Account payable
means a debt owed that arises in the course of business transaction
(e.g., invoices, claims and bills; for materials received but not
yet paid).
Account receivable
means a claim against a debtor usually arising from sales
or services rendered.
Agent
means one acting for another, called principal, in dealing
with third parties.
Bid
means a competitive price offer made by an intended seller,
usually in reply to an invitation to bid; a price offer made at a
public auction.
Bid bond
means an insurance agreement in which a third party agrees
to be liable to pay a certain amount of money in the event a specific
awarded bidder fails to sign the contract as bid.
Bid deposit
means a sum of money or check deposited with and at the request
of the City to guarantee that the bidder (depositor) shall, if selected,
sign the contract as bid. If the bidder does not sign the contract,
the deposit is forfeited in the amount of the deposit.
Bid opening
means the act of publicly opening the bid envelopes and making
available, for public inspection, the bids received.
Blanket agreements
means contracts that establish the commitment of a vendor
to furnish the purchaser’s (City’s) requirements for items
or services on an as-required, over-the-counter basis.
Blanket order
generally specifies prices, terms, conditions and the period
covered, but does not specify the quantity. Shipments/deliveries are
made against the purchase order.
Brand name description
means a description that identifies a single item or source
for a product or service on a proprietary basis. Products are usually
referenced by model or part number.
Centralized purchasing
means a system of purchasing in which all purchasing authority,
responsibility and control of purchasing activities is concentrated
in one administrative unit.
Change order
means purchaser’s written modification or addition
to a purchase order.
City
means City of Grand Junction, State of Colorado.
Collusion
means a secret agreement or cooperation between two or more
persons to accomplish a fraudulent, deceitful or unlawful purpose.
Commodity
means a transportable article of trade or commerce that can
be bartered or sold.
Competitive sealed bid
means the offer of set bids by individuals or firms competing
for a contract, privilege or right to supply specified services or
merchandise. Bids are submitted in sealed envelopes to prevent dissemination
of the contents before the deadline for the submission of all bids;
required on major procurements expected to cost at least $25,000 to
ensure fair competition among bidders.
Conflict of interest
means the actual or potential conflict in which a person
may gain from (or holds interest in) a company doing business with
his employer.
Contract
means an agreement, enforceable by law, between two or more
competent parties, to do or not to do something not prohibited by
law, for a consideration; any type of City agreement, regardless of
what it may be called, for the procurement or disposal of supplies,
services or construction.
Contract administration
means the management of all actions, after the award of a
contract, that must be taken to assure compliance with the contract;
e.g., timely delivery, acceptance, payment, closing contract, etc.
Contractor
means any person having a contract with the City.
Delivery
means the formal handing over of property; the transfer of
possession, as by carrier to purchaser.
Department Director
shall include the following positions: City Attorney, Deputy
City Manager, Public Works and Planning Director, Financial Operations
Director, Human Resources Director, Parks and Recreation Director,
Police Chief, Fire Chief, Utilities and Streets Systems Director and
Economic, Convention and Visitor Services (ECVS) Director, or their
designated representatives.
Division Managers
may include exempt City employees with position titles including,
but not limited to, Deputy Director, Information Technology Director,
Manager, Superintendent and exempt officers of the Police and Fire
Departments.
Emergency purchase
is a purchase made in an exigency, made under special procedures,
designed to meet the emergency. Bona fide emergency purchases are
made to protect the public health of citizens or when immediate repair
is necessary to prevent further damage to public property, machinery
or equipment. In addition, a bona fide emergency purchase is when
the functioning and operation of a City department would be seriously
hampered or delayed through use of the normal requisitioning/purchasing
process.
Evaluation of bids and proposals
means the process of examining a bid or proposal after opening
to determine the respondent’s responsibility, responsiveness
to requirements and other characteristics of the solicitation relating
to the selection of the award.
Formal advertising
means the placement of a notice in a newspaper or other media
according to legal requirements to inform and solicit the public that
the City is requesting bids on specific purchases it intends to make.
Formal contract
means an agreement, enforceable by law, between two or more
competent parties, to do or not to do something not prohibited by
law, for a consideration.
Formal solicitation
means a solicitation response which must be submitted in
a sealed envelope and in conformance with a prescribed format to be
received and opened publicly at a specified time, place and date.
Immediate family
means a spouse, children, parents, brothers and sisters and
any other person living in the same household as the employee.
Informal solicitation
means a request for price quotation for a commodity or service
that does not require advertising, a sealed response, public opening
or reading of responses. Appropriate method for purchases costing
between $5,000 and $10,000. Competitive informal quotes are strongly
recommended for all purchases.
Invoice
means seller’s itemized document stating prices and
quantities of goods and/or services delivered and sent to buyer for
payment.
Lease purchase agreement
means an acquisition contract in which the lease’s
periodic payments or parts thereof are applied both to fulfill the
lease obligation and as installments for equity and eventual ownership
of the commodity upon completion of the agreement.
Net price
means price after all discounts, rebates, etc., have been
allowed.
Nonbudgeted purchase
means purchase of materials or services of benefit to the
City even though the particular performance has not been budgeted
for within a department so long as the expenditure shall not cause
the program or division of the budget to be overexpended.
Nonresponsive bid
means a bid that does not conform to the mandatory or essential
requirements of the invitation for bid.
Not low bidder
means award of a bid to a supplier that did not submit the
low responsive bid.
Obsolete
means no longer in use, discarded, out of date.
Official responsibility
means administrative or operating authority, whether intermediate
or final, to initiate, approve, disapprove or otherwise affect a procurement
transaction or any claim resulting therefrom.
Open market purchase
means a purchase in an amount less than $5,000 which is made
by buying from any available source, as opposed to buying from a vendor
who has responded to an invitation to bid.
Payment bond
means a bond which assures payments, as required by law,
to all persons supplying labor or material for the completion of work
under the contract.
Performance bond
means a contract of guarantee executed subsequent to award
by a successful bidder to protect the City from loss due to his inability
to complete the contract as agreed.
Performance specification
means a specification setting forth performance requirements
that have been determined to be necessary for the item involved to
perform and last as required.
Pre-bid conference
means a meeting held with prospective bidders prior to solicitation
of bids or proposals, to recognize state of the art limits, technical
aspects, specifications and standards relative to the subject and
elicit expertise and bidders’ interest in pursuing the task.
Prequalification of bidder
means the screening of potential vendors in which a City
considers such factors as finances, reputation, management, etc.,
in order to develop a list of vendors qualified to bid on City contracts.
Privatization.
Privatization/outsourcing is a contractual relationship with
an outside vendor to assume responsibility for one or more government
processes, functions and/or services.
Procurement
means buying, purchasing, renting, leasing or otherwise acquiring
any supplies, services or construction. “Procurement”
includes all the functions that pertain to the obtaining of any supply,
service or construction, including description of requirements, selection
and solicitation of sources, preparation and award of contract and
all phases of contract administration.
Procurement transaction
means all functions that pertain to the obtaining of any
goods, services or construction, including description of requirements,
selection and solicitation of sources, preparation and award of contract
and all phases of contract administration.
Proprietary article
means an item made and marketed by a person or persons having
the exclusive right to manufacture and sell it.
Proprietary information
is defined as any information which is not generally known
to competitors and which provides a competitive advantage. Unrestricted
disclosure of proprietary information places it in the public domain.
Protest
means a complaint about a City administrative action or decision
brought by a bidder or vendor to the appropriate administrative section
with the intention of receiving a remedial result.
Public employee
means any person employed by the City, including elected
officials and appointed members of boards and commissions.
Purchase order
means a purchaser’s written document to a supplier
formally stating all terms and conditions of a proposed transaction.
Purchasing
means the Purchasing Division, a division of the Financial
Operations Division of the Administration Department.
Purchasing manual
means documents which set forth the City’s rules and
regulations for the Purchasing Division’s relations with suppliers
and with other departments and prescribes the procedures to follow.
Quotation
means generally a sales proposal including price, sales terms
and conditions; a price statement as an offer; a bid.
Request for proposal (RFP)
means a request for an offer by one party to another of terms
and conditions with references to some work or undertaking. “RFP”
means all documents, whether attached or incorporated by reference,
utilized for soliciting proposals. Also known as competitive negotiation.
Request for quotation (RFQ)
means a type of formal solicitation including written quotes
from vendors. Used for purchases from $10,000 to $25,000. Formal RFQ
responses are due at a specified date and time.
Requirements contracts
means an indefinite-quantity agreement in which the purchaser
is obligated to order and the vendor is obligated to supply all of
the purchaser’s normal requirements for a specified price during
a specified period.
Requisition
means an internal document by which a functional department
such as Stores, Maintenance, or Production sends to the Purchasing
Division details of materials to meet their needs, replenish stocks
or obtain materials for specific jobs or contracts.
Responsible bidder
means a person who has the capability in all respects to
perform fully the contract requirements and the tenacity, perseverance,
experience, integrity, reliability, capacity, facilities, equipment
and credit which shall assure good faith performance.
Responsive bidder
means a bidder whose bid does not vary from the specifications
and terms set out by the City in the bid documents.
Scrap
means material that is damaged, defective or deteriorated
to the extent that it has no value except for its basic material content.
Sealed bid
means a bid submitted in a sealed envelope to prevent dissemination
of its contents before the deadline for the submission of all bids;
usually required by the purchasing authority on major procurements
to ensure fair competition among bidders.
Service contract
means a contract that calls for a contractor’s time
and effort rather than for a concrete end product.
Services
means the furnishing of labor, time or effort.
Software
means a set of programs, procedures and possibly associated
documentation concerned with the operation of a data processing system.
Sole source purchase
means the purchase of a commodity which can only be purchased
from one supplier, usually because of its technological, specialized
or unique character.
Solicitation
means the process of notifying prospective vendors that the
City wishes to receive bids or proposals to provide goods or services.
The process might consist of public advertising, the mailing of invitations
for bid or requests for proposal, the posting of notices, telephone
calls to prospective vendors, etc.
State
means State of Colorado.
Tabulation of bids
means the recording of bids and bidding data that were submitted
in response to a specific invitation for the purposes of comparison,
analysis and recordkeeping.
Term contracts
means contracts which establish a source of supply for a
good or service for a specified period of time.
Transaction
means any matter under consideration or considered by a public
employee on which official action is taken or contemplated.
User agency
means any department, commission, board or public agency
requiring supplies, services or construction procured pursuant to
the City’s purchasing rules and regulations.
Vendor
means any firm, individual, corporation, agent or company
who may desire to quote on the City’s requirements or who wants
to purchase items offered for sale by the City; a supplier.
(Res. 04-12 (§ 22.1), 1-16-12)