Dictionary of Procurement Terms

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Search Results: 41-50 of 88 results for “L”

  • Level-of-Effort (LOE) Contract

    A type of contract stating the work in terms of an amount of effort (usually labor-hours or labor-years) to be performed by specified classes of employees over a given period of time. (Nash, Schooner, & O’Brien, 1998)

  • Leveraged Buyout (LBO)

    A purchase in which a group of investors borrow money from banks and other institutions to acquire a company, using the assets of the purchased company to guarantee repayment of the loan. (Business, 2002)

  • Liability

    A debt or an obligation to make future payment. (Business, 2002)

  • License

    A legal instrument granting permission to do a particular thing, to exercise a certain privilege, to carry on a particular business, or to pursue a certain occupation. When granted by an appropriate government body, licenses are permits allowing a person, firm, or corporation to pursue some occupation or business, subject to regulation. (Black's Law Dictionary, 1990)

  • Lien

    The right exercised by one party to take or keep possession of or to control the property of another for the purpose of satisfying a debt or obligation. (Harney, 1992)

  • Life Cycle Cost (LCC)

    The total cost of ownership over the lifespan of the asset. An analysis technique that takes into account operating, maintenance, the time value of money, disposal, and other associated costs of ownership as well as the residual value of the item.

  • Life Cycle Management

    Includes the four phases of procurement and associated costs of owning assets, namely the acquisition planning phase, the procurement phase, the in-life-use phase, and the disposal phase of the asset.

  • Life Expectancy

    The number of years during which the asset is expected to remain in active use.

  • LIFO


    See Also: Last In-First Out (LIFO)

  • Limitation of Cost

    A provision that limits the total costs for which a contractor can be reimbursed under the terms of a cost-reimbursement contract.