Term
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Definition
| enduring beliefs or ideals shared by public procurement and our stakeholders about what is good or desirable and what is not in our actions. |
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Term
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Definition
| long-term, tangible, attainable targets for an organization. |
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Term
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Definition
| specific, measurable and observable results of an organization's activity that advance the organization toward its goal. |
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Term
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Definition
| plans, courses of action, or governing principles which establish the general parameters for the organization to follow in carrying out its responsibilities. |
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Term
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Definition
| Specific, Measurable, Assignable, Realistic and Time-based. |
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Term
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Definition
obtain the right materials or services (meeting quality requirements)
in the right quantity for delivery
at the right time
to the right place
from the right source (a responsive and responsible bidder)
with the right service
at the right price |
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Term
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Definition
| A measure that assesses the severity of a problem or the scope of work to be performed. |
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Term
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Definition
| A measure that indicates the amount of work which must be performed to accomplish a specific task. |
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Term
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Definition
| A measure that compares resources used with results obtained. Examples include ratio of procurement department operating expenses to dollar purchases and ratio of procurement personnel to total employees. |
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Term
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Definition
| A measure that determines how well a program or activity meets an objective or fulfills a need. This measure is results oriented and is the most useful in determining priorities and allocating resources. |
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Term
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Definition
| Statements by a governmental body to implement, interpret, or prescribe law or policy, or to describe organization, procedure, or practice, often promulgated in accordance with an administrative procedures act. |
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Term
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Definition
| A governing principle or plan which established the general parameters for the organization to follow when carrying out its responsibilities. |
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Term
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Definition
| The detailed series of related activities that must be completed, and the order in which they must be done, to accomplish a given task. |
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Term
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Definition
| The detailed series of related activities that must be completed, and the order in which they must be done, to accomplish a given task. |
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Term
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Definition
| Generally realized when manufacturer is able to lower its material or labor costs used to make its products; interchangeably used to indicate a lower price paid by the buyer from what was previously paid. |
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Term
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Definition
| Generally realized when manufacturer is able to lower its material or labor costs used to make its products; interchangeably used to indicate a lower price paid by the buyer from what was previously paid. |
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Term
| Effectiveness look on work computer budgeting |
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Definition
| the allocation of scare resources among competing demands |
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Term
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Definition
| controls the rate of spending authorized by an appropriation |
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Term
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Definition
| controls specific use of the monies appropriated |
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Term
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Definition
| income is not counted until cash (or check) is actually received, and expenses are not counted until they are actually paid. |
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Term
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Definition
| Transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. |
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Term
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Definition
| To encumber funds means to set aside or commit funds for a specified future expenditure. |
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Term
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Definition
| a good budget should articulate the program priorities and golas |
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Term
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Definition
| a good budget should indicate the allocation of resources and the performance objectives and measures of the various departments, programs, and activities. |
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Term
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Definition
| a good finacial plant or budget should indicate the sources of revenue or any debt financing |
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Term
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Definition
| a good budget should stimulate dialogue among the public about important budge issues |
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Term
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Definition
| an independent fiscal entity with assets, liabilities, reserves, a residual balance or equity, and revenues and expenditures for undertaking activities. |
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Term
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Definition
| the authorization for spending expires at the end of the fiscal period |
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Term
| non-expendable or revolving funds |
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Definition
| spending beyond the fiscal year is allowed with reauthorization |
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Term
| GAAP (generally accepted accounting principles) |
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Definition
| uniform minimum standard for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. |
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Term
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Definition
| finance the activities most citizens associate with governments (police, fire, procurement, public works) |
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Term
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Definition
general funds
special revenue funds
capital project funds
debt service fund |
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Term
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Definition
| used to track revenues and expenditures that support all services not assigned to other funds |
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Term
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Definition
| provide services financed from various specifically designated revenue sources, such as recreation fees used to support a specific activity |
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Term
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Definition
| used to acquire major assets with a useful life of more than one year, which may be financed by some form of long-term debt |
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Term
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Definition
| receive resources from other funds, taxes, grants, or proceeds from long-term debt and are used to pay the principal and interest on the debt. |
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Term
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Definition
| used when governments engage in activities similar to private business |
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Term
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Definition
enterprise funds
internal service funds |
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Term
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Definition
| control various utilities (water, water reclamation, storm water, electric) and other entities providing service financed through user charges |
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Term
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Definition
| used by governmental organizations that provide services to other units of the government by charging fees to cover their operating costs |
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Term
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Definition
| allow the government to act as a custodian of assets that must be disbursed to individual, private, and public entities, or to other funds. Ex: pension funds and the collection of lottery proceeds for distribution. |
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Term
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Definition
| a process in which organizations measure various aspects of their processes in relation to best practice, usually within their own sector |
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Term
| process alignment to organization goals |
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Definition
| goals should be the key driver for any process. All processes, people and resources should be aligned to business goals. |
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Term
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Definition
| process improvement focuses on incorporating cost-effective and goal-oriented processes. The purpose is to eliminate non-value-added activities and focus on value-added activities |
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Term
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Definition
| changing customer needs emphasize the importance of processes being aligned to achieve higher customer satisfaction. |
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Term
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Definition
| benchmarks must be quantifiable, attainable, and realistic |
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Term
| establish who owns a process |
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Definition
| process owners must be placed in charge of a process, be responsible for the performance and changes in the process, and be responsible for the success or failure of a process. |
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Term
| build control points into a process |
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Definition
| there should be frequent points where the process owners and customers/stakeholders decide if the process is meeting current benchmarks and what they should do to improve the process. This includes halting the process if it fails to meet realistic benchmarks. |
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Term
| standardize similar processes |
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Definition
| a standardized system of preparing processes saves time, effort, staff hours, and money |
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Term
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Definition
| the change process should be done repeatedly, not merely once. Waiting for a perfect solution would mean no solution. |
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Term
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Definition
| don't waste time taking process measurements if they are not going to be used to improve the process. The process slogan is worth remembering: "No process without measurement, not measurement without analysis, not analysis without action." |
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Term
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Definition
| seeks to improve the quality of process outputs by identifying and removing the causes of errors and minimizing variability in business processes. |
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Term
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Definition
| a method that focuses on providing service in the most efficient manner by improving flow and eliminating waste |
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Term
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Definition
| a family of standards and guidelines for quality in the manufacturing and service industries from the International Organization for Standardization. |
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Term
| Total Quality Management (TQM) |
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Definition
| a management philosophy that seeks to integrate all organizational functions to focus on meeting customer needs and organizational objectives. |
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Term
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Definition
| its basic tenet is the elimination of waste: the waste of overproduction, unneeded motion, transporation, excessive inventory and production and labor time. |
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Term
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Definition
| a process whereby a procurement organization identifies world-class or best in class organizations and then compares its practices, policies and performance outcomes against those organizations |
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Term
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Definition
| defined as the result of a particular standardization effort, approved by the recognized authority. |
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Term
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Definition
| the adoption of a single product or group of products to be used by different organizations or all parts of one organization. |
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Term
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Definition
| involves screening the agency's inventory in order to determine which items should be consolidated, updated or no longer maintained in inventory. Its intent is to intentionall reduce the number and variety of inventory items and eliminate duplication. |
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Term
| Standardization Committee |
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Definition
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Term
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Definition
| typically illustrated as evasion and indirect misrepresentation, just short of actual fraud. Should be avoided. |
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Term
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Definition
Responsibility to your employer
Conflict of interest (avoid)
Perception (is fact)
Gratuities (don't take them)
Confidential information (keep it)
Relationship w/the supplier (keep it professional)
Relationships w/other agencies and organizations (don't exert leverage)
Relationship w/professional purchasing organizations and associations (represent the organization in a professional and ethical manner) |
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Term
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Definition
| a margin of profit that is added to labor, material, and overhead costs. |
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Term
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Definition
| focuses on the supply and demand principle. |
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Term
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Definition
| the qty of goods available for sale at a given price, and the lvl of consumer need for those goods at a given price. |
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Term
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Definition
| based on the perceived or actual value gained by the buyer. |
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Term
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Definition
| price setting based upon analysis and research complied from the targeted market. Ex: a manu may offer a basic, no-frills model at the low end of the price spectrum, a mid-range model w/limited upgrades designed to appeal to a broad base of consumers, and a luxury model with many features focused on the high-end market. |
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Term
| total cost of ownership (TCO) |
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Definition
| -a measure of all of the cost components associated with the procurement of a product or service |
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Term
| total cost of ownership (TCO) |
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Definition
| - the sum of all fixed and variable costs attributed to a product or service |
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Term
| total cost of ownership (TCO) |
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Definition
| - a philosophy for understanding all supply chain related costs of doing business with a particular supplier for a particular good or service. |
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Term
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Definition
| one of most commonly used methods to determine total cost of ownership |
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Term
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Definition
| a cost analysis tool that incorporates the purchase price of an item as well as all operating and related costs over the life of the item (including maintenance, downtime, energy costs, salvage value). |
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Term
| make, lease, or buy concepts three principles |
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Definition
| compare apples to apples evaluate only costs that differ assure costs evaluated are for the same level of service and quality |
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Term
| four-step approach to make or buy analysis |
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Definition
1. define outputs to be analyzed
2. determine costs to be saved using an outside provider
3. compute cost of contracting from private sector
4. compare difference in net cost and made the final decision. |
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Term
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Definition
- short term
- fixed period of time much less than the life of the equipment
- used for items w/ rapid obsolescence
- used when budget won't allow purchase |
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Term
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Definition
- long-term
- a fixed period of time just short of approx life of the equipmnet. |
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Term
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Definition
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Term
| Assignment clauses are often included in bids and contracts. What are they and why do we need them? |
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Definition
http://www.nolo.com/legal-encyclopedia/assignment-of-contract-basics-32643.html
An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee").
They are needed in order to allow or disallow the handing off of a contract. |
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Term
| three key challenges in inventory management |
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Definition
demand level
supplier lead time
inventory costs |
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Term
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Definition
| agreement for a supplier to provide the purchaser's requirement for items or svcs on an "as needed" basis. |
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Term
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Definition
| contract that consolidates requirements by pre-establishing a bid opening date, such as monthly or quarterly. |
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Term
| cost plus award fee contract |
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Definition
| a contract that provides for a base amount fee fixed t inception of a contract and an additional fee at the time of award. |
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Term
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Definition
| a contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. |
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Term
| fixed price contracts include: |
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Definition
firm fixed price
fixed price with economic adjustment fixed price re-determination |
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Term
| fixed price, price re-determination |
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Definition
| provides for a firm fixed price for a stated period of time after which the price may be predetermined for a subsequent period of time. |
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Term
| Name four sources for developing a potential vendor list, not including your agency's vendor data base. |
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Definition
The Internet
Other government entities
Trade shows
NIGP |
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Term
| Which of the following statements best describes a brand name specification? A. Establishes the Qualified Products List (QPL) characteristics, in significant details, that an item must possess. B. Sets forth the capabilities and performance characteristics. C. Describes the standard of quality and performance with a unique qualifier. D. Describes all physical and functional characteristics of a commercial standard specification. |
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Definition
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Term
An entity issues cell phones for its employees. Initially, employees could request a make and model of their choosing. Now the entity purchases several different types of phones to meet employees’ requirements. This is causing inefficiencies. What action can be taken to address and correct the inefficiencies?
A. Creation of proprietary specifications
B. Sole sourcing
C. Bench-marking
D. Standardization |
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Definition
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Term
| Compare/contrast stable and unstable markets. Name two things to consider in conducting a solicitation under one or the other. |
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Definition
| Stable markets are characterized by off the shelf products whose prices are set by supply and demand and are reasonably fixed in the long term. Unstable markets are characterized by products affected by politics, weather and speculation such as grains, oil and metals. Their prices are not set by supply and demand and tend to be all over the place in the short term. Knowing which market we are dealing with when trying to buy a product helps us determine how to set up the bid/contract and structure the pricing. |
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Term
A governmental agency has a threshold for small purchases of $1000 and three quotes are required above that figure. There has been a steady increase in the number of field purchase orders, along with recent complaints from internal customers about it taking too long to buy what they need. Which of the following actions is most likely to have the biggest impact on reducing costs and saving time in the long run?
A. Instituting a procurement card program.
B. Raising the small purchase threshold.
C. Hiring a new buyer just to handle small purchases.
D. Reducing the number of quotes required from three to two. |
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Definition
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Term
Which of the following statements best describes a brand name specification?
A. Establishes the Qualified Products List (QPL) characteristics, in significant details, that an item must possess.
B. Sets forth the capabilities and performance characteristics.
C. Describes the standard of quality and performance with a unique qualifier.
D. Describes all physical and functional characteristics of a commercial standard specification. |
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Definition
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Term
| Contract plus award fee contract |
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Definition
| A contract that provides for a base amount fee fixed at inception of a contract and an additional fee at the time of award. |
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Term
| Fixed price contracts includes: |
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Definition
- firm fixed price
- fixed price with economic adjustment
- fixed price re-determination |
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Term
| Fixed price, price re-determination |
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Definition
| Provides for a firm fixed price for a stated period of time after which the price may be predetermined for a subsequent period of time. |
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Term
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Definition
| Contracts, either written or oral, in which all the formal elements for a contract creation exist. |
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Term
| Time and materials contracts |
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Definition
| A contract that provides for the acquisiton of services based on direct labor hours and materials. |
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Term
| Contract plus award fee contract |
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Definition
| A contract that provides for a base amount fee fixed at inception of a contract and an additional fee at the time of award. |
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Term
| Fixed price contracts includes: |
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Definition
| - firm fixed price - fixed price with economic adjustment - fixed price re-determination |
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Term
| Fixed price, price re-determination |
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Definition
| Provides for a firm fixed price for a stated period of time after which the price may be predetermined for a subsequent period of time. |
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Term
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Definition
| Contracts, either written or oral, in which all the formal elements for a contract creation exist. |
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Term
| Time and materials contracts |
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Definition
| A contract that provides for the acquisiton of services based on direct labor hours and materials. |
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Term
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Definition
| A contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. |
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Term
| Fixed price with economic adjustment |
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Definition
| Provides a fixed price that can be adjusted upward or downward upon the occurrence of certain contingencies specified in the contract. |
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Term
| Incentive type of contracts include: |
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Definition
- fixed price incentive
- cost plus incentive fee |
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Term
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Definition
| Instances in which the law imposed an obligation on a person to achieve justice even though no true contract exists. |
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Term
| 4 forms of volume contracts |
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Definition
- blanket contract
- terms contract
- schedule contract
- system contract |
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Term
| Bid evaluation criteria table |
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Definition
| Identifies the mandatory and main point-rated evaluation criteria areas to be evaluated. |
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Term
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Definition
| The process by which the agreement is formed |
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Term
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Definition
- incentive
- fixed price
- cost-type |
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Term
| Cost type contracts are used: |
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Definition
| Where the risk is minimized for the vendor and maximized for the client. |
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Term
| Cost reimbursement contracts |
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Definition
| A family of pricing arrangements or contract types that provide for payment of allowable, allocable and reasonable costs incurred in the performance of a contractor to the extent such costs are prescribed or permitted. |
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Term
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Definition
| Must be done in such a manner as to assure that no vendor is given an unfair advantage over competitors. |
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Term
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Definition
- Offer and acceptance
- Definiteness
- Consideration
- Mutuality of obligation
- Capacity of the parties
- Legality of purpose |
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Term
| Cost type contracts includes: |
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Definition
| - Cost reimbursement, cost sharing, time and materials, cost plus fixed fee, cost plus award fee |
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Term
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Definition
| A bid which the vendor qualifies the bid by stipulating that it will only accept a conract for all items in the bid. Difficult for the buyer when the overall total is higher than a vendor with lower individual items. |
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Term
| An ONLY bid happens when: |
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Definition
| Sole source, specs were to restrictive, sale is controlled through territorial distribution, poor selection of vendors |
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Term
| Evaluation Plan should identify: |
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Definition
| Evaluation criteria, weight factors, scoring grid for evaluation scoring method, vendor selection |
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Term
|
Definition
- mandatory minimum requirements
- point rating system
- combination of minimum requirements and point rated system |
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Term
| Cancel or re-issue a bid when: |
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Definition
| A significant change has occurred in a requirement, no bids were received or all were non-responsive, no bids represented a fair value, acceptance period has expired, substantial changes to specs or evaluation criteria |
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Term
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Definition
| Documents the evaluation criteria, rating factors, contractor selection method and scoring method. |
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Term
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Definition
| The essential rule is that no change or correction be permitted that would prejudice the interest of the public or would be unfair to other bidders. |
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Term
| 3 types of procurement methods |
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Definition
- informal
- formal competitive sealed bidding
- competitive sealed proposals |
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Term
| Competitive sealed proposals |
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Definition
| A means for achieving the best value |
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Term
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Definition
| Performance spec, time frames, vendor instructions, pricing requirements, criteria used in evaluation, terms and conditions, facility and capability data, milestone list, pricing, vendor, understanding |
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Term
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Definition
| A competitive bid or price quotation for supplies or services that is conveyed by letter, telephone, or other means and does not require a sealed bid, public opening, or public reading of the bid. |
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Term
| Competitive sealed bidding |
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Definition
| A process that enables the organization to acquire products and services at a good value. |
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Term
|
Definition
| A formal request to prospective vendors soliciting price quotations for bids. |
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Term
|
Definition
| All documents utilized for soliciting competitive proposals |
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Term
|
Definition
| A spec setting for the results required from the supply or services. |
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Term
|
Definition
| A trade name or trademark that identifies a product or service |
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Term
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Definition
| Prepared by a group of people consisting of purchasing, legal, end user dept and others w/in the organization with technical expertise in the field. |
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Term
| Brand name or equal specification |
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Definition
| A spec using one or more manufacturer's brand names, with identifying model numbers, to describe the standards of quality, performance, and other characteristics. |
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Term
| Solicitation documents should include: |
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Definition
| advertising, standard bid clauses, instructions to vendors, general and special terms and conditions, specs/statement of work and proposed schedule, bid proposal form |
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Term
| 3 basic methods of solicitation |
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Definition
- informal competitive bidding or small purchase
- formal competitive sealed bidding
- competitive negotitations |
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Term
|
Definition
| Embraces all functions related to the control and coordination of the movement of goods, and maintenance, repair and operation items, to, through, and out of the organization including purchasing, storage, disposal, forecasting, inventory control, etc. |
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Term
|
Definition
| The specific supplies, services, or construction and time period within which they are needed. |
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Term
| Upon receipt of a requisition, the purchasing agent... |
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Definition
| Check for availability from existing stock, determines if requirement can be bundled, determines source, method, solicits bid, evaluates bids, prepares contract, awards contract, administers contract |
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Term
|
Definition
| A complete and concise description |
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Term
|
Definition
| design, material & method of manufacture, drawings, performance, brand name, brand name or equal, sample, market grade, qualified products list (QPL), combinations |
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Term
| Describe how materials management relates to the purchasing cycle |
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Definition
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|
Term
| 4 objectives of a specification |
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Definition
| Identify requirements, allow for competition, list reproducible test methods, provide for equitable award. |
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Term
| 4 elements of a specification |
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Definition
| Identifies a minimum requirement, allows for maximum competition, identifies test methods to be used to verify compliance, and contributes to obtaining best value at the lowest possible cost. |
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Term
|
Definition
Quantitative (physical counts) and
qualitative (suitability or effectiveness) |
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Term
| What hat does purchasing wear? |
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Definition
| Services other departments and agencies, advises management, performs work of contracting, inventory management, warehousing, traffic, etc. |
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Term
| Procedure manuals should include: |
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Definition
| Goals, objectives, and responsibilities, step-by-step outline of the process, guidelines for RX, outline of supply management, spec procs, listing of forms |
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Term
|
Definition
| A document issued by the receiving office stating that the merchandise was damaged, plus precise description of damage. |
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Term
| Roles of purchasing include: |
|
Definition
| Expertise, decision making, adviser, implementer, marketer, and central stores |
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Term
| Articles of model procurement code include: |
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Definition
| General provisions, organization, source select and contract formation, specs, procurement of construction, modification and termination, cost principles, supply management, legal, government regulation, small and disadvantages business, ethics. |
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Term
| Describe the purchasing cycle |
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Definition
| The process of planning, acquiring and receipt of goods and services. It has a starting and ending point. |
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