Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 41-50 of 80 results for “T”

  • TOC


    See Also: Theory of Constraints (TOC)

  • Token Bid

    A perfunctory offer submitted by a bidder with no serious intent of being the lowest bidder, usually submitted when the bidder wishes to maintain eligibility on the bidders list, or as a collusive device.

  • Tolerance

    A specified allowance for variation in weight, size, or other designated measurement; the range of allowable deviation within which an item or service is classified as acceptable.

  • Tort

    A private or civil wrong or injury other than breach of contract, for which the court will provide a remedy in the form of an action for damages. (Black's Law Dictionary)

  • Total Cost of Ownership (TCO)

    A measure of all of the cost components associated with the procurement of a product or service. The sum of all fixed and variable costs attributed to a product or service. A philosophy for understanding all supply chain related costs of doing business with a particular ​supplier for a particular good or service. (Burt, Dobler, & Starling, 2003)

  • Total Quality Management (TQM)

    Received recognition in the 1980s in answer to the increasing need for firms to compete on a quality basis. The International Organization for Standardization defined TQM as “a management approach to an organization centered on quality, based on the participation of all of its members, and aiming at long-term success through customer satisfaction and benefits to the members of the organization and to society. Other concepts such as Continuous Improvement, Just-In-Time, Quality Circles, and Six Sigma were part of the TQM approach. (Martin & Miller, 2006)

    See Also: Continuous Improvement

  • Total Supply

    A concept of purchasing, the objective of which is to plan in advance and provide for the broadest scope of purchasing and purchasing-related activities as possible, to minimize costs, increase managerial effectiveness, and improve operational efficiency. It is concerned not only with ordering, but also with requirements planning, logistics, and general procurement management.

  • TQM


    See Also: Total Quality Management (TQM)

  • Tracing

    Trying to locate a shipment that has been reported undelivered by the consignee; finding the current status of the shipment. Tracing has become more effective through the use of technology, such as radio frequency identification (RFID). (Martin & Miller, 2006)

  • Trade Acceptance

    A non-interest bearing, negotiable bill of exchange or draft covering the sale of goods, drawn by the contractor and accepted by the purchaser; may include the purchaser’s specifications in place of payment.