Bill of Materials (BOM)
A formal document showing the hierarchy of components or pieces and their sub-components or sub-pieces that make up the project.
A mutually binding agreement that requires the services provider to supply the specified services or goods and requires the buyer to pay for them per the terms of the document.
Contract Administration
The process of managing the relationship between buyer and seller.
Cost-Plus-Fixed-Fee (CPFF) Contract
A contract in which the supplier receives payment for allowable costs plus a fixed fee typically based on estimated cost.
Cost-Plus-Incentive-Fee (CPIF) Contract
A contract in which the supplier receives payment for allowable costs, as well as a pre-negotiated fee and an incentive fee (if incentives are met.)
Cost-Reimbursable (CR) Contside he outfrom tract
A contract n which the supplier is paid for direct and indirect cost actually incurred on the project.
Fixed-Price-Incentive-Fee (FPIF) Contract
A contract in which the seller provides products or services based on a well defined scope of work for a set price; also includes a fee structure that provides more payment for achieving predefined performance objectives.
Make-or-Buy Decision
An initial part of the procurement process in which a decision is made to either create the product by the company that needs it or to outsource it and have another company create it.
Procurement Documents (Output/Input)
Documents involved in the bidding and proposal activities, can include request for information (RFI), request for quote (RFQ), or request for proposal (RFP) among others.
Project Procurement MAnagement
The process for receiving goods and services for a project from outside the organization.
Request for Quote (RFQ)
A document used to get bids or quotes from possible suppliers, usually for commodity type items, with minimal customization.
Request Seller Responses
The process of attaining proposals, quotes, bids, etc. for needed services or products.
Select Sellers
Deciding on a supplier to implement the needed solution.
An individual or company that provides goods or services to a company or individual.
Termination Clause
A clause in the contract that allows both the buyer and seller to be able to end the contract.
Contract Closure
The process of completing the contract; includes settlement on any open items.
Cost-Plus-Percentage of Cost (CPPC) Contract
A contract that reimburses the seller for costs, plus a negotiated percentage of the total costs.
Firm-Fixed-Price (FFP) Contract
A contract that pays a seller a fixed price for a well defined or detailed product or service. (Definition for Fixed-Price/Lump-Sum is also acceptable)
Fixed-Price/Lump Sum Contract
A contract in which the seller provides products or services based on a well defined scope of work for a set price (Definition for FFP Contract is also acceptable)
An item on a project for which there is confusion or disagreement, or the item is unresolved and needs attention.
The acquisition of goods or services from an outside source (vendor.)
Plan Purchases and Acquisitions
The process of determining what to buy and the optimum method to make the purchase.
Request for Proposal (RFP)
A document that describes what the buyer wants from a potential supplier, as well as criteria for acceptability of the vendor.
A part of the payment per the terms of the contract that the buyer retains until the project is complete; used to ensure that the seller completes the work per terms of the contract.
Plan Controlling
The creation of product requirements and documentation.
Statement of Work (SOW)
Typically a piece of the contract that details the work be done.

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