| Commonly Used Public Purchasing Terms & Definitions |
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Terms And Definitions
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| Advertising |
A form of public notice of an intended purchase. The placement of a notice in a newspaper
or other publication according to legal requirements to inform the public that the
government is requesting bids on a specific purchase it intends to make. |
| Assembled |
The process of putting together all component parts of an item of equipment by the
manufacturer where the assembly plant is located within the territorial borders of the state
of Louisiana. "Assembled" shall not mean the reassembly of parts packed for shipping
purposes. Reference LA R.S 39:1591(9) Also means the assembly of computers and related
equipment when such assembly takes place in Louisiana. Reference LA R.S. 38:2251.A(1) |
| Bid |
The executed document submitted by a Bidder in response to an Invitation for Bids, a
Request for Quotation or a multi-step bidding procedure. |
| Bidding, Competitive |
The submission of prices by individuals or firms competing for a contract, privilege, or
right to supply merchandise or services. |
| Brand Name Specification |
A specification that cites brand name, model number, or some other designation that
identifies a specific product to be offered exclusive of others. |
| Change Order |
A written order directing the contractor to alter, deviate, add or delete to a preexisting
purchase order or contract. |
| Competition |
The process by which two or more vendors vie to secure the business of a purchaser by
offering the most favorable terms as to price, quality, delivery and/or service. |
| Contract |
All types of state agreements, regardless of what they may be called for the purchase of
supplies, services or major repairs. Also, an "Agreement". It includes awards and notices
of award, leases, letter contracts, and purchase orders. |
| Emergency Purchase |
A purchase made without following normal purchasing procedures in order to obtain goods
or services to meet an urgent or unexpected requirement where health and public safety
or the conservation of public resources is at risk. |
| Equal, or Equivalent |
A phrase used to indicate the acceptability of products of similar or superior function,
purpose, design, and/or performance. |
| Equipment |
Items that are tangible non-consumable property, as distinguished from supplies. For
purposes of expensing, tangible non-consumable items valued in excess of $100. |
| Formal Bid |
A bid which must be submitted in a sealed envelope and in conformance with a prescribed
format, and to be opened at a specified time. See "Sealed Bid". |
| Informal Bid |
An unsealed competitive offer conveyed by letter, telephone, facsimile, or other means and
under conditions different from those required for formal bidding. |
| Invitation to Bid (ITB) or Invitation for Bids (IFB) |
(1) The solicitation document used for competitive sealed bidding, the customary method
used by state and local governments for the purchase of equipment, materials, supplies,
and construction. (2) All documents, whether attached or incorporated by reference,
utilized for soliciting bids. |
| Major Repairs |
Those repairs made to movable or immovable equipment with the purpose of fixing the item to
an operational status. |
| Manufactured |
The process of making a product suitable for use from raw materials by hand or by
machinery. Reference 38:2251.A(3) |
| May |
Denotes the permissive (desired characteristics). Also, the use of "should" means the
same. |
| Negotiations, Competitive |
A method for contracting for goods and services, whereby proposals are solicited from
qualified suppliers, and the offer deemed by the awarding authority to be most advantageous
in terms of criteria as designated in the Request for Proposals, may be further revised with
the successful offeror in terms and non-mandatory requirements, but not price. |
| Open Market Purchase |
A one-time purchase made non-competitively or after solicitation of competitive quotes/bids
other than under a term contract. |
| Produced |
The process of manufacturing, planting, cultivating, growing, or harvesting. Reference
LA R.S. 38:2251.A(7) |
| Proposal |
The executed document submitted by an offeror in reponse to a Request for Proposal (and
the basis for subsequent negotiation). |
| Proprietary Purchase |
A purchase of an item that is available from only one manufacturer. Differentiated from a
sole source in that the manufacturer may distribute item through one or more distributors. |
| Public Bid Opening |
The process of opening and reading bids, conducted at the time and place specified in the
Invitation for Bids and/or the advertisement, and in the presence of anyone who wishes to
attend. |
| Public Work |
The erection, construction, alteration, improvement, or repair of any public facility
or immovable property owned, used, or leased by a public entity. |
| Purchase Description |
The words used in a solicitation to describe the supplies, services, or construction to be
purchased, and includes specifications attached to, or made part of, the solicitation.
Unless the context requires otherwise, the terms "purchasing description", "purchase
specification" and "specification" may be used interchangeably. |
| Quotation |
A statement of price, terms of sale, and description of goods or services offered by a
prospective seller to a prospective purchaser, usually for purchases below the amount
requiring formal bidding. The stating of the current price of a commodity, or the price
so stated. |
| Request for Information (RFI) |
The document used in informal, uncompetitive solicitation of information, data, comments,
or reactions from possible suppliers preceding the issuance of a Request for Proposals or
a multi-step bidding procedure. |
| Request for Proposal (RFP) |
(1) All documents, whether attached or incorporated by reference, utilized for soliciting
(competitive) proposals. The RFP procedure permits negotiation of proposals and terms as
distinguished from competitive bidding and an Invitation for Bids. (2) The solicitation
document used in the competitive negotiation process. The procedure allows changes to be
made after proposals are opened and contemplates that the nature of the proposals and/or
terms offered will be negotiated most responsive offeror prior to finalizing a contract. |
| Request for Quotation (RFQ) |
The document generally used for seeking competition on small purchases or on any purchase
lower than the amount that requires competitive sealed bidding. Can be used for obtaining
price and delivery information for sole-source and emergencies. |
| Requisition |
(1) An internal document by which a using department or agency requests the purchasing
department to initiate a procurement. May also be a form used for obtaining supplies
from a storeroom or warehouse. (2)The information transmitted by a using department or
agency requesting the central purchasing office to effect a contract for a particular
need or group of needs. The request may include, but is not limited to, a performance or
technical description of the requested item, delivery schedule, transportation mode,
criteria for evaluation, suggested sources of supply, and information related to the making
of any written determination required by policy or procedure. |
| Sealed Bid |
A bid which has been submitted in a sealed envelope to prevent its contents being revealed
or known before the deadline for the submission of all bids; usually required by law or
rule on major procurements to enhance fair competition. |
| Services |
The furnishing of labor, time, or effort by a contractor, not involving the delivery of a
specific end product other than reports which are merely incidental to the required
performance. |
| Shall |
Denotes the imperative (mandatory requirements). Also, the use of "will" and "must" means
the same. |
| Sole Source Procurement |
An award for a commodity or service to the only known capable supplier, occasioned by the
unique nature of the requirements, the supplier, or market conditions.
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| Solicitation |
The process of notifying prospective bidders or offerors that the jurisdiction wishes to
receive bids for furnishing goods and services. The process may consist of public
advertising, mailing Invitations for Bids, posting notices, telephone or facsimile
messages to prospective bidders, or all of these. |
| Specification |
A description of what the purchase seeks to buy, and consequently, what a bidder must be
responsive to in order to be considered for award of a contract. A specification may be a
description of the physical or functional characteristics, or the nature of, a supply or
service. It may include a description of any requirements for inspecting, testing, or
preparing a supply or service item for delivery. A purchase description. |
| Supplies |
Items that are consumed or expended in the course of being used, as distinguished from equipment. |
| Term Contract |
A technique by which a source of supply is established for a specific period of time. Term
contracts characteristically are established through competitive sealed bidding and usually
are based on indefinite quantities to be ordered "as needed", although such contracts can
specify definite quantities with deliveries extended over the contract period. |
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