Doc-20181020-wa0018.docx

1. PROCUREMENT TERMS Award: The process for Awards includes all activities from the time a Vendor is selected to the time that the Contract or Purchase Order is executed. Vendors can be selected through a Solicitation process (i.e. the lowest-priced Bidder or highest-scoring Proponent), a Corporate Supply Arrangement, a Standing Offer, a Pre-Qualification List, or a Direct Award process. Baseline: This is the original approved plan (for a project, Contract or an activity) plus or minus approved changes. There can be different Baselines such as a cost Baseline, schedule Baseline or Performance Measurement Baseline. Benchmarking: is a process of comparing an organization's services, processes, products and performance standards against other recognized and accepted organizational, industry or public sector standards. Bid: A Bid is submitted in response to an Invitation to Quote (ITQ) or an Invitation to Tender (ITT) or Request for Proposals. It is based on detailed Specifications or plans provided by the purchaser, who wants specific prices or costs for the delivery of a particular good or service or construction project. Bid Bond: Bid Bonds are used for construction projects. In a Bid Bond, a surety company agrees to pay to the purchaser the lesser of the value of the bond or the difference between a successful Bidder’s Bid and the next lowest Bid if the successful Bidder withdraws from the process for any reason other than those permitted in the Solicitation document. A Bid Bond provides security that a project can be undertaken if the successful Bidder elects not to do the work. The standard Bid Bond value is 5 or 10 percent of the Bid value. Bidder: A Bidder is a Vendor who submits or intends to submit a Bid to a price-based Solicitation (i.e. an Invitation to Tender or Invitation to quote). Budget: This is a project's detailed, time-based estimate of the costs of all of the project's resources. Constraint: This refers to a project restriction that may limit the extent of a project's success. Limitations could include time, cost, Scope complexity, qualified resources, and performance / quality measures. Continuing Service Agreement: This is a Contract between the Procuring Agency or department and a Contractor for the delivery of service. Continuing Service Agreements do not have an end date, but rather are renewed each year, subject to the Procuring Agency continuing need for the services and Budget availability. Contract: This is a legal agreement between a buyer and a seller whereby the buyer agrees to pay for or contribute to the cost of services and / or goods delivered by the seller.

Contract Ceiling Price: This is the maximum total cost of a Contract, including related expenses, agreed to by both parties, based on specified Terms of Reference for the work to be performed. Every contract must include a maximum contract ceiling price. Contract Closeout: Contract Closeout refers to all activities to close a Contract once all Deliverables have been received and payment has been issued. Contractor: A Contractor is the legal entity (organization or individual) who has entered into a Contract with the buyer to deliver goods and / or services, as described in the Contract. A Vendor becomes a Contractor after the Contract is fully executed by all parties. If a Contract includes Subcontractors, the Contractor may be called the Prime Contractor. See the related terms Independent Contractor and Prime Contractor. Cost / Benefit Analysis (Justification): A Cost / Benefit Analysis is a comparative assessment of the project's expected benefits to the projected costs for implementing a project. Direct Costs: These are the costs incurred directly by a Procurement project, such as project team member wages, specific travel costs, special equipment and out-sourcing costs (project specific Contracts). Holdback: A Holdback is a portion of a payment(s) under Contract that is withheld until certain conditions relating to satisfactory performance and / or liability (i.e. third party liability), as determined by the Contract, have been met. Indirect Costs: Indirect Costs are overhead costs that are allocated to the Procurement project by the organization as a cost of doing business (e.g. the costs associated with the building, offices, heating, lighting, etc. that would be incurred whether the project or Contract was being performed or not). Indirect Costs are usually calculated as a percentage of Direct Costs. Performance Bond: Performance Bonds are usually associated with construction Contracts. The form and amount must be specified in the Contract. Performance Bonds should be received before work commences. A Performance Bond is used to pay for the costs for another Contractor to rectify and/or complete the services required in the event that of a default by the Contractor (i.e., if the original Contractor breaches the terms and Specifications of the original Contract). Purchase Order (PO): A PO is the purchaser's written offer to a Vendor formally stating all terms and conditions of a proposed transaction. POs are usually used to purchase goods. By accepting the PO, the Vendor agrees to supply the specified goods at the price and by the delivery date indicated. Qualified Supplier: A Qualified Supplier is a Vendor who has responded to a Request for Qualifications and, having met the qualification requirements, has been included in the Pre-Qualification List.

Request for Information (RFI): This is a document issued before a formal Solicitation, where Vendors are provided with a general or preliminary description or need, and are requested to provide the buyer / owner with additional information that may assist in preparing a subsequent Solicitation document. The buyer / owner can use the information provided through the RFI to make decisions on what to buy, to determine an appropriate Budget, and / or to select an appropriate Solicitation process. No Contract Awards are made directly from an RFI. Request for Proposals (RFP): This is a request for Vendors to submit Proposals that include information on their relevant qualifications or experience, their proposed approach or methodology, and usually the price they would charge to provide a good or service in response to an identified problem, requirement or Objective. RFPs include predefined criteria against which Proposals will be evaluated. Subject to the express terms of the Request for Proposals, the Contract is normally awarded to the Proponent whose Proposal meets all RFP Mandatory Criteria, terms and conditions, and achieves the highest overall rating of all Weighted Criteria specified in the Solicitation. Request for Quotation (RFQ): This is a request, verbal or written, provided to Vendors to submit a Bid for goods or services desired by the purchaser / buyer. The selection of the Successful Bidder is usually based on the lowest qualified Bid that meets specific Mandatory Criteria as stipulated by the Request for Quotation. Solicitation: A Solicitation is any competitive process whereby one or more Vendors compete for a Contract, Purchase Order, Standing and Request for Proposals (RFP). Terms of Reference: This document provides the framework and Planning elements that are required to successfully plan project Scope. The Terms of Reference also includes Solicitation and Contract Award processes, project implementation processes, including Contract Monitoring and reporting requirements. It is sometimes referred to as the Contract Management Plan. Unsolicited Proposals (UP): This is an offer initiated from a Vendor that was not solicited through a competitive process. An Unsolicited Proposal may include unique or innovative goods and / or services that are not commonly known or available in the marketplace. Vendor: A Vendor is an organization or individual that sells goods and / or services to its customers. A Vendor is also known as a supplier or a service provider.

2. Def: Bid: A bid is often used to get new business or repeat business. Therefore, a bid will be a joint effort from members of the organization of various levels of authority. A bid will usually be handled by a bid manager, who interacts with experts from technical to legal issues. Bid is also the term used when documenting an offer submitted in response to a request or invitation to tender.

Tender: Tender can be used in place of bid, while meaning basically the same thing. Mostly, the term bid is used by the organization seeking the project, while the term tender is more often used by the organization seeking the contract. Just as there is a bid manager, there is also a position for the tender manager. A project manager can often do this work as well. Proposal: A proposal is a written document, drafted by the seller to a prospected buyer. It is one step in a more complicated sales process. Proposals tend to be more clientbased and are highly tailored with solutions to the buyer’s requirements. They are created by a proposal writer who writes to the client’s or buyer’s needs. They can use the help of a technical specialist, who is not selling as much as focusing on design and functionality. If the work is very complex, a technical writer might be employed to more expertly and clearly address the technical aspects of the proposal.

3. Def. EOI: A call to potential providers of goods and/or services to register interest in supplying them. Commonly a document describing requirements or specifications and seeking information from potential providers that demonstrate their ability to meet those requirements. RFP: A request for proposal is an early stage in a procurement process issuing an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. RFI: A request for information (RFI) is a proposal requested from a potential seller or a service provider to determine what products and services are potentially available in the marketplace to meet a buyer's needs and to know the capability of a seller in terms of offerings and strengths of the seller. RFQ: A request for quotation (RFQ) is used when discussions with bidders are not required (mainly when the specifications of a product or service are already known) and when price is the main or only factor in selecting the successful bidder.