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CHAPTER 8
Requirement:
The maximum overall estimated need of goods or services over
a specific period of time for purposes of procurement, budgeting
and planning.
Responsive bid:
A tender or offer which does not vary in regard to specifications,
terms and conditions of contract set out by the buyer in his invitation
to tender. See also Non-responsive bid.
Restricted tendering:
An invitation to tender open only to certain prequalified tenderers
and implementing a format method of procurement. See also
Prequalification and Short list.
Restrictive
specifications:
See Preclusive specification.
Running contract:
See Rate contract.
Salvage:
Is used in various contexts. Generally refers to the value of a property
higher than its scrap value but no longer economically worthwhile to
restore to its original usable form. Salvage loss in marine insurance
occurs when goods damaged in transit are sold for less than their
insured value before these reach the final destination. It also refers
to payments made to professional salvors who are used for saving
cargo or a ship in distress, or for the services of a person who may
find a piece of ship’s equipment washed up on a beach. Salvage is
first charge on a saved property.
Sample:
Asample to be furnished by tenderers along with their tenders/offers
to establish the quality of the products being offered.
Self-certification:
A form of conformity certification in which one or more manufacturers
is responsible for conformity certification of its products with no
surveillance from any certification body. See also Certificate of
quality.
Services:
Activities carried out by the supplier to achieve the contractually
fixed results. Results can be physically defined (a study) or as an
action (three months of training). Mixtures of supplies and services
are usually put in the category to which more than 50% by value
belongs. See also: Objects of procurement.
Shelf life:
The period of time during which an item, having a limited storage
life, is considered to be ready for use.
Short sale:
The sale of a commodity for future delivery which the supplier does
not possess but intends to purchase prior to the required delivery
date, expecting that the market price will be no higher or will decline
during the intervening period.
GLOSSARY