Glossary of Commonly Used Procurement Terms

Source Key:
ApB - Appendix B, General Specifications
PG - Procurement Council Guidelines
SFL - State Finance Law Article XI
WBS - OGS/NYSPro website
WBST - OGS/NYSPro website/Technology Guidelines

Centralized Contracts:   Centralized contracts are any contracts for the purchase of commodities or services, established or approved by the commissioner of General Services as meeting the state's requirements including, but not limited to, any contract let by the federal government, other state or local governments or purchasing consortia. (SFL)
CL / Circular Letter:   A CL or circular letter is a mechanism used to inform customers of PSG initiatives, categorical happenings, etc.
Commodity or Commodities:   Commodities are standard articles of commerce in the form of material goods, supplies, products or similar items. Lowest price is the basis for awarding all commodity contracts among responsive and responsible offerers. (PG) "Commodity" or "commodities" means, except with respect to contracts for state printing, material goods, supplies, products , construction items or other standard articles of commerce other than technology which are the subject of any purchase or other exchange. (SFL)
Costs:   "Costs " as used in this article shall be quantifiable and may include, without limitation, the price of the given good or service being purchased; the administrative, training, storage, maintenance or other overhead associated with a given good or service; the value of warranties, delivery schedules, financing costs and foregone opportunity costs associated with a given good or service; and the life span and associated life cycle costs of the given good or service being purchased. Life cycle costs may include, but shall not be limited to, costs or savings associated with construction, energy use, maintenance, operation, and salvage or disposal. (SFL)
Direct Buy:   The ability for an Authorized User to buy directly from an OGS contract using its standard form, format or purchase order, and which does not require a mini-bid , best and final negotiation, creation of a procurement record , or other required process, prior to making the buy. (WBST)
Discriminatory Jurisdictions:   Jurisdictions that impose sanctions or otherwise restrict the ability of New York State companies when they compete for contracts on an equal basis within those jurisdictions. The NYS Finance Law (SFL) Article IX Section 139i and Article XI Section 165(6)(a) requires that a state agency will not enter into a contract with businesses meeting the following criteria: The bidder's principal place of business, defined as the location of the primary control, direction and management of the enterprise, is located in a jurisdiction that discriminates against New York State vendors (currently identified in the PSG version of Appendix A and the goods or service offered are substantially manufactured, produced or performed outside New York State.
Filed Requirements Contract:   A Filed Requirements Contract is a term contract covering specified delivery points and estimated quantities. The intent is to guarantee a source of supply for a critical commodity for a specified period of time for agencies who have submitted, or 'filed' their requirements with centralized procurement. (WBS)
Group:   A Group is a classification of product (commodities, services or technology ) assigned by PSG. (ApB)
Letter of Acceptance:   A Letter of Acceptance is a letter to the successful bidder(s) indicating acceptance of its bid in response to a solicitation. Unless otherwise specified, the issuance of a Letter of Acceptance forms a contract but is not an order for product, and contractor should not take any action with respect to actual contract deliveries except on the basis of purchase orders sent from authorized user (s). (PG)
Licensed Software:   Licensed software includes ancillary products , error corrections, upgrades, enhancements or new releases, and any deliverables due under a maintenance or service contract (e.g. patches, fixes, PTFs, programs, code or data conversion, or custom programming). (ApB)