LESSON 11

Fixed-price Contract

An agreement that sets the fee that the buyer will pay for a defined scope of work. It is most often used when seller provides a clearly defined product.

Procurement Statement of Work (SOW)

Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.

Time and materials contract

A hybrid type of contract with elements of both fixed-price and cost-reimbursable contract types most commonly used when acquiring people.

Bidder Conference

A meeting with prospective sellers prior to the preparation of a bid to ensure all prospective sellers have a clear and common understanding of the procurement.

Contract

A mutually binding agreement between two parties (buyer and seller).

Claim

A request or demand by the seller against a buyer or a buyer against a seller regarding a disputed charge.

Selection Criteria

A set of attributes desired by the buyer that the seller must meet to be considered for a contract.

Cost-reimbursable Contract

A type of contract involving payment to the seller for seller's actual cost plus a fee representing the seller's profit. It is most often used when seller works to create a project deliverable or service.

Request for Quotation (RFQ)

A type of procurement document used to request price quotations from prospective sellers of common or standard products or services. Sometimes used in place of request for proposal and, in some application areas, it may have a narrower or more specific meaning.

Request for Proposal (RFP)

A type of procurement document used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.

Request for Information (RFI)

A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability.

Bid Documents

All documents used to solicit information, quotes, or proposals from prospective sellers.

Proposals

Formal responses provided by potential sellers specifying required for the buyer to make a contracting decision.

Procurement Documents

The documents used in bid and proposal activities including the statement of work, bid documents, and sellers' proposals.

Plan Procurement Management

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Control Procurements

The process of managing procurement relationships, monitoring performance, and closing contracts.

Conduct Procurements

The process of obtaining seller responses, selecting a seller and awarding the contract.

Project Procurement Management

The processes necessary to purchase or acquire products or services from sellers external to the organization.

Procurement Audits

The review of contacts and contracting processes for completeness, accuracy, and effectiveness.