source of procurement contracts and tenders for public authorities in the European Union. All EU-related public contracts with an estimated value over a certain threshold are required to be published in the OJEU in order to be compliant with regular EU procurement rules. This […]

The Office of Management and Budget (OMB) serves as the President’s chief policy advisor in setting out federal budget policies and the management of public funds. Within the executive branch, OMB is responsible for developing, coordinating and implementing government-wide financial policies related to procurement, budgeting, accounting, finance, and management systems. OMB also works with other […]

The Occupational Safety and Health Administration (OSHA) is a federal agency of the United States Department of Labor dedicated to assuring safe and healthful working conditions for workers. OSHA’s role in procurement is to ensure that goods and services purchased comply with applicable safety standards and regulations. As such, all procured products should meet minimum […]

Gross National Product (GNP) is a measure of an economy’s total economic output. It reflects the combined value of all goods and services produced by a nation within a given period, typically over the course of one year. In the context of procurement, GNP is important to consider because it can provide insight into the […]

OSS (Online Service System – Service used by IES to report system issues) OSS (Online Service System) is a web-based platform used by Information Exchange Services (IES) to manage customer service requests, report system issues and track the progress of resolution. It allows customers to access real-time data, interact with staff and benefit from a […]

Platform as a Service (PaaS) is an integrated technology platform that provides an environment for application development, deployment, and management. PaaS enables organizations to focus on building applications without the need to manage or maintain the underlying infrastructure, including hardware, operating systems, networking, storage, and other associated components. By leveraging the scalability of cloud computing, […]

Project-Based Information Technology Consulting Services (PBITS) is defined as a professional relationship between an organization and an external IT consulting firm focused on the delivery of specific IT projects. Through PBITS, organizations can access specialized technical expertise to successfully complete specific tasks or objectives. The consulting firm provides professional services with project management capabilities, technology […]

In the field of procurement, PEST is an acronym used to define the Political, Economic, Social and Technological environments in which a project takes place. It is a methodology for assessing the external factors that may influence the success or failure of a project. By understanding the impact of these different forces, organizations can develop […]

The Price Index (PI) is a metric used in procurement to measure and monitor the relative price performance of the items being purchased. It estimates the change in price for a specific item or set of items over time. This index serves as a barometer that can be used to identify market trends, compare vendor […]

PMT (Portfolio Management Tool) is a cloud-based system designed for the procurement process. It provides an integrated platform to analyze portfolio performance, drive decision-making, track projects, and manage risks associated with spending. PMT enables organizations to effectively manage sourcing activities through efficient supplier management and risk identification. The tool also allows users to monitor spend […]

PPCA (Profit, Price & Cost Analysis) Profit, Price and Cost Analysis (PPCA) is a business tool used in procurement to assess an item’s overall value. It involves examining the projected profit and revenue generated by a product or service, the price of acquisition, and the cost of production over its life cycle. PPCA helps procurement […]

PPE (Personal protective equipment) Personal protective equipment (PPE) refers to any clothing, equipment, or device designed to provide a layer of protection against various hazards encountered in the workplace. Such hazards can include physical, electrical, heat, chemicals, biohazards, and airborne particulate matter. PPE should be used in accordance with safety regulations and guidelines for individual […]

Purchase Price Variance (PPV) is a metric used in procurement to measure the difference between the expected and actual cost of materials purchased. It is typically calculated using the formula (Actual Cost – Expected Cost)/Expected Cost, and is expressed as a percentage. PPV helps to identify when goods are being purchased at prices higher than […]

The Single Transaction Summary Document (STSD) is a document that summarizes an individual procurement transaction. This document is used by all interested parties in the procurement process to track the progress of, and effectively manage transactions between buyers and suppliers. The STSD provides critical detail such as transaction type, agreement details, products or services purchased, […]

The United Nations Standard Products and Services Code (UNSPSC) is a procurement-focused classification system developed by the United Nations. It provides a standardized way for buyers and suppliers to quickly identify, search, and share the goods and services that they need in order to complete successful purchases. With UNSPSC, buyers and suppliers alike benefit from […]

Contract Lifecycle Management (CLM) is an integrated strategy for managing contracts from commissioning to completion. It comprises a set of coordinated, inter-related activities and processes used throughout the lifecycle of a contract to ensure the effective management, enforceability, and compliance of mutually established contractual obligations. CLM covers all aspects of contract management from risk assessment […]

The Prevailing Wage Rate (PWR) is a rate set by the government for certain types of occupations or job roles. It is an important factor in procurement as it serves to protect businesses competing for contracts from unfair wage and labor practices. PWR helps ensure that all employees are appropriately compensated for their work, which […]

Quality Assurance (QA) in procurement is a system of continuous improvement that ensures the quality of goods and services purchased from suppliers for companies. QA processes allow organizations to assess their suppliers and verify that the products they are buying meet the specified standards and regulations. It involves reviewing current practices, analyzing potential deficiencies, and […]

Quality Control (QC) is a comprehensive system of procedures, standards and processes that ensure that products produced by a company meet or exceed specified requirements. QC is essential for maximizing customer satisfaction and the quality of a company’s output, ensuring that products are fit for purpose. QC processes involve tasks such as product testing, inspection, […]

A Quality Management System (QMS) is a formalized system used to manage and review the quality of goods during the procurement process. It is designed to ensure compliance with legal, regulatory, and contractual requirements as well as any customer-specific expectations. A QMS follows a set of standard operating procedures and focuses on continuous improvement in […]

Qualified Product Lists (QPLs) are a crucial part of the procurement process, providing businesses with assurance that they are buying qualified and safe products. QPLs contain an officially approved and regularly updated list of goods or services that can be used to fulfill a project. All products are subject to rigorous testing in order to […]

The term Request for Comment (RFC) is used in business and procurement to describe the formal process of submitting an official request for feedback or comment from interested parties. This feedback is then used to assess the suitability of a proposed solution before it is implemented. RFCs are often issued in situations where stakeholders have […]

Request For Information (RFI) is an officially recognized procurement method used by organizations in order to gather necessary information from external sources. Through the RFI process, organizations solicit vendor responses that provide valuable insight on potential products, services, and solutions as they relate to their needs. By doing so, organizations are able to make well-informed […]

Radio-Frequency Identification (RFID) is an automated technology used in the procurement process to track and manage the movement of goods and inventory. RFID systems use radio frequency waves to identify, locate, and process data from tagged objects without relying on line-of-sight scanning or physical handling. This technology helps streamline the supply chain by providing businesses […]

A Request For Proposal (RFP) is a formal, structured solicitation from a business or organization for goods and/or services. The RFP outlines the requirements for a potential vendor to submit a proposal with their cost estimates and technical specifications in order to be considered for an award of contract. It provides vendors with key information […]