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

Licensee:   A Licensee is one or more authorized users who acquire product from contractor by execution of a license in accordance with the terms and conditions of the contract, provided that, for purposes of compliance with an individual license, the term "Licensee " shall be deemed to refer separately to the individual authorized user (s) on whose behalf the license was executed who took receipt of the product, and who shall be solely responsible for performance and liabilities incurred. (ApB)
Licensor:   A Licensor is a contractor who transfers rights in proprietary Product to Authorized Users in accordance with the rights and obligations specified in the Contract. (ApB)
Life Cycle Costs:   Life Cycle Costs are defined as the sum of the fees and indirect costs in the purchase of a commodity, service or technology . Life Cycle Costing is used for procurements that involve the expenditure of funds for both the fees associated with the services to be procured (price ) and costs associated with the introduction of the services into the environment (indirect costs ). An example of the application of the Life Cycle Cost evaluation is the sum cost of the acquisition of a new computer environment (offer price ) and the cost of a systems conversion necessitated by the installation of a new computer environment (indirect costs ). (PG)
Lowest Price:   "Lowest Price " is the basis for awarding all commodity contracts among responsive and responsible offerers. (PG)
Mini-Bid:   A mini-bid process is required in certain contracts and the exact process is clearly outlined in the back-drop contracts. (WBS)
Mini-Bid Process:   A formal mini-bid is the process whereby an Authorized User develops a project definition outlining their specific requirement and solicits bids from qualified back-drop contractors to determine the best value solution. From development of the project specifications to the project award takes from six to ten weeks, a fraction of the time when compared with the traditional RFP procurement. Project awards shall be based on "Best Value . In the technology area, PBX Systems and IT Services make use of the mini-bid process . These guidelines are available on the OGS website or upon request from the Procurement Services Group . Except where an agency can justify single or sole source procurement or where the requirement does not exceed $15,000, (or where a direct purchase is made form an NYS MBE, WBE, SBE for up to $50K) the formal
Mini-Bid Project Definition:   A Mini-Bid Project Definition is a bid document containing project specific bid specifications developed by or for an authorized user which solicits bids from Contractors previously qualified under a back-drop contract. (ApB)
Multi-State Contract:   A Multi-State Contract is any contract open to agencies of the State of New York which is also open to the agencies of other states. The contract may be administered by New York State, or by another host state. (WBS)
Multiple Award:   A Multiple Award is an award of a contract to more than one responsive and responsible bidder who meets the requirements of a specification, where the multiple award is made on the grounds set forth in the bid document in order to satisfy multiple factors and needs of authorized users . Those factors may include complexity of items, various manufacturers, differences in performance required to accomplish or produce required end results, production and distribution facilities, price , compliance with delivery requirements, geographic location or other pertinent factors. (ApB) A multiple award may be made as the result of a single IFB (e.g., books) or as the result of issuing a single contract for multiple IFB's for similar type products (e.g., PC's)
Negotiated Contract:   A contract established by agreements reached between a contracting entity and a vendor in lieu of issuing a bid document. While occasionally negotiation follows a competitive bid when only one bid is received, such resulting contracts are considered to be competitive procurements. (WBST)