Purchasing Definitions

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Purchasing Definitions

Instructions: This page has two search mechanisms. Click below to search for information alphabetically or use the drop down menu to search by topic. Clicking on either the alphabetical or topic search will automatically direct you to the chosen section of the document.

Search Alphabetically: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Search by Topic:

A Top of Page

ARTICLES OF AGREEMENT

A detailed description of the services, equipment and products showing what is to be accomplished and the level of detail needed for success.

B Top of Page

BID SPECFICATIONS

A detailed description of the services, equipment and products showing what is to be accomplished and the level of detail needed for success.

BID PACKAGE

One or more documents that are provided to vendors (bidders) that explain what is needed, solicits information and makes them aware of Rutgers University term & conditions that is stated above.

BID CONFERENCE

A formal meeting with bidders to provide additional information and a time for bidders to seek clarification of points related to the bid.

BLANKET ORDER

A purchase order for a defined period of time most frequently used for repetitive purchases.

BUYER

A person within the purchasing department that has the authority to make purchases on the behalf of the university. Buyer can also mean Rutgers when used in a specification or in Terms and Conditions.

C Top of Page

CHANGE ORDER

A written document used to make of a change to an existing purchase order.

COMPANY'S SITE

The vendor's location.

COMPETITIVE BID

A process used to have more than one vendor provide a price for the same item. The proven best technique to control or reduce the price paid for goods and services.

CONCEALED DAMAGE

Carton intact, but material damaged.

CONSULTANT

An individual being hired to perform certain personal services as an independent contractor.

CONFIDENTIALITY

The non-disclosure of information. Rutgers can maintain confidentiality to the extent permitted by law.

CONFLICT OF INTEREST

When a university employee would have a direct or indirect financial benefit due to a buyers decision.

CONTRACTOR

A person or a business that follows an independent trade, business, or profession in which they provide goods or services to the public.

D Top of Page

E Top of Page

ESTIMATED UNIT PRICE

Unit prices are those acquired by previous orders or present market price knowledge, catalog pricing, etc.

F Top of Page

FREE ON BOARD (F.O.B.)

The point of delivery where title of goods transfers from the Seller to Rutgers.

G Top of Page

GENERIC DESCRIPTION

General description containing basic parameters, specifications written in such a manner as to not restrict purchase to one (1) vendor.

H Top of Page

I Top of Page

J Top of Page

JUSTIFICATION LETTER

Detailed letter all essential criteria effecting selection. Can/should be written by the department and attached to the requisition.

K Top of Page

L Top of Page

M Top of Page

MATERIAL SAFETY DATA SHEETS (MSDS)

A document provided by a manufacturer that details the chemical makeup of a product and describes safety and emergency treatment issues.

MINORITY BUSINESS ENTERPRISE (MBE)

A minority has 51% ownership of a business.

N Top of Page

O Top of Page

OEM

Original Equipment Manufacturer

P Top of Page

PREFERRED SUPPLIER

A designation purchasing gives to a supplier(s) and special pricing or service has been negotiated. The primary means of leveraging the full buying power of the university.

PURCHASE AGREEMENT

A Rutgers Purchase Order which may also includes General Terms and Conditions, Supplemental Terms and Conditions, Specifications, Drawings and Change Orders.

Q Top of Page

R Top of Page

REQUEST FOR INFORMATION (RFI)

A solicitation requesting information about a service or product.

REQUEST FOR PROPOSAL (RFP)

A solicitation requesting proposals as to how the vendor would address the need identified in the RFP and the price that will be charged. Price will not be the determining factor.

REQUEST FOR QUOTE (RFQ)

A solicitation requesting a price to provide a specific item or service.

RELEASE

Individual procurements issued by the end user and based upon the terms and conditions of an established blanket purchase order.

S Top of Page

SCOPE OF WORK (SOW)

A detailed description of the product or service being requested.

SELECTION CRITERIA

Based upon an evaluation of the vendors' capabilities, including their expertise, ability to meet schedule, size, organization, and past experience. The attributes that will be used to make a vendor selection or buying decision.

SELLER

The business providing the good or service.

SERVICES

Shall mean design, engineering, installation, testing, evaluation, maintenance, repair, management, consulting and any other services necessary to fulfill Seller's obligations under the Purchase Agreement.

SINGLE SOURCE

Multiple vendors are available to provide a good or service but there is a business reason for making the purchase for a specific firm.

SOLE SOURCE

Only one firm can supply the good or service.

SUBCONTRACTOR

A contractor working for a "prime" contractor.

T Top of Page

TERMS & CONDITIONS

Stand alone clauses that define the understanding between a buyer and seller.

U Top of Page

V Top of Page

VENDORS - Same as seller

W Top of Page

WOMEN OWNED BUSINESS (WBE)

A woman has 51% ownership of a business.

X Top of Page

Y Top of Page

Z Top of Page

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