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

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)
Non-State Agencies:   Non-State Agencies , also referred to as Authorized Users , are any of a group of entities authorized by law to utilize State centralized contracts . For a complete list of eligible groups, see the OGS Website. http://www.ogs.state.ny.us/purchase/snt/othersuse.asp
Piggyback or Piggybacking Contract:   A Piggyback Contract is a contract let by any department, agency or instrumentality of the United States government, or any department, agency, office, political subdivision or instrumentality of any state or state(s) which is adopted and extended for use in accordance with the requirements of the New York State Finance Law. (ApB)
Preferred Sources:   To advance special social and economic goals, certain providers have preferred source status under the law. The acquisition of commodities and/or services from preferred sources is exempted from statutory competitive procurement requirements. All state agencies, political subdivisions and public benefit corporations (which includes most public authorities), are required to purchase approved products and services from preferred sources in accordance with the procedures and requirements described in the Preferred Source Guidelines.
Price:   Price , unless otherwise specified, means the amount of money set as consideration for the sale of a commodity or service and may include, but is not limited to, when applicable and when specified in the solicitation delivery charges, installation charges and other costs. (SFL)
Prime Vendor Contract:   A Prime Vendor Contract is a contract that establishes a single vendor or multiple vendors as the source for a broad range of goods and/or services associated with a given purchasing sector(s). OGS has currently let Prime Vendor contracts for food and household supplies, and industrial and commercial supplies and equipment. (WBS)
Procurement Guidelines:   The New York State Procurement Council has adopted procurement guidelines to assist New York State agencies when procuring commodities, services and technology .
Procurement Record:   The Procurement Record is the accumulated documentation, relating to a purchase, by an Authorized User . Documentation should include, but not necessarily be limited to justification for a single or sole source purchase, competitive methodology utilized (minibid vs. agency RFP) and reasonableness of price . Chapter 95 of the Laws of 2000 includes an amendment to Section 163 (7) of the State Finance Law stating, "Agencies are required to document evaluation criteria in the procurement record prior to the initial receipt of offers in a best value procurement." Section 163 (9) (g) was amended to add "The procurement record must include each amendment to a contract and the justification for the same." (WBST) A Procurement Record is the documentation by the issuing entity of the decisions made and approach taken during the procurement process. (ApB)
Procurement Record:   The new procurement law includes a requirement that a "Procurement Record " be kept for each acquisition. The Record formalized the practice of agencies to maintain documentation concerning the procurement process and the decisions made during that process. The Procurement Record , including the solicitation documents, should contain all the materials necessary to be conveyed to the Office of the State Comptroller for contract review purposes and any other material the agency determines is essential. The Record is designed to both serve and protect agencies and the business community during and after the procurement. (PG)
Products:   A Product is a deliverable under any bid or contract which may include commodities (including printing), services and/or technology . The term product includes Licensed Software. (ApB)

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