Glossary

Award

Purchasing's acceptance of a Bid or proposal from a Vendor resulting in a Purchase Order or contract with the vendor.

Back Order

All or part of an order that the Vendor is unable to ship immediately, but will be shipped at a later date.

Bid/Proposal Evaluation

An analysis of the responses to an IFB to determine the Vendor whose response meets the necessary criteria to be Vendor of award.

Bidder

The Vendor submitting the reply to an Invitation for Bid (IFB).

Competitive Bid/Proposal

The submission of prices by individuals or firms competing for a Contract.

Contract

A legally binding agreement between two or more parties. (Example: Purchase Order).

Discount

A deduction from the normal price of an item(s) given by the Vendor to the Purchaser.

F.O.B.

A delivery term meaning "free on board" at a named place. The named place is where merchandise title passes from the seller to the purchaser. Whoever holds the title in transit is responsible for damages and losses and for filing claims.

F.O.B. Destination

The most desirable term for the Purchaser. Title is held by the Vendor until merchandise is delivered to the Purchaser or dock area. The Vendor is responsible for damages and losses and the filing of claims up to the time of delivery. A separate freight bill will be submitted for payment.

F.O.B. Destination, Freight Prepaid, and Added

Title of merchandise passes to Purchaser at time of delivery; however, transportation and freight charges are prepaid by the Vendor and added to the invoice.

F.O.B. Factory, Freight Prepaid and Allowed

A delivery term which places liability with the Purchaser once the freight leaves the dock, but the Vendor is going to pay the shipping costs.

F.O.B. Shipping Point

Title of the merchandise passes from the Vendor to the Purchaser at the moment of delivery to the freight carrier. Purchaser is liable for freight charges, and must file all claims for loss or damage.

Prepayment

When payment must accompany the Purchase Order (memberships, dues, subscriptions, registrations, etc.)--Proof of price on fee rate is required for payment.

Purchase Order

A Purchasing document consummating an offer by the district. A purchase order acts as a contract when accepted by the Vendor and states the terms and conditions of the desired purchase.

Sealed Proposal/Bid

A Bid that is submitted in a sealed envelope with instructions stated in the IFB. There is a date and time deadline for submission. Envelopes are date and time stamped upon receipt and not opened until the Bid opening date/time.

Sole Source

The only known Vendor able to supply an item due to requirements, market conditions, or proprietary situations.

Specifications

A description of what the Purchaser seeks to buy, and what the Bidder must be responsive to in order to be considered for award of the contract.

Vendor

Supplier