NIGP Dictionary Terms – Questions With A+
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Terms in this set (141)
A+B Bidding A cost-plus-time bidding procedure that selects the
low bidder based on a monetary combination of the
contract bid items (A) and the time (B) needed to
complete the project or a critical portion of the
project. It is used to motivate the contractor to
minimize the overall time on high priority and high
usage projects. This encourages contractors to finish
early by (1) offering bonuses for early completion
and (2) assessing fines for late completion.
ABA Model Procurement Code for Developed by the American Bar Association (ABA)
State and Local Government and adopted in 1979, it is a collection of statutory
principles and policies that provides guidance to
public policy managers who wish to responsibly
manage public procurement. State and larger local
governments have individually codified it into
procurement law and policy to effectively guide their
procurement organizations. The code was updated in
2000 and contained enhancements in the following
areas: Electronic Commerce, Cooperative
Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and
Services. Also called Model Procurement Code.
ABA Model Procurement Ordinance A code similar to the ABA Model Procurement Code,
for Local Governments but intended for use by small local jurisdictions.
,ABC Inventory Classification A means in which to categorize inventory that is
applicable to any size business, regardless of
industry. (e.g. government, manufacturing, services
etc.) ABC classification allows for a review of the
inventory based on the business' approach to the
management or review of its inventory. For some
agencies, the ABC of categories is based on the
dollar value of the items. "A" in this application would
be the top 10% of the inventory items and would
account for approximately 70% of the annual
inventory dollar volume. "B" would be the next 20%
and would account for approximately 20% of the
annual dollars in the inventory and "C" the remaining
70% of the annual inventory items with 10% of the
overall monetary value of the annual inventory. The
use of the terms "A", "B", and "C" may also be used to
classify the need for accurate inventory records
(tolerance) for various items, (very accurate,
moderate accuracy), how often cycle counts are
needed (weekly, monthly, or quarterly), or even to
note who may be responsible for the inventory itself
(i.e.: "A" is controlled by fleet, "B" is by purchasing and
"C" by parks and recreation). Further, "A" may denote
the items in the inventory that have the longest lead
times (i.e.: JIT extended lead times), how the items are
purchased (term contract, spot buy) or levels of
safety stock required (highest turn-over, slow
movers). Location of specific items in the inventory
may also be denoted by the ABC Classification
system. (Janson, 1987)
Absolute Advantage The ability of a country to produce a specific good
with fewer resources per unit of output than other
countries. The ability to produce something with
fewer resources than other producers would use to
produce the same thing. A monopoly that exists
when a country is the only source of an item, the only
producer of an item, or the most efficient producer
of an item. Also see Comparative Advantage.
(Schiller, 2000)
, Acceptance of Offer The agreement of the vendor to deliver the goods
ordered for the price offered.
Acceptance 1. Indication that an offeree is bound by the terms of
the offer.
2. An indication by one party of a willingness to act in
accordance with the contract or offer.
3. The assumption of a legal obligation by a party to
a contract to the terms and conditions of that
contract.
4. The act of receiving by an authorized
representative with the intention of retaining.
Acceptable Quality Level (AQL): The specified minimum performance that must be
achieved by a product or service to assure the buyer
that the goods or services will perform as per the
specifications or stipulations contained within the
statement of work. The maximum allowable number
of defects or defective units. A predetermined quality
level which has been deemed as being acceptable;
generally used in the manufacturing of material
items. Example: AQL of 1% defective rate is
acceptable for this item. Also see Acceptance
Sampling.
Acceptable Products List (APL): A pre-approved list of commodities/products,
usually grouped by manufacturer, which have proven
to be in conformance with developed specifications
and standards. The list may result from performance
testing of the product or as a result of field testing or
laboratory analysis. Also see Qualified Products List
(QPL) and Approved Brands List (ABL).
Solutions
Save Groups
Terms in this set (141)
A+B Bidding A cost-plus-time bidding procedure that selects the
low bidder based on a monetary combination of the
contract bid items (A) and the time (B) needed to
complete the project or a critical portion of the
project. It is used to motivate the contractor to
minimize the overall time on high priority and high
usage projects. This encourages contractors to finish
early by (1) offering bonuses for early completion
and (2) assessing fines for late completion.
ABA Model Procurement Code for Developed by the American Bar Association (ABA)
State and Local Government and adopted in 1979, it is a collection of statutory
principles and policies that provides guidance to
public policy managers who wish to responsibly
manage public procurement. State and larger local
governments have individually codified it into
procurement law and policy to effectively guide their
procurement organizations. The code was updated in
2000 and contained enhancements in the following
areas: Electronic Commerce, Cooperative
Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and
Services. Also called Model Procurement Code.
ABA Model Procurement Ordinance A code similar to the ABA Model Procurement Code,
for Local Governments but intended for use by small local jurisdictions.
,ABC Inventory Classification A means in which to categorize inventory that is
applicable to any size business, regardless of
industry. (e.g. government, manufacturing, services
etc.) ABC classification allows for a review of the
inventory based on the business' approach to the
management or review of its inventory. For some
agencies, the ABC of categories is based on the
dollar value of the items. "A" in this application would
be the top 10% of the inventory items and would
account for approximately 70% of the annual
inventory dollar volume. "B" would be the next 20%
and would account for approximately 20% of the
annual dollars in the inventory and "C" the remaining
70% of the annual inventory items with 10% of the
overall monetary value of the annual inventory. The
use of the terms "A", "B", and "C" may also be used to
classify the need for accurate inventory records
(tolerance) for various items, (very accurate,
moderate accuracy), how often cycle counts are
needed (weekly, monthly, or quarterly), or even to
note who may be responsible for the inventory itself
(i.e.: "A" is controlled by fleet, "B" is by purchasing and
"C" by parks and recreation). Further, "A" may denote
the items in the inventory that have the longest lead
times (i.e.: JIT extended lead times), how the items are
purchased (term contract, spot buy) or levels of
safety stock required (highest turn-over, slow
movers). Location of specific items in the inventory
may also be denoted by the ABC Classification
system. (Janson, 1987)
Absolute Advantage The ability of a country to produce a specific good
with fewer resources per unit of output than other
countries. The ability to produce something with
fewer resources than other producers would use to
produce the same thing. A monopoly that exists
when a country is the only source of an item, the only
producer of an item, or the most efficient producer
of an item. Also see Comparative Advantage.
(Schiller, 2000)
, Acceptance of Offer The agreement of the vendor to deliver the goods
ordered for the price offered.
Acceptance 1. Indication that an offeree is bound by the terms of
the offer.
2. An indication by one party of a willingness to act in
accordance with the contract or offer.
3. The assumption of a legal obligation by a party to
a contract to the terms and conditions of that
contract.
4. The act of receiving by an authorized
representative with the intention of retaining.
Acceptable Quality Level (AQL): The specified minimum performance that must be
achieved by a product or service to assure the buyer
that the goods or services will perform as per the
specifications or stipulations contained within the
statement of work. The maximum allowable number
of defects or defective units. A predetermined quality
level which has been deemed as being acceptable;
generally used in the manufacturing of material
items. Example: AQL of 1% defective rate is
acceptable for this item. Also see Acceptance
Sampling.
Acceptable Products List (APL): A pre-approved list of commodities/products,
usually grouped by manufacturer, which have proven
to be in conformance with developed specifications
and standards. The list may result from performance
testing of the product or as a result of field testing or
laboratory analysis. Also see Qualified Products List
(QPL) and Approved Brands List (ABL).
