Pre-Qualification (of Bidder/Proposer)

The screening of potential suppliers/contractors in which such factors as financial capability, reputation, and management are considered to develop a list of qualified businesses who may then be allowed to submit bids/proposals.

Pre-Solicitation Conference

An informal, typically non-mandatory, meeting inviting comments and suggestions from a representative group of suppliers on the draft of a proposed solicitation; this conference provides useful market analysis information to the buyer; usually used for solicitations involving high technology or complex services.

Preconsumer Material

Material that is recycled before it is used by a consumer. For example, paper mill scraps that are recycled at a paper mill. (EPA)

Predatory Pricing

Temporary price reductions designed to alter market shares or drive out competition. (Business, 2002)

Preference

An advantage given to bidders/proposers in a competition for contract award, which may be granted based on pre-established criteria such as ethnicity, residence, business location, origination of the product or service, business classification (e.g., small business), or other reasons. A governmental bias.

Preferred Stock

A special type of stock whose owners, though not generally having a say in the running of the company, have a claim to profits before other stockholders do. (Ferrell & Hirt, 2002)

Prepaid

A term denoting that transportation charges have been or are to be paid at the point of shipment.

Prepay and Add

A transportation term indicating that the seller pays the carrier and adds the freight charges onto the invoice for goods purchased. (ISM, 2000)

Present Value

The value in current dollars of work, goods, and services to be performed or supplied in the future. Used frequently in long term lease and rental transactions. (Business, 2002)

Prevailing Wage Rate

The rate of wages, including fringe benefits, paid to a majority of the workers in a geographic area for the same type of work on similar projects. (Nash, Schooner, & O’Brien, 1998)

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