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Administrative Policy & Procedures Manual » PaCS Manual » 000 Introductory Material.

OSU PaCS 002: Definitions

Procurement and Contract Services
Section 000: Introductory Material
Effective: 01/01/1998
Revised: 04/27/2005


A

Agency Number

A code defining an institution within the State System of Higher Education. The Agency Number for Oregon State University is 580-300.

Addendum or Addenda

An addition or deletion to, a material change in, or general interest explanation of a solicitation document. Addenda will be labeled as such and available to all interested entities.

Amendment

A document which changes the terms or conditions of a contract.

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B

C

Campus Freight

A section of Business Services that is responsible for handling freight delivery and freight claim processing information.

Change Order

An amendment to a construction contract required to document a change in the quantity or type of services or materials to be provided under the contract.

Closing

The date and time announced in a solicitation document as the deadline for submitting offers.

Code of Ethics (OAR 580-040-0205)

Adopted by the State Board of Higher Education in OAR 580-040-0205, the Code of Ethics applies to University employees who perform contracting and purchasing.

  • First give consideration to the objectives and policies of OSSHE and the institution;
  • Encourage all segments of society to participate by demonstrating support for emerging small, disadvantaged, and minority-owned and women-owned businesses, and Qualified Rehabilitation Facilities.

Competitive Process

The process of procuring goods and services by fair and open competition, under varying market conditions, with the intent of assuring that contracts or purchase orders are awarded equitably and economically using various factors in determining equity and economy.

Construction Manager/General Contractor (CM/GC)

A method of construction contracting whereby the construction contractor is selected based on qualifications early in the design process in order to provide construction management services as well as perform as the general contractor for the project.  The CM/GC works with the design team to provide constructability review, construction estimates as the project is developed, propose alternate materials or method options in order to maintain quality while reducing costs, etc.

Consultants

Architects, engineers, planners, land surveyors, appraisers, managers and related professional consultants.

Contract

A written agreement that may include OSU’s solicitation document and accepted portions of a bid or proposal between OSU and the contractor describing the work to be done and the obligations of the parties.  “Contract” can also mean Purchase Order or Price Agreement.

Contractor (Procurement)

The individual, firm, corporation, or entity awarded the contract to furnish OSU the goods, services or work procured through a competitive process.

Cooperative Agreement

An agreement that provides for a mutual undertaking by the awarding agency and the other parties performing the research.  Both parties take part in the project and are mutually interested in the aims and benefits, even though there may be a difference in the scope of that interest.

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D

Days

Calendar days, including weekdays, weekends, and holidays, unless otherwise specified.

Delegated Authority

The dollar threshold extended to OSU departments  to purchase goods or services directly from vendors. 

Departmental Requisition

A form used by OSU departments to initiate purchases above their delegated authority.  The form is sent to PaCC to conduct the solicitation.  The form can also be used by departments  when procuring goods or services within  their delegated authority.

Department of Justice (DOJ) Legal Sufficiency Review

Before a contract is binding on the State of Oregon, and before any service may be performed or payment may be made under the Public Contract, the Attorney General must approve for legal sufficiency:

Design/Build Contract

A form of construction contract whereby the both design and construction is contracted for through one legal entity. 

Direct Costs

The cost of materials, labor, equipment, and machinery required for execution of the work; and the additional costs of field personnel directly attributable to the Work.

Disadvantaged Business Enterprise (DBE)

A business that meets the eligibility standards set out in OAR 445-050-0020 and 49 CFR 26.

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E

Emergency

Circumstances that could not have been reasonably foreseen that create a substantial risk of loss, damage, interruption of services or threat to the public health or safety that require prompt execution of a Contract to remedy the condition. 

Energy Savings Performance Contract

A form of contract whereby a single entity is contracted to perform studies of energy usage in a building; make recommendations as to improvements that could be made to improve energy efficiency, including estimated energy savings associated with each option; design and construct the options selected; and guarantee achievement of the projected savings or payment of the difference between actual energy costs and the projected savings over a pre-determined period of time.

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F

Final Completion

The final completion of all requirements under the Contract, including Contract Closeout and the final payment and all retainage, if any, released.

FOB (Free on Board)

A trade term requiring the seller to deliver goods on board a vessel designated by the buyer.   When used in trade terms, the word “free” means the seller has an obligation to deliver goods to a named place for transfer to a carrier.  Designates who is to pay freight charges.  Depending on FOB point (Shipper Point or Destination) determines who owns the goods and at what point title transfers.

FOB Destination, Freight collect or Prepaid

FOB Destination: May be seen abbreviated as “D”.

  1. Transportation is arranged by shipper.
  2. Title of goods does not pass from shipper to buyer until goods are delivered to buyer’s dock.
  3. Shipper is responsible for filing any claims, provided the buyer takes appropriate action upon receipt.
  4. Shipper is responsible for paying all transportation charges.

FOB Shipping Point

FOB Shipping Point: May be seen abbreviated as “SP”.

  1. Transportation is customarily arranged by shipper but, at buyer’s request, can be arranged by buyer.
  2. Title of goods passes from shipper to buyer once the goods leave shipper’s dock.
  3. The buyer is responsible for filing any claims.
  4. Transportation charges will be paid by the consignee, in this case OSU.

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G

General Conditions

The document which sets out terms and conditions of the contract or purchase order. 

Grant

An agreement that provides for an agency to furnish money, property, or materials to a recipient of the grant (or grantee).  The grantee has freedom to pursue the grant’s stated purpose.  The agency does not specify the manner of performance of the work and is not substantially involved in it.

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H

I

Interagency Agreement

An agreement between two different agencies of the State of Oregon.

Interagency Personnel Agreement (IPA)

These agreements are usually associated with a federal agency and allow OSO employees to work for an agency for a specific period of time at their determined location without losing benefits and status as an OSU employee.

Intergovernmental Agreement

An agreement between two different governmental agencies.

Invitation to Bid (ITB)

A solicitation document calling competitive bids in which specification, price and delivery (or project completion) are the predominant award criteria.

Invoice

A form used by vendors to request payment for goods or services provided.  The invoice will state the description of the item(s) or service(s), price(s) charged, terms of payment, discounts (if any) allowed, freight charges (if any) included and preferably, referencing the purchase order.

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J

K

Kickback

Any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind that is provided directly or indirectly to any prime contractor, prime contractor employee, subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or in connection with a subcontract relating to a prime contract.

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L

M

Memberships

Requests by departments or individuals to join a specific organization as a representative of Oregon State University.

Memorandums of Understanding (MOU)

An agreement similar to a cooperative agreement that provides for a mutual undertaking between two or more parties to perform research.  All parties take part in the project and are mutually interested in the aims and benefits, even though there may be a difference in the scope of that interest.

Minority Business Enterprise" or "MBE"

A business that meets the eligibility standards set out in OAR 445-050-0030

Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Emerging Small Business (ESB)

Also called Certified Status Vendors. The purpose of which is to ensure that minorities, women, and emerging small businesses have equal access to contracting opportunities and the OSU will procure goods and services from qualified nonprofit agencies.

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N

 Notice to Proceed

Official notice to begin work given to the contractor by PaCC when all required documents pertaining to a contract have been received and approved, and the contract has been signed (executed).

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O

Office of Post Award Administration

A department on campus responsible for approving and auditing all expenditures from federal contract or grant funds.

OMWESB

The Office of Minority, Women and Emerging Small Business in the Oregon Department of Consumer and Business Services.

Opening

The date, time, and place announced in a solicitation document for public opening of written sealed offers.

Oregon Administrative Rule (OAR)

Agency rules adopted under the Oregon Administrative Procedures Act.

Oregon Revised Statues (ORS)

Statues of the State of Oregon.

Oregon University System (OUS)

The Oregon public higher education system that oversees and provides services to Oregon’s six state universities (Eastern Oregon University, Oregon Institute of Technology, Oregon State University, Portland State University, Southern Oregon University, University of Oregon and Western Oregon University). 

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P

Payment and Performance Bonds

Legal documents issued by a Surety which guarantee payment for all work, materials, and labor required to complete construction of a contracted project, should the contractor become insolvent or for some other reason be unable to complete the work or fail to pay suppliers and/or workers amounts required by the contract. 

Price Agreement

A contract issued by the State of Oregon or OSU PaCC for the purchase of goods or services from a specific vendor.  

Principal Investigator

An individual within a department assigned the duty of supervising expenditure of research or grant funds.

Printing and Mailing Services

OSU department responsible for envelope and paper purchases as well as printing and mailing services.

Professional Services

Services performed by architects, engineers, planners, land surveyors, appraisers, managers and related professional consultants for the design, evaluation and management of construction projects or real property.

Proposer

An entity who submits a proposal in response to a Request for Proposals

Public Improvement

Projects for construction, reconstruction or major renovation on real property by or for an institution where the contract price exceeds $25,000.

Public Work

Includes, but is not limited to, roads, highways, buildings, structures and improvements of all types, the construction, reconstruction, renovation or painting of which is carried on or contracted for by OSU to serve the public interest.

Punchlist

The list of work yet to be completed or deficiencies which need to be corrected in order to achieve Final Completion of the Contract.

Purchase Order (PO)

The FIS (Financial Information System) PO specifies commodities ordered from a specific vendor, and the price, terms, and conditions of that order.

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Q

Qualified Rehabilitation Facility (QRF)

A nonprofit organization that trains and puts Oregonians with disabilities to work.  QRFs are registered and reviewed through the Oregon Department of Administrative Services. 

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R

Radiation Safety Office

An OSU department responsible for monitoring and controlling the acquisition and use of radioactive material within Oregon State University.

Request for Information (RFI)

A written document soliciting information regarding products or services that OSU is interested in procuring. An RFI describes the purpose of the procurement and the method to be used in evaluating the responses received.

Request for Qualifications (RFQ) (Construction)

A Request for Qualifications is a document which provides a general description of a proposed project; indicates the type of Consultant services needed; and requests each prospective respondent to provide a written response setting forth the respondent's specific experience and qualifications of performing the type of services required.

Request for Quotes (RFQ) (Procurement)

An informal solicitation whereby bids or quotes are obtained for items or services that have clearly defined specifications and requirements.  RFQ’s are obtained at a dollar value of less than $50,000.

Request for Proposals (RFP) (Construction)

A Request for Proposals is a document calling for proposals for specific services, and may be used for both professional and construction services.

Request for Proposal (RFP) (Procurement)

A solicitation of written, competitive proposals or offers, to be used as a basis for making an acquisition, or entering into a contract when specification and price will not necessarily be the predominant award criteria.

Requisition

A term used to indicate any request for goods or services made either verbally or by use of a Departmental Requisition form.

Responsive Bid or Proposal

As defined in OAR 576-008-0277: "responsive bid or proposal" is one that complies in all material respects with an Invitation to Bid or Request for Proposals and with all prescribed bidding and proposal procedures and requirements. A "nonresponsive bid or proposal" is one that does not meet all material aspects of an Invitation to Bid or a Request for Proposal or that does not comply with all prescribed bidding and proposal procedures and requirements.

Responsible Bidder or Proposer

As defined in OAR 576-008-0275:   "responsible bidder or proposer" is an individual, firm, corporation, or entity who has the capability in all respects to perform fully the contract requirements, the integrity and reliability that will assure good faith performance, and who has not been disqualified by OSSHE or the University Purchasing Department.

Retainage

A sum, not to exceed 5% of the total value of work completed in the pay period, withheld from a construction contractor’s monthly pay request.

Retainer Agreements

Contracts entered into by the Chancellor’s Office of the Oregon University System, which provide access to both construction and professional services. 

Retainer Agreement (Construction Contracting)

An agreement by which pursuant to a formal construction Request for Proposals or bid process, multiple contractors are authorized to provide specific supplies, equipment or to perform specific services for OUS or it’s institutions in response to requests for price quotations.

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S

Ship-To Code

Ship to codes are loaded in the Financial Information System (FIS).  The code is entered on FIS POs to identify the shipping address of an OSU Department or administrative group.  Contact PaCC if a change is needed or to add a new code.

Solicitation Document

An Invitation to Bid or Request for Proposals, Request for Quote, Request for Qualifications, including all documents incorporated by reference.

Sole Source Procurement

The only vendor of a particular product or service reasonably available.  If OSU procures a product or service that is available from only one vendor, documentation must be maintained to support the determination that the product or service is available only from that one seller.

Specification

Any description of the physical or functional characteristics, or of the nature of a supply, service or construction item, including any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery and the quantities or qualities of materials to be furnished under the Contract. Specifications generally will state the result to be obtained and may, on occasion, describe the method and manner of doing the Work to be performed. 

Subaward/Subcontract/Subagreement/Subgrant

An agreement between a party of an original contract/grant/agreement and a third party, to provide all or a specified part of the work or materials required in the original award. 

Substantial Completion

The date when the Owner accepts in writing the construction as having reached that state of completion when it may be used or occupied for its intended purpose.  Substantial Completion of facilities with operating systems occurs only after thirty (30) continuous Days of successful, trouble-free operation of the operating systems.

Supplement

An amendment to a contract, adding specific services for an agreed-upon fee.

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T

Tax ID Number

A number assigned by the Internal Revenue Service identifying a company or agency and its tax status. (e.g. OSU’s tax ID number is 93-6001786).

Terms

Defines the length of time before payment is due and a discount (if any) is allowed.

Total Contracted Project Value

BOLI’s definition is: all purchased/contracted costs specifically applicable to a project.  If a piece of equipment (fume hood, furniture, carpet, etc.) is purchased specifically for the project, and a contractor is hired to do the electrical work, those costs are applied to the “total contracted project value”.  OSU staff labor to do painting or carpentry would not apply to the “total contracted project value”. 

Travel and Moving Reimbursement Form

A form used by departments to authorize payment of moving expenses incurred when hiring new employees. A FIS PO is issued to accompany this form when the traveler is using one of the contracted moving companies to move household goods.

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U

Unit Administrator

Department head, division head, director, vice president, provost, dean, manager, or vice provost authorized to determine and assign duties to University employees.

Used Property

Property or equipment used by a previous owner or user for a period of time and recognized in the relevant trade or industry at “used” at the time of University purchase.  It generally does not include property or equipment if the University was the previous user, whether under a lease, as part of a demonstration, trial or pilot project, or similar arrangement.

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V

Vendor

Defines a business or individual as a seller of goods or services to Oregon State University.  A vendor can be entered on an FIS PO, as long as it exists in the system’s Vendor File. If the desired vendor does not exist in the Vendor File, users can call the FIS New Vendors Hotline at 737-5952.

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W

Woman Business Enterprise" or "WBE"

A business that meets the eligibility standards set out in OAR 445-050-0030

Work

The furnishing of all materials, equipment, labor and incidentals necessary to successfully complete any individual item or the entire contract and the timely carrying out and completion of all duties and obligations imposed by a contract.

 

X Y Z

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