Dictionary of Procurement Terms

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

Search the Dictionary of Terms

Search Results: 1321-1330 of 2469 results

  • 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.

  • Limited Liability Company (LLC)

    A form of business ownership that provides limited liability and taxation like a partnership, but places fewer restrictions on shareholders. (Ferrell & Hirt, 2002)

  • Limited Warranty

    A written guarantee with respect to a product or service that specifically restricts the conditions under which that guarantee will be honored.

  • Line and Staff

    An organizational structure having a traditional line relationship between superiors and subordinates and also specialized managers, called staff managers, who are available to assist line managers. (Ferrell & Hirt, 2002)