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CHAPTER 8
Non-recurring
demand:
A request made by a user (department) on a one-time basis for a
special purpose or use.
Non-responsive bid:
A tender/offer by a tenderer which does not conform to the essential
requirements of the tender. See also Responsive bid.
Objects of
procurement:
A term used for any one of the categories of goods, works or
services or any mixture thereof. In case of a mixture the category
for classification is that to which the majority of the value belongs.
See also Goods, Works and Services.
Offer:
An offer can be the positive answer issued by a tenderer in response
to a tender invitation, or an announcement to deliver goods, carry
out works and/or services to every, or a specific, buyer without a
specific request or invitation to tender. Also refers to an expression
of readiness by a tenderer to enter into a contract. See also Bid,
Draft contract, Quotation and Tender.
Order:
A written document to buy, with instructions, issued to a supplier
for material and/or services to be made available at specified price
and time. Orders can be issued without any reference to a tender/
offer. See Agreement and Contract.
Ordering costs:
Cost of placing an order.
Order point control:
A method of inventory control which relies on defining a minimum
stock level which, when reached, must trigger off procurement action
of re-ordering. See also Inventory control.
Original Equipment
Manufacturer (OEM):
Producer who procures goods and/or services and incorporates
these without any changes (a component part) into a product which
he is manufacturing for sale.
Packing list:
Astatement which lists in detail the contents of a particular package.
It is also called a Packing note.
Patent:
A right or an authority granted by a designated government agency
to an inventor to have a sole right of making, using or selling his
invention for a specified period.
Patent infringement:
Unauthorised use by a manufacturer of a product or process
invented by someone else and over which the latter has a patent
right. The buyer, to protect himself against patent infringement by
a supplier, usually has an appropriate clause inserted to this effect
in the purchase contract. See also Patent.
GLOSSARY