The Vendor Manual by olliegoblue27

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									      The Vendor Manual




How to do business with the State
  Vendor Management Class


                1
                         STATE OF ARKANSAS

                         THE VENDOR CLASS

                          TRAINING MANUAL

                           First Edition (2009)




                              Published by:
                 The Arkansas Office of State Procurement


                    Prepared by OSP Training Team:
                          Amy Stoddard, CPPB




 Instructors                 Phone Number                   Email Address
 Rick Smith                   501-371-6072            rick.smith@dfa.state.ar.us
Amy Stoddard                  501-371-6055          amy.stoddard@dfa.state.ar.us
 Renee Gates                  501-371-6066           renee.gates@dfa.state.ar.us
 Jan Roberts                 501-371-6057             jan.roberts@dfa.state.ar.us
Jackie Mosier                 501-371-6065          jackie.mosier@dfa.state.ar.us
Kurtis Markish                501-324-9322          kurtis.markish@dfa.state.ar.us




                                    2
               The Vendor Class
               Table of Contents

Introduction
Chapter 1          The Law
Chapter 2          Ethics
Chapter 3          Registration
Chapter 4          The Bid Process
  Section 1          All About the Bid
  Section 2          Need to Know Basis
  Section 3          How it’s Handled
  Section 4          Caution to Vendors
  Section 5          What’s the Deal?
Chapter 5          Protests
Chapter 6          OSP Website
Chapter 7          Minority
Closing




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                                           Introduction

This class is primarily for the vendor. State agency personnel may find the information covered
in this class to be of some help but the topics covered here are from the vantage point of the
outside vendor. The topics discussed here will be those that are of particular interest to the
vendor who wishes to do business successfully with various state agencies. Topics to be covered
include, how to register with the Office of State Procurement to become an official vendor, how
to fill out the necessary forms for participating in a formal solicitation, how to correctly follow
the steps in the solicitation process and other important information on the do’s and don’ts of
procurement law and policy.

Vendors that are new to the process of State procurement are encouraged to attend this class in
order to become more familiar with the process and requirements surrounding governmental
procurements; however all vendors are welcome to attend. There is no pre-requisite class.

    1. Use of Acronyms
Acronyms are a way of speeding up the communication method between parties that share the
same knowledge base. Acronyms allow users to quickly reference a item or theory and then
move on to the next topic at hand. If we use an acronym that you don’t understand or recognize
let us know. A list of commonly used acronyms has been provided in Appendix A.

    2. This is not an AASIS class
This is not an AASIS class. AASIS procedures and policy’s may be referenced in this manual as
they effect the way certain procurement transactions are handled; however, AASIS functions,
directions and guidelines will not be covered in the manual or in the class discussion.




                                                     RFP
                                            NIGP       IFB
                                                                CB
                                             OSP      PCS
                                                              SS




                                                 4
                                     Chapter 1 – The Law

Where to download a copy of the law
 • A copy of the Arkansas State Procurement Law can be downloaded from the Office of State
   Procurement website at: http://www.state.ar.us/dfa/procurement/pro_laws.html. The most
   recent version of the law will be September 2007; the law is not updated every year. The law
   is revised when changes are made by the legislature, when the rules are updated by the Office
   of State Procurement, or when a protest or lawsuit dictates that an update is required.

 • It is highly recommended that everyone download a copy of the State Procurement Laws to
   use as a reference and guideline. Everything that State Agencies and the Office of State
   Procurement process will follow the procedures as outlined in the State Procurement Law.
   By reading the State Procurement Law you will become familiar with the rules and
   guidelines that the State Agencies and Office of State Procurement must follow. Knowledge
   is the Key, so the more you know, the more successful you will become.

How to read the law
 • When looking through the law you will notice 2 types of numbers. A string of numbers that
   are separated by dashes; for example 19-11-229 and a string of numbers that have the letter
   “R” in front; for example R1-19-11-229.
 • The first string of numbers (19-11-229) identifies the LAW.
 • The second string of numbers with the R in front (R1-19-11-229) identifies the RULE.
 • In order to read the law, you must break down the string of numbers:
       19 – Tells you what volume
       11 – Tells you what chapter
       2 – Tells you what subchapter
       29 – Tells you what verse

Law vs. Rules
 • Laws are passed by the Legislatures whereas Rules are written by the Office of State
   Procurement.
 • Laws are written in a more legal and professional language whereas Rules are written in
   laymen’s terms. This makes the rules a lot easier to understand.
 • There can be multiple rules for each law.
 • The Rules explain and offer clarification for the law.

FOIA-Arkansas Vendors
 • When requesting information from a State Agency or from the Office of State Procurement,
   there are special requirements that must be followed.
 • FOIA requests must be made in writing to the appropriate Buyer or Custodian of Record at
   the Agency or Office of State Procurement. (Wherever the records are being kept.)
 • The notice must be specific about what material is being requested.
 • There is a charge for the copies being made that must be paid before the material can be
   picked up.
 • The Buyer or Custodian of Records must gain the approval of the other parties before any
   information can be released.
 • If the other party objects they must explain why and the decision is made by the Buyer or
   Custodian of Records to determine if this is a legitimate justification.
 • FOIA requests do not apply to vendors who are outside the State of Arkansas.


                                               5
Where to send FOIA Request
 • FOIA request must be sent to the Buyer or Custodian of Record. This differs for each agency,
   so check with the purchasing department to find out who this person would be for the
   particular bid you are working on.

R4:19-11-217 Vendor List
The procurement law requires that the Office of State Procurement maintain a vendor list. The
code reads as follows:
       R4: 19-11-217 Vendors List
               (a) Vendors list. The Office of State Procurement and each agency procurement
                 official shall maintain a vendors list.
               (b) Application. A business shall make application on the Office of State
                 Procurement web site at www.arkansas.gov/dfa/procurement to have its name
                 placed on the vendor lists for the commodities and services it wishes to supply
                 or provide. The business must provide complete information requested in the
                 application before it will be considered for placement on a vendors list.
               (c) Determination. The procurement agencies may refuse to list any prospective
                 bidder not making proper application. The prospective bidder has the burden of
                 showing that they meet the qualifications for inclusion on the vendors list on
                 which it seeks to be listed. The prospective bidder will be promptly advised if
                 their application is disapproved and the reasons for disapproval shall be stated.
               (d) Reapplication. Any prospective bidder whose application is disapproved may
                 reapply following the date of disapproval.
               (e) Removal.
                 (1) Any bidder who requests in writing to be removed from the vendors list
                 shall be removed.
                 (2) Bidders who have been suspended and/or debarred shall be removed from
                 the vendors list.
               (f) Vendors seeking to contract with colleges and universities need to contact
                 those institutions.

Define Arkansas Vendors 19-11-259 (a) Definitions
State procurement law defines an Arkansas vendor as:
(B) “Firm resident in Arkansas” means any individual, partnership, association, or corporation,
whether domestic or foreign, who:
        (i) Maintains at least one (1) staffed office in this state;
        (ii) For not fewer than two (2) successive years immediately prior to submitting a bid,
        has paid taxes under the Arkansas Employment Security Law, § 11-10-101 et seq., unless
        exempt, and either the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the
        Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., on any property used or
        intended to be used for or in connection with the firm's business; and Within the two-year
        period, has paid any taxes to one (1) or more counties, school districts, or municipalities
        of the State of Arkansas on either real or personal property used or intended to be used or
        in connection with the firm's business.




                                                 6
Define Responsive/Responsible
 • “Responsible bidder or offeror” means a person who has the capability in all respects to
   perform fully the contract requirements and the integrity and reliability that will assure good
   faith performance;
 • “Responsive bidder” means a person who has submitted a bid under § 19-11-229, which
   refers to competitive sealed bidding, which conforms in all material respects to the invitation
   for bids, including the specifications set forth in the invitation;

Tie Bids
 • R7-19-11-229 Competitive Sealed Bidding
       (3) Tie bids. In the event the lowest prices offered result in a tie bid, the person
       responsible for awarding a contract must ensure that all offers meet specifications. An
       award will be made by lot (flip of a coin). The coin flip will be done in the presence of a
       witness by the person responsible for awarding the contract. The witness must be an
       employee of the State of Arkansas. A documentation of the coin flip must be included on
       the tabulation or bid history sheet and be signed by both parties.
 • R2:19-11-230 Competitive Sealed Proposals
       (c) Tie bids. In the event the evaluation of criteria and awarding of points result in a tie
       bid, the person responsible for awarding a contract must ensure that all offers meet
       specifications. An award will be made by lot (flip of a coin). The coin flip will be done in
       the presence of a witness by the person responsible for awarding the contract. The
       witness must be an employee of the State of Arkansas. A documentation of the coin flip
       must be included on the tabulation or bid history sheet and be signed by both parties.

Past Performance (3 years) R7:19-11-229
(E) Past Performance
        (i) The past performance of a bidder on a state contract may be used by the procurement
agency to determine whether the bidder is “responsible”. Past performance must be supported
by written documentation not greater than three years old. Documentation may be a formal
Vendor Performance Report, an informal memo (signed and dated) or any other appropriate
authenticated notation of performance to the vendor file. Reports, memos and files may be in
electronic form. Past performance may be positive or negative.
        (ii) Past performance on contracts from other Arkansas State Agencies may also be used
for evaluation. Supporting documentation should be provided.

VPR’s; Good and Bad
Vendor Performance Reports are used for Past Performance (see above) and during
Suspension/Debarment phases. These reports must be turned into OSP in a timely manner
(usually within 2 weeks of the occurring incident). The agency will begin the process by filling
out the top half of the VPR and forwarding a copy of the report to both the vendor and to OSP. It
is then the vendor’s responsibility to respond to the report by describing how they intend to solve
the problem described. The vendor has 7 calendar days in which to respond. The response is to
be sent directly to OSP. If OSP does not find the response to be adequate or acceptable, the
vendor may be required to come to OSP for a meeting with the OSP Director and an Agency
representative. If a mutually agreeable solution cannot be reached, the Director of OSP has the
right to hold the vendor in breach of the contract and to find a suitable alternative to the contract.

If multiple VPRs are on file for a particular vendor, this can be used as a means of preventing
this vendor from receiving an award. See Past Performance above.


                                                  7
Equal Employment Opportunity Policy
 • Every vendor is required to submit a copy of their Equal Employment Opportunity Policy
   when submitting a response to a bid or proposal over $25,000, when applying to a Sole
   Source Request, or when renewing any contract of any dollar amount.
 • Once the policy statement has been submitted, it is the responsibility of the vendor to keep
   this document updated.
 • If the vendor does not have an EEO Policy, a notification on company letterhead to that
   effect must be submitted and kept on file.

19-11-105 Illegal Immigrant clause
Each vendor is required to complete the Illegal Immigrant disclosure form that can be found on
the OSP website at: https://www.ark.org/dfa/immigrant/index.php/disclosure/submit/new. A new
form must be completed with EACH contract; when completing this form, be sure to print off a
screen shot of the page just before clicking on the submit button and including that printed page
with your bid or proposal response.

19-11-231 Small procurements
Any purchase that would fall under the $5,000 limit does not require any formal procurement
solicitation. Split procurements are a concern in this area.

19-11-222 Exclusive Jurisdiction
OSP is the only agency that has the authority by lay to solicit these items, and the resulting
contracts are mandatory for all state agencies. 19-11-222 list the items that are under the
exclusive jurisdiction of OSP.

19-11-222. Exclusive jurisdiction over procurement
(a) The State Procurement Director shall have exclusive jurisdiction over the procurement of:
        (1) Items subject to Arkansas Constitution, Amendment 54;
        (2) Wholesale gasoline, oil, and related products;
        (3) Tires;
        (4) Passenger motor vehicles and trucks, except highway construction and highway
maintenance equipment or any specialized type of equipment used in highway construction,
except as otherwise provided in this subchapter;
        (5) Paper products;
        (6) New and used school buses for state agencies;
        (7) A purchasing card program and travel card program to include implementation and
administration; and
        (8) An electronic commerce procurement solution to include planning and administration
consistent with the established financial systems of the state.
(b) As used in this section:
        (1) “Printing” means the process of transferring images, by the use of standard industrial
type printer ink, upon documents such as letterhead, envelopes, pamphlets, booklets, and forms;
        (2) “Stationery” means imprinted letterhead and envelopes used by the General
Assembly and other departments of state government to identify an individual department,
agency, board, commission, etc.; and
        (3) “Supplies” means paper and inks used to produce stationery.




                                                 8
                                        Chapter 2 – Ethics

Ethics Law
19-11-1704 through 19-11-171; this section of the Procurement code is the Ethics law. This
section covers everything from penalties to conflicts of interest.

98-04 Disclosure form
   • The disclosure form must be filled out in both the Professional Consulting Services &
       Commodity bid arena. The disclosure form is required for all new contracts over $25,
       000, all renewals, and all sole source contracts. To be on the safe side it would be in your
       best interest to send in a disclosure form with every bid or proposal response to avoid the
       appearance of impropriety.

Positive Hit on 98-04
   • 98-04 is the Grant and Contract disclosure form. Vendors are to specify relationships that
       may exist with state employees, Board and Commission members, and Senate and House
       of Representative members. We call this a “Positive hit” when a vendor report
       information on this form. By reporting information on this form you are not prevented
       from receiving an award if eligible. Not disclosing could get you into a lot of trouble.

Gratuities & Gifts
   • Gifts to State employees may not seem to be such a big deal especially if they are
      promotional items, however purchasing agents and buyers should never receive any items
      from a vendor for any reason.
   • Gifts and donations of any dollar amount are not recommended. Some agencies may have
      a policy of allowing their employee’s to accept a gift or promotional item if the value is
      under $10, however even this can shed a bad light on both the employee and the vendor.

Conflict of Interest
  • The procurement buyer or agent represents a strong ethical standard; therefore, we do not
       accept lunches, or any gifts from the bidders.

   •   Conflicts of interest occur when one person benefits over the agency, division, or
       department. Vendors are strongly encouraged to not offer gifts, gratuities, favors,
       freebies, food or promotional items of any kind to buyers, purchasing agents, Agency
       Purchasing Officers and agency personnel as these items can be seen as a conflict of
       interest.




                                                 9
                                     Chapter 3 – Registration

Vendor registration page
   • Vendors may register with the Office of State Procurement as a vendor online.
   • This registration is tied to the online bidding notification system. The registration is fairly
      short and to the point; it does require the vendor to establish a user name and password
      and there is a $25 annual fee.
   • The online vendor registration page may be found at:
      http://www.state.ar.us/dfa/procurement/pro_vendor.html

$25 Fee is an Annual Fee – Credit Card Only
   • The $25 annual fee can only be paid online with a valid credit card. The Office of State
      Procurement is not set up to accept personal checks, money orders, or cash.
   • At this time, paying online with a valid credit card is the only method of payment that is
      acceptable. The online registration website will accept Visa, MasterCard, or Discover.

Internet Connectivity
The office of State Procurement has a computer set up in our reception area that may be used by
the vendor for registration. If the vendor is interested in checking the website for a posted bid or
proposal; they may also use a local library or any other public computer.

Commodity Groups
A Commodity Group is a grouping of related items.

During the registration process the vendor may select the commodity group(s) for the items they
wish to bid. The vendor may use more than one commodity group to get a “good base for
notification.”

Commodity list is open – “as many as they want”
There is no limit to the number of commodity groups the vendor can sign up for. The commodity
groups are broken down into fields such as food, vehicles, and so on. The vendor may choose as
many of the groups as they wish. A list of the commodity groups is provided in Appendix B.

Register to award; not to bid
Vendors do not have to be registered with the Office of State Procurement in order to submit a
response to a bid or proposal; however, the vendor DOES have to be a registered vendor in order
to receive an award. The vendor must have a current, active, working AASIS number in order to
receive payment through the state’s accounting system.

W9 forms
All vendors must fill out, sign and turn in a W9 form to the Office of State Procurement. This
form must be processed and match up with the IRS records before any payments can be made.
Vendors submitting an illegible or incomplete W9 form will not receive payment.

IRS Name
When registering with the Office of State Procurement, the name on all registration forms,
whether paper or online, must match the name that is on file with the IRS. If the names do not
match, this will cause a delay in processing the paperwork, thus causing a delay in getting the
registration finalized, and a delay in award and/or payment.


                                                 10
Changes must be initiated by the vendor
Changes in address, EEOP, Tax information, or business status must be requested by the vendor.
State Agencies are not allowed to submit a change request on behalf of a vendor. Vendor
representatives who have the authority to request changes are: Owners or a partner, or
President/Vice President of a corporation. When making a request for a change, you must
identify your self and provide evidence that you have the appropriate authority to request the
change.

Questions/Concerns
If you have any questions or concerns regarding registering as a vendor, please contract the
Office of State Procurement’s support services.

Shelia Kinslow            Shelia.Kinslow@dfa.state.ar.us            501-683-2220
Connela Johnson           Connela.Johnson@dfa.state.ar.us           501-683-3885
Debra Wehagan             Debra.Wehagan@dfa.state.ar.us             501-371-6076
Loretta Weathers          Loretta.Weathers@dfa.state.ar.us          501-371-6056




                                               11
                                    Chapter 4 The Bid Process
                                   Section 1 – All About the Bid

Bid procedures
Bid procedures are complex and lengthy. We will be covering them through out this chapter and
course. As we do, we will try to highlight the parts of the procedures that are of the most
importance to the vendor.

Bid Delivery Location For Opening
It is the vendor’s responsibility for getting their response to the proper bid opening location
before the deadline. Under no circumstance will a late bid be accepted.

Extraneous Bid Materials
• When preparing a response to a solicitation, make it a point to only include the essentials. Do
   not include any extras. This will not earn you any extra points in the evaluation process.
• Including promotional items with your response is seen as offering gratuities.
• Vendors are strongly encouraged to not offer gifts, gratuities, favors, freebies, or promotional
   items of any kind to buyers, purchasing agents, Agency Purchasing Officers and agency
   personnel as these items can be seen as a conflict of interest.

No electronic bid submission
All responses to any formal solicitation must be submitted in hard or printed form. The Office of
State Procurement is not set up to receive a solicitation response in electronic form. Even though
some solicitations ask that vendors include with the response a copy of all material on CD, OSP
will still require an original signature (in ink) to keep on file.

Bid Submission Requirements
READ THE BID/PROPOSAL CAREFULLY. Some solicitations may require certificates, bid
bonds or other special requirements. Check the number of copies that must be submitted. Are
CD’s required? Be sure to check for signatures (that must be in INK); and be sure to complete
the pricing (which also must be in ink). More bids are disqualified because the vendor has not
READ the bid and did not fill out the solicitation responsively.

Correcting Mistakes
• If a vendor makes a mistake in the extension of the totals (with regard to price), in the State
   of Arkansas, the unit price prevails on the bid document. Any clarification or additional
   information from the vendor may be requested.
• If the vendor realized there has been an error in the bid, the vendor is allowed to make
   changes before the bid opening, once proof of authority to make the change has been
   established. The bid is initialed by the vendor, resealed, time stamped and resubmitted.
• Corrections may be made by the vendor prior to the bid opening. It is the responsibility of the
   buyer to verify that the individual requesting to make the corrections/changes is truly a
   representative of the organization with the authority to make such a request. Vendor must
   show proof (picture ID) before receiving their bid.

Late Bid Policy
Late bids will NOT be accepted; NO EXCEPTIONS. Bids/proposals must be turned into the
appropriate agency at the appropriate time and place. State Procurement law reads as follows:

“R5:19-11-229. Competitive sealed bidding.
Bid submission.
                                                 12
(1) Bidders shall submit bids at the place and on or before the date and time set in the invitation
for bids. Bids received after the date and time designated for bid opening are late bids and shall
not be considered.”

Signatures must be in INK
Bids will not be accepted if they are not signed in ink. Pencil, crayon, or water-colors are not a
long lasting media and after being passed through several hands, the mark or signature is no
longer visible much less legible. Be a grown up – use an ink pen to sign the quote, bid, or
proposal. One note: the only ink color we would like for you to stay away from is RED; purple,
green; blue; black, and even pink would be acceptable.

Solicitation Questions
During the solicitation process, the buyers at OSP and the agency contact will answer some
questions over the phone; however the best way to submit questions is via email or fax to OSP.
This way the OSP buyer can make a list of all the questions that have been submitted and post a
collaboration of the answers on the OSP website. This will ensure that all vendors get the same
information.

                                 Section 2 – Need to Know Basis

Time Extensions
Bid openings are only extended if there is an addendum that requires a change in the
specifications or requirements which would necessitate more time for the vendors to prepare an
adequate response.
The agency would therefore adjust the bid opening to allow the vendors more time to prepare
their bid for the change made by the addendum with the expectations of receiving better
responses.

Performance Bonds/Bid Bonds/Letter of Credit/Cashier Check
• Some solicitations may request a bid bond. This is not a common requirement of OSP; ABA
   is more likely to use bonds.
• Performance bonds may be a percentage of the award total or a specific amount. The vendor
   has 10 working days to provide the bond (this is state working days).
• The bond may be a cashiers check, performance bond or irrevocable letter of credit.
• If the vendor is going to provide a letter of credit OSP has a format for the letter to be
   provided.
• Performance bonds may only come from an approved bank that is licensed to do business in
   Arkansas.

Special Delivery Instructions
• The agency may specify special delivery instructions in the solicitation document or on the
   purchase order.
• Examples are special agency hours for delivery, the lack of a loading dock, and the need for
   the item to be delivered to the 3rd floor, and so on.
• It is the vendor’s responsibility to watch for these notes and be aware that these special
   conditions exist.
• The agency is not responsible for unloading the freight if the vendor has been notified ahead
   of time that special conditions exist.



                                                 13
Delivery issues/ Ask Questions
• If the vendor has a question about delivery, time, or location in a solicitation, the vendor
   should contact the buyer; an addendum may need to be issued.
• If the vendor has a question about the deliver, time, or location in a purchase order, the
   vendor should contact the agency. They can provide directions, appointments, and
   instructions on or about their loading docks and facilities.

Anticipation to Award & Waiver
When the apparent low bidder is determined in a solicitation the information is posted on the
OSP website. The posting is for 14 calendar days. The represented agency may request a waiver
of this posting from the director of OSP, but the request must have justification.

                                  Section 3 – How it’s Handled

Prices don’t include sales tax
When bidding on any solicitation, do not include sales tax in the offered prices. The taxes are
added when the Purchase Order is issued in AASIS. There are only a few State Agency’s that are
tax exempt; however the way the state pays taxes is different than the way taxes are figured in
the retail market.

FOIA-Arkansas Vendors
Current OSP policy allows vendors to receive a copy of the “tab sheet” to view. In order to
receive a copy of any other information, the vendor must submit a written FOIA request to the
FOIA Custodian or appropriate Agency Representative. During the FOIA process, all other
vendors participating in the solicitation must be contacted and give consent for the information to
be released. There is a $0.25 per page charge for copies made during a FOIA request.

How long do vendors keep prices firm
The bid requirements will specify how long the vendor will be required to hold the prices firm.
This is one of those times when it is imperative that the vendor READ THE SOLICITATION
DOCUMENT. In a normal situation the requirement may be 90 days; however in an RFP
situation it could be as long as 120 days or more.

Expired contracts can not be extended
Once a contract has expired it cannot be extended. It is the responsibility of the Agency to inform
OSP if they wish to renew a contract and to turn in the appropriate paperwork for renewal.
Contracts will never be extended or renewed without mutual consent of both the vendor and the
agency. OSP requires at least 30 days notice from the agency of intent to renew a contract.

                              Section 4 – Caution to Vendors
                           (AKA: There’s no Crying in Procurement)

Responsibility to check the web
Bids, Addendums, Anticipation to Award, Awards, Notices and Policies are all posted on the
OSP website. It is the vendor’s responsibility and duty to check the website for these items. OSP
and the agency’s they serve will not issue emails or any other notices when items are posted on
the website.




                                                14
Check your math
In all solicitations responses, it is the UNIT PRICE that prevails if there is an error or
discrepancy in the calculations on the solicitation price sheet. Vendors should always double
check their math before submitting a response.

Funding Out Clause (Define)
All solicitations contain a funding out clause. This clause will include a paragraph that allows the
agency to cancel the contract if funds are not made available to them by the legislature. The state
will not pay a penalty for the cancellation of a contract when this clause is put into affect.

Boilerplate Terms
Boilerplate terms are normally drafted by the Legal & Purchasing teams. These terms are added
to the back of the bid, quote, or proposal and typically never changed from one solicitation to the
next. Vendor’s who take exception to the boilerplate terms and conditions are on average
disqualified from any further consideration in the solicitation process.

Vendors and an Evaluation Committee
Vendors may not at any time during the evaluation phase contact any member of the evaluation
team. Vendor’s may not sit in or listen in on the Evaluation Committee meetings or have access
to notes until the entire process has been completed and only then through a formal FOIA
request.

Amendment 54
Is a constitutional amendment; no one is exempt. This has to do with the process of putting “ink
on paper” and does not concern itself with normal office sized computer printers or copiers that
use toner. This topic only covers the large scale print shops & printing presses that use soy ink
and recyclable paper stock. Amendment 54 requires that all printing (ink on paper, not toner) be
competitively bid. There are no exempt agencies to this requirement.

                                  Section 5 – What’s the Deal?

What is expected when responding to an IFB/RFP/Quotes
For all three you can expect fair treatment under the law, a transparent process for each step of
the journey, best value and the best interest for the state.

The differences between IFB/RFP/Quotes

             IFB                                 RFP                           Quote
Mandatory Requirements             Evaluation Committee             Mandatory Requirements
Lowest Price                       Highest Score                    Lowest Price
Awarded to                         Price is not the main            Best Value
Responsive/Responsible             determining factor
Vendor


Estimated & Firm Quantities
• Estimated quantities are a guess and are not guaranteed. Vendor may get more business or
   may get less business associated with the contract, if the numbers listed are estimated.
• Firm quantities are definite bid amounts. The agency issuing the solicitation is guaranteeing
   that they will purchase that number of items.

                                                15
Firm & Term Contracts (Define)
• A term contract is an outline agreement. This type of award allows the agency to issue
   multiple Purchase Orders against the one contract or award. They normally last for one year
   with the option to be renewed for up to 6 annual renewals (or a portion thereof) for a total of
   a 7 year agreement.
• A firm contract is a purchase order. This type of award is a one time request. The purchase
   order is cut, the vendor delivers the goods, and the transaction is over.

PCS contracts require Performance Based Measures
All Professional Consultant Services contracts over the $25,000 require Performance Based
Measures; and all Professional Consultant Services contracts under $25,000 are recommended to
have Performance Based Measures. This is the method on which vendors are paid; these
milestones must be accomplished before the contract is considered complete.

PCS effective dates
• PCS contracts do not go into effect when the solicitation is awarded.
• Professional Consultant Services contracts are not like commodity contracts, they do not go
  into effect once the contract completes the solicitation phase.
• There is a review phase that must be completed before the contract can be enacted.
• These contacts must be reviewed by a committee known as the Legislative Council Review
  Committee (LCRC) and Arkansas Legislative Council (ALC) as well as the Office of State
  Procurement before any work can begin.
• These reviews are required by law and if missed could negate the contract and may cause the
  vendor to forfeit payment for any work done.




                                                16
                                         Chapter 5 – Protest
Protest
The protest procedure is outlined in section 19-11-244 of the procurement law and reads as
follows.

19-11-244. Resolution of protested solicitations and awards.
(a) (1) Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection
with the solicitation or award of a contract may protest to the State Procurement Director or the
head of a procurement agency.
        (2) The protest shall be submitted in writing within fourteen (14) calendar days after the
aggrieved person knows or should have known of the facts giving rise to the grievance.
(b) (1) Prior to the commencement of an action in court or any other action provided by law
concerning the controversy, the director, the head of a procurement agency, or a designee of
either officer may settle and resolve a protest of an aggrieved bidder, offeror, or contractor,
actual or prospective, concerning the solicitation or award of a contract.
        (2) This authority shall be exercised in accordance with laws governing the Arkansas
State Claims Commission and the regulations promulgated by the director.
(c) (1) If the protest is not resolved by mutual agreement, and after reasonable notice to the
protestor involved and reasonable opportunity for the protestor to respond to the protest issues
according to the regulations promulgated by the director, the head of a procurement agency, the
director, or a designee of either officer shall promptly issue a decision in writing.
        (2) The decision shall state the reasons for the action taken.
(d) A copy of the decision under subsection (c) of this section shall be mailed or otherwise
furnished within five (5) days after it is written to the protestor and any other party intervening.
(e) A decision under subsection (c) of this section shall be final and conclusive.
(f) In the event of a timely protest under subsection (a) of this section, the state shall not proceed
further with the solicitation or with the award of the contract until the director or the head of a
procurement agency makes a written determination that the award of the contract without delay
is necessary to protect substantial interests of the state.
(g) When the protest is sustained and the successfully protesting bidder or offeror was denied
the contract award, the protesting bidder or offeror may be entitled to the reasonable costs
incurred in connection with the solicitation, including bid preparation costs, through the
commission.

Cost Recovery; Protest
Procurement law limits the amount the protesting party can recover. Even if the protest is upheld
(successful) the protesting party can only recover:

R2:19-11-244. Authority to resolve protested solicitations and awards
(3) Costs. The costs which are allowable shall be those which the party is able to prove that are
incurred in preparation and submission of the bid or proposal in question, but exclude travel
and production costs that may result from participation in pre-bid conferences; attending on-site
inspections, and demonstrations or presentations made in responding to formal solicitations
issued by the State. No party can recover profit which it anticipates would have been made if
that party had been awarded the contract. Attorney's fees associated with the filing and
prosecution of the protest are not recoverable.

Remedies
Remedies are a different way to settle the unlawful award of a contract that does not necessarily
consist of a monetary gain or repayment. In section 19-11-247 if a bid is found to be in violation

                                                 17
of the law the Director of the Office of State Procurement may (1) cancel the bid, or (2) modify
the bid by use of an addendum to make it compliant.

If the violation is found after the bid has been awarded then the Director of OSP has several
remedies:
        1. if the vendor was truthful and honest and the error was an honest mistake, the director
may:
                 a. ratify the contract if it is in the best interest of the state.
                 b. terminate the contract without predigest
        2. if the vendor was dishonest or unethical in obtaining the award in the first place, the
director may:
                 a. declare the contract null & void (with no payment of any kind going to the
vendor for any work done or any product delivered on the unlawful contract.)
                 b. award the contract and direct the vendor to proceed with performance and to
pay for all damages, if any, that may be appropriate (damages such as the difference in the cost
that the state would have paid if the contract had been awarded to the correct vendor at a lower
cost.)

19-11-247. Remedies for unlawful solicitation or award.
(a) The provisions of this section apply where it is determined upon any review provided by law
that a solicitation or award of a contract is in violation of law.
(b) If prior to award it is determined that a solicitation or proposed award of a contract is in
violation of law, then the solicitation or proposed award shall be:
        (1) Cancelled; or
        (2) Revised to comply with the law.
(c) If after an award it is determined that a solicitation or award of a contract is in violation of
law, then in addition to or in lieu of other remedies provided by law:
        (1) If the person awarded the contract has not acted fraudulently or in bad faith:
                 (A) The contract may be ratified and affirmed if it is determined that doing so is
in the best interests of the state; or
                 (B) The contract may be terminated;
        (2) If the person awarded the contract has acted fraudulently or in bad faith:
                 (A) The contract may be declared null and void; or
                 (B) The person awarded the contract may be directed to proceed with
performance of the contract and pay such damages, if any, as may be appropriate if such action
shall be in the best interests of the state

What can be protested?
Actually anything can be protested; the specifications, the evaluation, the way the solicitation is
worded, or the potential award. It doesn’t have to be the actual award of the contract that is
protested.

Who can protest?
Anyone can protest it doesn’t have to be a participating or aggrieved vendor.

19-11-244. Resolution of protested solicitations and awards
(a) (1) any actual or prospective bidder, offeror, or contractor who is aggrieved in connection
with the solicitation or award of a contract may protest to the State Procurement Director or the
head of a procurement agency.


                                                 18
                                  Chapter 6 – OSP Website

OSP Home Page
The Official OSP Website can be located at:
http://www.arkansas.gov/dfa/procurement/pro_index.html

The website includes a Buyer listing which identifies each buyer’s: Name, Email, Phone #, and
Commodities.

Other information available on the OSP website is:
Vendor Information – registration, bid schedule, & anticipation to award
Current Bids – bid documents
Contracts – All state contracts & updates
Laws & Rules – current version & updates
Marketing & Redistribution – sale dates & online auction site
EO 98-04 Disclosure Forms – word & PDF versions
Training Team Information – Class schedules

1. Vendor Page
The Vendor Page can be found at: http://www.state.ar.us/dfa/procurement/pro_vendor.html

The vendor page includes information such as:
Vendor Registration
Bid Opportunities
98-04 Disclosure Form
Protest Process

2. Professional Consulting Services
The Professional Consultant Services (PCS) Page can be found at:
http://www.state.ar.us/dfa/procurement/pro_consult_pro.html

The PCS page includes information such as:
   Contract Form (OSP-1)
   Amendment Form (OSP-1A)
   Deadline Listing
   Reporting Page Links
   Policy Listings
   Instructions

3. Purchasing Cards
The Purchasing Card (P-Card) page can be found at:
http://www.state.ar.us/dfa/procurement/pro_purchcard.html

 The P-Card page includes information such as:
 • Forms
 • Presentations
 • General Information


Travel Card: http://www.state.ar.us/dfa/procurement/pro_buscard.html
 • State Travel Policy
 • Business Travel Cards and Sponsored Travel Accounts

                                               19
4. Agency Links
The agency page can be found at:
State Contracts: http://www.state.ar.us/dfa/procurement/pro_contracts.html
      • All State Contracts
Training and Assistance: http://www.state.ar.us/dfa/procurement/pro_agency.html#6
      • Procurement Training Classes
Marketing and Redistribution: http://www.state.ar.us/dfa/procurement/mr/pro_mr.html
      • Online Bids


5. Procurement Law
The State Procurement Law can be found at:
• http://www.state.ar.us/dfa/procurement/pro_laws.html


(Current Version of the Procurement Law - September 2007)
(Past Versions of Procurement Law - available online)

6. Solicitation Listings
Bid Listings can be found at:
  • http://www.state.ar.us/dfa/procurement/bids/index.php


Anticipation to Award can be found at:
 • http://www.arkansas.gov/dfa/procurement/pro_intent.php


7. NIGP
The Arkansas Chapter of NIGP can be found at:
• http://www.arkansas.gov/dfa/procurement/pro_nigp.html


This is a great organization for networking and professional development.

8. Buyers Names
Buyer contact information is listed on the OSP website at:
http://www.state.ar.us/dfa/procurement/pro_staff.html updated information is posted on this site
with the buyers name, contact information, commodity, email, and phone number.

9. List of APO’s and PA’s – Contact Information
http://www.state.ar.us/dfa/procurement/documents/purchagents_110408.pdf
http://www.state.ar.us/dfa/procurement/documents/purchofficials_100808.pdf
A list of the State APO’s and PA’s are listed on the OSP website. This information is updated
and lists the agency, name, email, phone number, and address of each individual




                                               20
                                     Chapter 7 – Minority

Definition of Minority
15-4-313; 5 Definitions
(5) “Minority” means a lawful permanent resident of this state who is:
(A) An African American;
(B) An Hispanic American;
(C) An American Indian; or
(D) An Asian a Pacific Islander;


Definition of Minority Business Enterprise
Arkansas State Procurement law defines the Minority Business Enterprise as:

15-4-301; 2 Definitions - (2) “Minority business enterprise” means a business enterprise that is
owned or controlled solely by one (1) or more socially or economically disadvantaged persons.
The disadvantage may arise from cultural, racial, chronic economic circumstances or
background, or other similar cause.

15-4-313; 6 Definitions - (6) “Minority business enterprise” means a business that is at least
fifty-one percent (51%) owned by one (1) or more minority persons as defined in this section.

The State’s Goal
It is the State’s goal that 10% of each agency’s annual procurements utilize minority vendors.
This is within the agency’s fiscal year purchasing cycle.

Minority Vendor Listing
The lists of Minority vendors can be found at the Arkansas Economic Development
Commission.
        One Capitol Mall
        Little Rock, AR 72201
        P: 501-682-1121
        F: 501-682-7394
        www.aransasedc.com

http://www.arkansasedc.com/business-development/small-and-minority-businesses/small-and-
minority-business-directory.aspx




                                               21
                               Appendix A – Acronyms List

ADR      Alternative Dispute Resolution         OA       Outline Agreement
AI       Appearance of Impropriety              OSP      Office of State Procurement
ATC      Average Total Costs                    OEM      Original Equipment Manufacturer
APO      Agency Procurement Official            PA       Purchasing Agent
BAFO     Best and Final Offer                   PO       Purchase Order
CB       Competitive Bid                        PR       Purchase Requisition
C&F      Cost and Freight                       QC       Quote, Constitutional (Printing)
CAD      Computer Aided Design                  QPL      Qualified Products List
CIA      Cash in Advance                        RFI      Request for Information
COD      Cash on Delivery                       RFP      Request for Proposal
COLA     Cost of Living Adjustment              RFQ      Request for Quotation
CPPB     Certified Professional Public Buyer    RFQu     Request for Qualifications
CPPO     Certified Public Purchasing Officer    SME      Subject Matter Expert
         Department of Finance and
DFA    Administration                           SO       Small Order
DMS      Doesn't Meet Specifications            SPEC     Specifications
         Equal Employment Opportunity
EEOP   Policy                                   SOR      Statement of Requirement
EFT      Electronic Funds Transfer              SOW      Statement of Work
EIN      Employer Identification Number         SS       Sole Source
EL       Exempt by Law                          SLA      Service Level Agreement
EM       Emergency Order                        SME      Subject Matter Expert
FAR      Federal Acquisition Regulation         ST       State Term
FCC      Federal Communication Commission       TCO      Total Cost of Ownership
FOB      Free on Board                          VPR      Vendor Performance Report
IFB      Invitation for Bid                     T&C      Terms and Conditions
IPR      Internal Purchase Requisition          TQM      Total Quality Management
IT       Information Technology                 TL       Truck Load
M&R      Marketing and Redistribution           LTL      Less than Truck Load
         Minority-Owned Business                         National Institute of Governmental
MBE    Enterprises                              NIGP   Purchasing
MOU      Memorandum of Understanding




                                           22
                                     Appendix B - Commodity Groups
Material Group   Description                           Material Group   Description
   00500         Abrasive Supply                          52001         Leather & Equip Supp
   00505         Equipment, Abrasive                      52500         Library, Archival
   00575         Recycled, Abrasive                       52501         Libr, Archival Supply
   01000         Insulating Materials                     53000         Luggage, Briefcase
   01005         Acoustical Tiles                         54000         Lumber
   01083         Recycled, Insulation                     54500         Mach, Hdware-indust
   01500         Address Machine & Supplies               54501         Mach, Hdware-indust sup
   01506         Supply, Metal/Plastic                    55000         Mark, Traffic Cntrl
   01900         Farm Crops/Grains                        55500         Mark, stencil device
   02000         Farm Equipment                           55600         Mass transport-bus
   02078         Recycle, Ag Equipment                    55700         Mass trans-buss acces
   02200         Farm Equipment Parts                     56000         Mat'l hand eq
   02249         J Deere Parts                            56001         Material Hand Eq Sup
   02251         Ford Parts-Farm                          56075         Truck, Lift, Power
   02253         Intl Harvester Parts                     56500         Mattress
   02258         Other Farm Parts                         57000         Metal, Bars, Plates, ET
   02500         Air Compressor                           57034         License Plate
   03100         HVAC                                     57500         Microfiche. Film Equipment
   03101         HVAC, Parts/Filters                      57501         Microfic/Film Eq Sup
   03500         Aircraft, Airport                        57838         Forestry Equip
   03540         Equip/Supl Airplane                      57839         Forestry Equip Supply
   03700         Amuse/Entertain Sup                      58000         Music Instrument
   04000         Animal & Acc                             59500         Nursery Supply
   04010         Cattle                                   60000         Office Machine
   04030         Dog                                      60001         Office Machine Supply
   04040         Fish                                     60038         Copy, Analog
   04060         Hog                                      60046         Copy, Digital
   04070         Horse                                    60061         Fax
   04093         Turkey                                   60500         Office Machine Accessories
   04500         Appliances                               61500         Office Supply
   04501         Appliances (non-capitol asset)           62500         Optical Equip
   05000         Art Supplies                             62501         Optical Eq Supply
   05500         Automotive Accessory                     62526         Eye Glass
   05513         Car Seat, Infant                         63000         Pain Product
   05590         Wheelchair, Lift                         63500         Paint Equip
   06000         Automotive Maint                         63501         Paint Eq Supply
   06075         Retread Rubber                           64000         Paper, Plastic
   06500         Automotive Body                          64015         Bag, Paper
   07000         Automotive Vehicle                       64500         Paper, Office/Print
   07003         Ambulance, Rescue                        64518         Board
   07006         Auto/Stat W/Passenger                    64521         Bond
   07012         Motorcycle                               64530         Carbonless
   07022         Off-Road                                 64533         Copy, Special
   07024         Prision Trans Bus/Van                    64535         Cover Stock
   07030         School Bus Chassis                       64539         Duplicate, Mimeo
   07033         School Bus, Conven                       64544         Fax
   07036         School Bus, Small                        64561         Newsprint
   07042         Short Wheel 2/4-WD                       64564         Offset
   07045         Truck Tractor                            65000         Park, Recreation
   07047         Truck, Cab, Chassis                      65200         Personal Hygiene
   07048         Truck, 1T/Less                           65500         Photographic Eq
                                                  23
Material Group   Description                  Material Group   Description
   07051         Truck 1T+                       65501         Photographic Eq Supp
   07053         Truck, Special Body             65800         Pipe, Tube, Fitting
   07054         Truck, Diesel                   66000         Tobacco, ETC.
   07057         Truck, Fire Protect             67000         Plumbing Eq
   07066         Trailer, Flat Bed               67001         Plumbing Eq Supply
   07072         Trailer, House                  67500         Poison
   07075         Trailer, Livestock              67580         TCA
   07082         Trailer, Truck                  68000         Police Eq
   07092         Van, Cargo                      68001         Police Equip Supply
   07093         Van, Personnel                  68004         Ammunition
   07500         Automotive Shop                 68008         Body Arm, Riot Shld
   07501         Air Power Tool                  68024         Breath Alcohol Test
   07503         Align, Balance Wheel            68044         Detector-Gun/Metal
   07506         Charge, Test                    68052         Gun, Pistol, Rifle
   07508         Brake Bench Stand               68077         Radar, Traffic
   07519         Clean Equipment                 68500         Poultry Equipment
   07525         Dynamometer                     69000         Power Generator
   07533         Hand tool, Auto                 69001         Power Generator Supply
   07543         Lathe                           69100         Power Transmis
   07544         Lift, Hoist                     69101         Power Transmis Sup
   07550         Diagnos, Equip, Auto            70000         Print Plant
   07581         Tire Change Equip               70001         Equipment
   08000         Badge, Emblem, Tag              70003         Accessory
   08500         Bag                             70005         Consumable
   08573         Recycle, Bags                   71000         Prosthetic Dev
   09000         Bakery Equipment                71001         Prosthetic Dev Suppl
   09500         Barber/Beauty                   71500         Publications & Books
   09521         Supply, Barber/Beauty           72000         Pump Eq
   10000         Container                       72001         Pump Equip Supply
   10005         Box                             72500         Communicat Eq
   10006         Plastic                         72501         Communication Eq Sup
   10030         Hazardous Material              72509         AM/FM Transmitter
   10500         Bearing                         72523         Fiber Optic Cable
   11018         Conveyor, Elevator              72545         Pager, Radio
   11074         V-Belt                          72590         Wildlife Track
   11500         Biochemical, Research           73000         Comm. Test Eq
   11518         Media, Dehy                     73001         Comm TestEq Supply
   11519         Media, Prepared                 73500         Rag, Towel, Cloth
   12000         Marine, Equip                   74000         Refrigerator Eq
   12001         Marine, Supply                  74001         Refrigerator Eq Sup
   12590         Wire                            74500         Road Matrl, Asphalt
   13500         Brick, Stone                    75000         Road Mtr, No Asphalt
   13504         Block, Kiln, Oven               75021         Cement
   13508         Brick                           75030         Concrete, Precast
   13558         Tile                            75500         Road Eq, ASPH
   14000         Brush Manuf                     75501         Road Eq, ASPH Sup
   14003         Brush Manuf Supply              76000         Road Equip, Earth
   15000         Builder Supply                  76001         Road Eq, Earth Supp
   15012         Cement Mix, Sacked              76500         Road Equip, No Asphalt
   15025         Doors, Metal                    76501         Road Eq, No Asphalt Sup
   15027         Doors, Wood                     77000         Roofing
   15042         Lathe, Metal                    77500         Salt, Road Maint
                                         24
Material Group   Description                    Material Group   Description
   15044         Lathe, Wood                       78000         Scale
   15089         Door, Warehouse                   78001         Scale, Supply
   15500         Building, FAB/PRE-FAB             78078         Postal, Electronic
   15508         Bridge, Prefabricate              78500         School Equip
   15542         Greenhouse                        78501         School Equip, Supply
   15578         Shelter, Insulate                 79000         Seed, Sod, Soil
   15580         Shelter, Portable                 79500         Sew, Textile Machine
   16000         Meat Proc Eq                      80000         Shoes, Boots
   16001         Meat Proc Eq Parts                80100         Sign Equip, Supply
   16500         Cafeteria, Kit                    80300         Sound Sys, Accessory
   16501         Caf/Kit eq Part/Supp              80320         Group Auditory Systems
   17500         Chem, Lab Eq                      80330         Intercom Systems
   17501         Chem Lab Supply                   80340         Microphones
   17513         Chemicals, Lab                    80500         Sport Equipment
   17542         Glassware                         81000         Spray Equipment
   17568         Plastic ware, Lab                 81500         Stream Fit, Supply
   18000         Chem,Raw Manuf                    82000         Stream Equipment
   19000         Chem/Solvent Comm                 82008         Boiler & Accessory
   19200         Cleaning Comp                     82500         Stockman Equipment
   19300         Clinical Lab Reagent              83000         Tank
   19500         Clock, Watch                      83058         Steel, Portable
   20000         Clothing                          83061         Steel, Pressure
   20010         Athletic                          83200         Tape
   20085         Uniform                           84000         Television Equipment
   20100         Clothing Accessory                84500         Test Equipment
   20137         Emblem, Patch                     85000         Textiles, Linens
   20400         PC Hardware                       85001         Bulk Textiles
   20453         Micro Desk/Tower                  85002         Linens
   20454         Micro Laptop                      85500         Theatre Equipment
   20464         Networks                          86000         Ticket, Coupon Book
   20471         Plotters, Graphic                 86040         Sales
   20482         Printers, Computer                86073         Ticket, Traffic
   20482         Printers, Computer                86075         Ticket, Roll
   20500         PC Peripherals                    86300         Tire, Tube
   20600         Mainframe Hardware                86500         Twine
   20678         Mainframe Peripheral              87000         Blind, Awning, Shade
   20700         Computer Supplies                 87500         Veterinary Eq, Supl
   20800         Software, PC                      88000         Visual Edu Eq, Supl
   20900         Software, Mainframe               88500         Water Treat Chemical
   21000         Culvert, Metal/Concrete           89000         Water Supply Equip
   21011         Blocks, Concrete                  89500         Welding Equipment
   21075         Septic Tank                       89800         X-Ray/Rad Equipment
   21200         Communication Control             90100         Legal/Invest/Secure
   21300         Voice Entry Device                90101         Attorney
   21800         Telecommunicate Eq                90102         Private Investigator
   21803         TDD                               90103         Hearing Officer
   21811         Telephone System                  90104         Security
   21813         Telephone Instrument              90105         Prosecuting Attorney
   21815         Cell Phone/Service                90106         County Judge
   21817         Broadband Service                 90107         Witness
   22000         Meas/Contrl Eq                    90108         Collection
   22001         Mease/Control Eq Sup              90109         Court Reporter
                                           25
Material Group   Description                      Material Group   Description
   22500         Cooler/Fountain H2O                 90197         Miscellaneous
   23200         Craft, General                      90198         Research
   23300         Craft, Special                      90199         Between State Agency
   24000         Cutlery, Dish, Tray                 90200         Medical/Corrl/Human
   24500         Dairy Equipment                     90201         Dentist
   24501         Dairy Equip Supply                  90202         Dental Hygienist
   25500         Decal/Stamp                         90203         Doctor
   25520         Cigarette Stamp Num                 90204         Nurse
   25522         Park                                90205         Pharmacist
   25540         Inventory, Small                    90206         Medical Consultant
   25545         License Plate                       90207         Psychologist/Psychtr
   26000         Dental Equip                        90208         Speech Therapist
   26001         Dental Eq Supply                    90209         Lab Service (Medical)
   26500         Drape & Upholstery                  90210         Lab Environmental
   26900         Drug, Pharmaceutical                90211         Barber
   26980         Pharm, Parenteral                   90212         Hospital
   27101         Nutri, Food Supplmt                 90213         Case Worker/Interprt
   28000         Non-Electrical Cable                90214         Specialty House
   28500         Electric Equipment                  90215         Food Service/Dieticn
   28506         Ballast                             90216         Ambulance/Mortuary
   28544         Isolation System                    90217         Occupational Therapt
   28545         Lamp, Projector                     90218         Physical Therapist
   28550         Lamp, Fluorescent                   90219         Medical
   28551         Lamp, Scientific                    90220         AHEC/Medical Training
   28552         Lamp, Portable                      90221         Counselor
   28554         Light Fixture                       90222         Medical Transport
   28558         Light Unit                          90223         Exam/Testing
   28700         Electric Components                 90297         Miscellaneous
   28712         Batteries for Electronics           90298         Research
   28718         Chem for Electronics                90299         Between State Agency
   29000         Energy Collect                      90300         Educational/Train
   29001         EnergColl, Non-Asset                90301         School
   29010         Solar                               90302         Educational Evaluation
   29095         Wind                                90303         Occupational Guidance
   29500         Elevator, Escalator                 90304         Seminar
   30500         Eng/Survey Eq                       90305         Special Class/Instr
   31000         Envelope                            90306         Lecturer
   31006         Clasp, String                       90307         In-Service Training
   31024         Plain, Special                      90308         Day Care
   31025         Print, Special                      90309         Head Start
   31030         Plain, Stock                        90323         Exam/Testing
   31031         Print, Stock                        90397         Miscellaneous
   31060         Plain, Recycle                      90398         Research
   31061         Print, Recycle                      90399         Between State Agency
   31067         Ship, Mail                          90400         Public Relations
   31078         X-Ray Film File                     90401         Advertise/Market
   31500         Adhesive, Concrete                  90402         Game Official
   31800         Fare Collect Eq                     90403         Artist/Photography
   31801         Fare Collect Eq Supplies            90404         Entertainment
   32000         Fasten, Pack Eq                     90405         Video Production
   32001         Fasten, Pack Eq Supply              90497         Miscellaneous
   32500         Feed/Bed/VIT/Animal                 90498         Research
                                             26
Material Group   Description                       Material Group   Description
   33000         Fencing                              90499         Between State Agency
   33013         Chain Link                           90500         Data Processing
   33020         Electric                             90501         Service
   33500         Fertilizer, Soil CND                 90502         Consultant
   34000         Fire Prot Eq                         90503         Micrographics
   34001         Fire Protect Eq Supply               90545         Software Maint/Support
   34500         First Ad/Safe Eq                     90598         Research
   34501         First Ad/Safe Eq Sup                 90599         Between State Agency
   35000         Flag, Pole, Banner                   90600         Design/Construction
   36000         Floor Covering                       90601         Architect
   36500         Flr Maint Mach                       90602         Engineer
   36501         Floor Maint Mach Sup                 90603         Surveyor
   37000         Food Proc Eq                         90604         Construction
   37001         Food Process Eq Supp                 90605         Appraiser
   37400         USDA Commodities                     90606         Asbestos Related
   37410         School Lunch Commod                  90697         Miscellaneous
   37500         Food, Bakery Fresh                   90698         Research
   37515         Bread, Roll                          90699         Between State Agency
   38045         Ice Cream                            90700         Maintenance Service
   38075         Milk                                 90701         Janitorial
   38500         Food, Frozen                         90702         Sanitation
   38542         Entrée                               90704         Maintenance
   39000         Food, Perishable                     90797         Miscellaneous
   39049         Meat, Fresh/Frozen                   90799         Between State Agency
   39300         Food, Staple                         90800         Administrative Serv
   39335         Cereal, Ready-to-Eat                 90802         Management Consult
   39377         Soft Drink                           90803         Accountant
   39500         Form, Cont, Custom                   90804         Planning Consultant
   39525         Label, Custom                        90805         Feasibility Study
   39527         Label, Stock                         90806         Insurance Consult
   39550         Computer Stock                       90807         Clerical Aid
   39570         Snap-Out Form                        90808         Financial/Investment
   40000         Casting Equip                        90823         Exam/Testing
   40001         Casting Equip Supply                 90897         Miscellaneous
   40500         Fuel, Oil, Grease                    90898         Research
   41000         Furniture, Hospital                  90899         Between State Agency
   41001         Furn, Hosp, Low Value                90900         Other Serv/Fees/Exp
   41500         Furniture, Lab                       90901         Honorarium
   41501         Furn, Lab, Low Value                 90903         Flying Service
   42000         Furn Café/Libr/Schl                  90904         Messenger Service
   42001         Furn, CafLibSch, Low Value           90910         Fees/Dues, Misc
   42040         Household                            90920         Taxes, Misc
   42056         Library                              90997         Miscellaneous
   42066         Furn, Mail Room                      90998         Research
   42068         Mattress, Bedspring                  90999         Between State Agency
   42088         Schoolroom                           91000         Build Construct Serv
   42500         Furniture, Office                    91001         Athletic
   42501         Furn, Office, Low Value              91002         Industrial
   42503         Bookcase/Shelf                       91003         No Residential
   42506         Chair                                91004         Residential
   42508         Chair Kit                            91005         Home Construction
   42520         Desk, Table                          91006         Special
                                              27
Material Group   Description                    Material Group   Description
   42540         File Cabinet                      91200         Construct Serv, Gen
   42554         Modular Panel System              91216         Bore, Drill, Test
   42568         Rotary File System                91223         General
   42580         Shelf, Metal                      91240         Demolition
   42592         Visual File System                91244         Excavation
   42594         Work Station                      91300         Construct SV, Heavy
   43000         Gas, Container                    91360         Water System
   43500         Sani/Healthcare Prod              91400         Construct SV, Trade
   44000         Glass, Glaze                      91427         Carpentry
   44005         Bullet Proof                      91430         Concrete
   44500         Hand Tool                         91438         Electrical
   44506         Bits, Dies                        91447         Glass, Glaze
   44519         Concrete Tool                     91450         HVAC
   44526         Drill, No Power                   91453         Insulate
   44527         Drill, Portable                   91455         Masonry
   44530         Fastening Tool                    91458         Metal Works
   44538         Hammer, Mallet, Bar               91461         Paint
   44541         Hazard Material Eqpt              91464         Plaster
   44564         Screwdriver                       91465         Plastic
   44578         Tool Lathe                        91468         Plumbing
   44579         Tool Box, Chest                   91473         Roofing
   44580         Tool, Machinist                   91479         Structural Steel
   44582         Tool Set                          91480         Stucco
   45000         Hardware                          91483         Tile, Marble Work
   45006         Battery, Dry Cell                 91485         Welding
   45007         Battery Charger                   91800         Consulting Services
   46000         Hose                              92100         Reimb Exp Legal
   46020         Fuel, Diesel, Gas                 92101         Reimb Exp Lien Title Srch
   46036         Hose                              92200         Reimb Exp Medical
   46045         Hydraulic                         92201         Reimb Exp Lab Diab
   46075         Sand Blasting                     92202         Reimb Exp Correct Rehab
   46500         Hospital/Surgical                 92300         Reimb Exp Ed Honorarium
   46501         Hosp/Surg Supply                  92400         Reimb Exp Comp SetUp Artwork
   47000         Hosp Eq, Inval                    92500         Reimb Exp DP Services
   47001         Hosp Eq. Invalid Supply           92600         Reimb Exp Eng & Arch
   47500         Hospital Supply                   92800         Reimb Exp -Prof & Admin
   47526         Condom                            92804         Auto Repair
   47540         Glove                             95300         Insurance
   47546         Incontinent Brief                 95400         Laundry Services
   48500         Janitor Supply                    95924         Boat Motor Repair
   48593         Washing Compound                  96178         Travel Services
   49000         Lab Equip                         96256         Moving Services, Gen
   49001         Lab Equip Supply                  96257         Mobile Home Moving
   49300         Lab Eq Bio                        96600         Printing Services
   49301         Lab Eq Bio Supply                 96618         Copying Services
                                                                 Printing Serv; Engraving,
    50000        Lndry&Dry Cl Eq Comm               96628        Embossing
    50500        Lndry&Dry Cl Eq Supply             96684        Silk Screen Printing Serv
    51500        Lawn Equipment                     97100        Real Property-Rental
                                                    98100        Rental-Equipment



                                           28
                          Procurement Word Usages and Definitions

   Word or Phrase                                       Definition

          A
      Act of God            A danger that could not be avoided by human power; any natural
                            cause of damage which is irresistible (e.g. hurricane, flood,
                            lighting), and which is in no way connected with negligence.

 Agency Procurement         Person authorized by a state agency to enter into and administer
      Official              contracts and make written determinations and findings with
                            respect thereto in accordance with procedures prescribed by the
                            Arkansas Code and the Rules promulgated under it. The term
                            also includes an authorized representative acting within the
                            limits of authority. (APL)

    APL or (APL)            Arkansas Purchasing Law (APL). When used in this definition
                            section means the definition is located in the Arkansas
                            Purchasing Law; Ark. Code Ann. § 19-11-201 et seq. or in the
                            Arkansas Rules and Rule, or Policy and Procedures.

     Appropriation          Legislative sanction to use public funds for a specific purpose.
                            Money set apart for a specific use.

Arbitrary and Capricious Action by whim or caprice; unreasoning action; ungoverned
         Action          action; grounds for a court to overrule or remand an
                         administrative decision or action.

         As Is              An expression signifying that goods offered for sale without
                            warranty or guarantee, and that the purchaser takes the good at
                            own risk. The purchaser has no recourse on the vendor for the
                            quality or condition of the goods.

      Assignment            Transference of some property right or title to another party.

 Authorized Price List      A price list of the products and/or services covered in a contract
                            containing minimum essential information needed by users
                            placing orders.

          B
      Back Order            That portion of an order which a vendor cannot deliver at the
                            scheduled time and which he has re-entered for shipment at a
                            later date.

  Best Interests of the     A term frequently used in granting a purchasing official the
  State (City, County)      authority to use his discretion to take whatever action he feels is
                            most advantageous to the government. The term is used when it
                            is impossible to anticipate adequately the circumstances that
                            may arise so that more specific directions could be delineated by
                            the law or rule.

                                              29
                 Procurement Word Usages and Definitions

Word or Phrase                                 Definition

      Bid          An offer, as a price, whether for payment or acceptance. A
                   quotation specifically given to a prospective purchaser upon his
                   request, usually in competition with other offerors. Also, an
                   offer by a buyer to a seller, as at an auction.

Bid Award File     A filed divided into commodity and item sections listing those
                   solicited for individual bids, what each response was, and other
                   information. The bid award file is used to compare past bids for
                   award patterns that might reveal collusive agreements or to make
                   other comparisons of data.

   Bid Bond        An insurance agreement in which a third party agrees to be liable
                   to pay a certain amount of money in the event that a specific
                   bidder, if his bid is accepted, fails to sign the contract as bid.
                   See: Bid Deposit; Bid Security.

  Bid Deposit      A sum of money or check, deposited with and at the request of
                   the government, in order to guarantee that the bidder (depositor)
                   will (if selected) sign the contract as bid. If the bidder does not
                   sign the contract, he forfeits the amount of the deposit. See: Bid
                   Bond; Bid Security. See also: Forfeiture of Deposit or Bond.

 Bid Opening       The process through which the contents of bids are revealed for
                   the first time to the government, to the other bidders, and usually
                   to the public. See: Public bid opening.

    Bidder         Any person who makes a bid.

  Bidders List     A list maintained by the purchasing authority setting out the
                   names and addresses of suppliers of various goods and services
                   from which bids, proposals, and quotations can be solicited.
                   See: Pre-qualification of Bidders; Qualified Bidder.

 Blanket Order     A purchase arrangement in which the purchaser contracts with a
                   vendor to provide the purchaser's requirements for an item(s) or
                   a service, on an as-required and often over-the-counter basis.
                   Such arrangements set a limit on the period of time they are to
                   be valid and the maximum amount of money to be spent at one
                   time or within a period of time.

  Boiler Plate     Colloquial designation for standard terms and conditions,
                   usually preprinted, incorporated in an Invitation for Bids,
                   Request for Proposals, or a contract or purchase order. See
                   "General Provision.



                                     30
                       Procurement Word Usages and Definitions

  Word or Phrase                                     Definition

       Bond              An obligation, in writing, binding one or more parties as surety
                         for another.

    Brand Name           A product name that serves to identify that product as having
                         been made by a particular manufacturer. A trade name.

Brand Name or Equal      A specification that cites brand names, model numbers, or other
    Specification        identifications as representing quality and performance called
                         for, and inviting bids on comparable items or products of any
                         manufacturer.

    Brand Name           A specification that cites a brand name, model number, or some
    Specification        other designation that identifies a specific product as an example
                         of the quality level desired. See: Equal, Or Equal.

 Breach of Contract      A failure without legal excuse to perform any promise, which
                         forms a whole or part, of a contract. See: Forfeiture of Deposit
                         or Bond.

 Breach of Warranty      Infraction of an express or implied agreement as to the title,
                         quality, content, or condition of a thing sold.

  Bulk Purchasing        Purchasing in large quantities in order to reduce the price per
                         unit; volume purchasing.

      Business           Any corporation, partnership, individual, sole proprietorship,
                         joint-stock company, joint venture, or any other legal entity.
                         (APL)

        C
  Cannibalization        Process whereby a nonexpendable surplus or excess commodity
                         is dismantled for parts to be used as replacements or as
                         components of other machines or devices. (APL)

Capital Improvements     All lands, buildings, structures, utilities, on-site and off-site
                         improvements, and other appurtenant improvements, existing or
                         future, and all construction, repairs, alterations, and renovations
                         thereof which are undertaken, owned, operated, or otherwise
                         managed by a state agency. Capital improvements shall not
                         include construction and reconstruction of roads and bridges in
                         the state highway system by the State Highway Commission, nor
                         shall the term capital improvements include any building,
                         facility, plant, structure, or other improvements constructed by,
                         or in behalf of, the Arkansas State Highway and Transportation
                         Department or the State Highway Commission. (APL)


                                           31
                      Procurement Word Usages and Definitions

  Word or Phrase                                     Definition

       Catalog           A listing of item identifications arranged systematically.

   Catalogue Price       The price included in a catalogue, price list, price schedule or
    Established          other form that:(a) is regularly maintained by a manufacturer or
                         contractor; (b) is either published or otherwise available for
                         inspection by customers; and (c) states prices at which sales are
                         currently or were last made to a significant number of any
                         category of buyers, or to the general buying public, for the
                         supplies or services involved.

   Caveat Emptor         "Let the buyer beware." A maxim stating the buyer should be
                         careful in making a purchase because the burden of defective
                         goods rests with him. In contravention, the seller can be held
                         responsible for certain defects by means of suitable
                         specifications, warranties, and contractual terms and conditions.

   Caveat Venditor       "Let the seller beware." A maxim relating to situations where the
                         vendor bears the responsibility for defects in the goods he sells.

 Central Purchasing      The administrative unit of a centralized purchasing system with
     Authority           the authority, responsibility, and control of purchasing activities.

Centralized Purchasing   A system of purchasing in which the authority, responsibility,
                         and control of purchasing activities is concentrated in one
                         administrative unit.

    Change Order         A written order directing the contractor to make changes which
                         the Changes Clause of the contract authorizes the purchaser to
                         order without consent of the contractor.

   Code of Ethics        A written set of guidelines within which judgments and
                         considerations of professional ethics and behavior should be
                         made. See: "Purchasing Ethics."

      Collusion          A secret agreement or cooperation between two or more persons
                         to accomplish a fraudulent, deceitful, or unlawful purpose.

  Collusive Bidding      The response to bid invitations by two or more vendors who
                         have secretly agreed to circumvent laws and rules regarding
                         independent and competitive bidding.

    Commodities          All property, including, but not limited to, equipment, printing,
                         stationery, supplies, and insurance but excluding leases on real
                         property, excluding real property or a permanent interest in real
                         property, excluding exempt commodities and services, and
                         excluding capital improvements. (APL)

                                           32
                        Procurement Word Usages and Definitions

   Word or Phrase                                     Definition

     Commodities          All tangible commodities other than nonexpendable
      Expendable          commodities. (APL)

    Commodities           Any commodity, other than expendable commodities, having a
  Expendable Excess       remaining useful life but which the using agency in possession
                          of the commodity has determined is no longer required by such
                          agency. (APL)

     Commodities          All tangible commodities having an original acquisition cost of
    Nonexpendable         over three hundred dollars ($300) per unit and a useful life of
                          more than one (1) year. (APL)

 Commodities Surplus      Any commodities, other than expendable commodities, no
                          longer having any use to the state. This definition includes
                          obsolete commodities, scrap materials, and non-expendable
                          commodities that have completed their useful life cycle. (APL)

 Commodities, Surplus     All property owned by the state excluding leases on real
                          property. (APL) with emphases

      Commodity           An article of trade, a moveable article of value, something that is
                          bought or sold; any moveable or tangible thing that is produced
                          or used as the subject of barter or sale.

     Competition          The process by which two or more vendors vie to secure the
                          business of a purchaser by offering the most favorable terms as
                          to price, quality, and service.

 Competitive Bidding      The offer of prices by individuals or firms competing for a
                          contract, privilege, or right to supply specified services or
                          merchandise.

Competitive Negotiation A method for contracting for goods and services, whereby
                        proposals are solicited from qualified suppliers, following
                        submission of which changes in proposals and prices be allowed,
                        and the offer deemed by the awarding authority to be most
                        advantageous in terms of criteria as designated in the Request
                        for Proposals is accepted; a negotiated purchase.

Competitive Quotations    The customary, and usually prescribed, method for making
                          purchases involving dollar amounts less than that for which
                          competitive sealed bidding is required. This competition, by
                          law, is often required with the transactions designated as
                          "informal bidding," or "small purchases."



                                            33
                         Procurement Word Usages and Definitions

   Word or Phrase                                      Definition

  Competitive Sealed       A method of procurement which requires: (1) Issuance of an
      Bidding              invitation for bids with a purchase description and all contractual
                           terms and conditions applicable to the procurement; (2) Public,
                           contemporaneous opening of bids at a predesignated time and
                           place; (3) Unconditional acceptance of a bid without alteration
                           or correction, except as authorized in §§ 19-11-204 and
                           19-11-228 - 19-11-240; (4) Award to the responsive and
                           responsible bidder who has submitted the lowest bid that meets
                           the requirements and criteria set forth in the invitation for bids;
                           and (5) Public notice. Invitation for bids shall be mailed, hand
                           delivered, or conveyed in written or electronic form, to all
                           parties on the applicable bidders mailing list in adequate time to
                           allow response. (APL)

Confidential Information       (1) Any information which is available to an employee only
                                   because of the employee's status as a public employee
                                   and is not a matter of public knowledge or available to
                                   the public on request.
                               (2) Information, such as trade secrets and test data, which
                                   may be kept confidential in the purchasing process.

   Confirming Order        A purchase order issued to a vendor, listing the goods or services
                           and terms of an order placed verbally, or otherwise, in advance
                           of the issuance of the usual purchase document.

  Conflict of Interest     A situation wherein an individual as part of his duties must make
                           a decision or take action that will affect his personal interests.
                           See "Code of Ethics," "Purchasing Ethics."

     Consideration         Acts, promises, or things of value exchanged by two parties that
                           validates a contract between them.

Consultants and Experts    Those persons who are exceptionally qualified, by education or
                           by experience, in a particular field to perform some specialized
                           service. See "Professional Services."

       Contract            All types of state agreements, regardless of what they may be
                           called, for the purchase of commodities and services and for the
                           disposal of surplus commodities and services not otherwise
                           exempt. It includes awards and notices of award, contracts of a
                           fixed-price, cost, cost-plus-a-fixed-fee, or incentive type,
                           contracts providing for the issuance of job or task orders, leases,
                           letter contracts, and purchase orders. It also includes
                           supplemental agreements with respect to any of these items.
                           (APL)


                                             34
                         Procurement Word Usages and Definitions

   Word or Phrase                                      Definition

Contract Administration    The management of all facets of contracts to assure that the
                           contractor's total performance is in accordance with his
                           contractual commitments and that the obligations of the
                           purchaser are fulfilled. In government, this management is
                           conducted within the framework of delegated responsibility and
                           authority and includes the support of using agencies.

Contract Modification(s) Any written alteration in specifications, delivery point, rate of
                         delivery, period of performance, price, quantity, or other
                         provisions of any contract accomplished by mutual action of the
                         parties to the contract. (APL) The action pursuant to
                         contractual conditions and leaving the general purpose and effect
                         of the contact in tact. See “Chang Order”.

    Contract Record        A record providing particulars regarding the orders or releases
                           placed for delivery of goods against a contract so the volume of
                           contract purchases can be determined.
       Contractor          One who contracts to perform work or furnish materials in
                           accordance with a contract.

  Contractual Services     Services furnished under a contract in which the nature and basis
                           for charges and other pertinent contractual terms and conditions
                           are defined. See "Services," "Client Services," "Professional
                           Services," "Proprietary Services."

     Convenience           A contract clause which permits the government to terminate, at
  Termination Clause       its own discretion, the performance of work in whole or in part,
                           and to make settlement of the vendor's claims in accordance with
                           appropriate Rules.

      Cooperative          Procurement conducted by, or on behalf of, more than one (1)
      Procurement          public procurement unit or by a public procurement unit with an
                           external procurement activity. (APL)

Cooperative Purchasing     The combining requirements of two or more political entities in
                           order to obtain the benefits of volume purchases and/or
                           reduction in administrative expenses.

 Corrupt Combination,    Terms referring to an agreement between two or more
Collusion, or Conspiracy businesses to stifle, control, or otherwise inhibit free competition
 in Restraint of Trade   in violation of state and/or federal antitrust laws or Rules. See
                         "Collusive Bidding," "Price Fixing."

 Cost-Reimbursement        A contract under which a contractor is reimbursed for costs
       Contract            which are allowable and allocable in accordance with the
                           contract terms and the provisions of the purchasing law, plus a
                           fee, if any.
                                            35
                        Procurement Word Usages and Definitions

   Word or Phrase                                     Definition

        D
      Damages             Compensation, usually in money, for injury to goods, persons, or
                          property.

        Data              Recorded information, regardless of form or characteristic.
                          (APL)

     Debarment            Disqualification of a person to receive invitations for bids or
                          requests for proposals or the award of a contract by the state for
                          a specified period of time commensurate with the seriousness of
                          the offense or the failure or the inadequacy of performance.
                          (APL)

       Default            Failure by a party to a contract to comply with contractual
                          requirements; vendor failure.

  Delivery Schedule       The required or agreed time, or rate, of delivery of goods or
                          services.

   Delivery Terms         Conditions in a contract relating to freight charges, place of
                          delivery, time of delivery, or method of transportation.

 Design Specification     A type or manner of writing a purchase description characterized
                          by detail as to how the product is to be manufactured or work is
                          to be performed; generic specification. Appropriate for a unique
                          product or custom work.

      Designee            A duly authorized representative of a person holding a superior
                          position. (APL)

Disadvantaged Business    A small business owned or controlled by a majority of persons,
                          not limited to members of minority groups, who have lacked
                          opportunity to develop and maintain a competitive position in
                          the economy because of social disadvantages.

      Discount            An allowance or deduction granted by the seller to the buyer,
                          usually when certain stipulated conditions are met by the buyer,
                          which reduces the cost of the goods purchased. However,
                          discounts may be granted by the seller without reference to
                          stipulated conditions. An example of such use of discount is the
                          application of discount to a nominal or "list" price to establish
                          the "net" or actual price. See: Cash discount; Quantity discount;
                          Standard package discount; Trade discount.




                                            36
                       Procurement Word Usages and Definitions

   Word or Phrase                                    Definition

          E
   Economic Order        The stock level re-order point based on costs of acquisition,
   Quantity (EOQ)        storage, handling, and inventory investment to determine the
                         most cost effective time and quantity to reorder. See "Stock
                         Control," "Reordering Level."

      Electronic         Electrical, digital, magnetic, optical, or any other similar
                         technology. (APL)

Emergency Procurement The acquisition of commodities or services which, if not
                      immediately initiated, will endanger human life, or health, state
                      property, or the functional capability of a state agency. (APL)
                      Purchase made without following the normal purchasing
                      procedure in order to obtain goods or services quickly to meet an
                      emergency.

      Employee           An individual drawing a salary from a state agency
                         (governmental body), whether elected or not, and any non-
                         compensated individual performing personal services for any
                         state agency (governmental body). (APL)

      End User           See: Using Agency
    Equal, Or Equal      A phrase(s) used to indicate the substitutability of products of
                         similar or superior function, purpose, design, and/or
                         performance characteristics. See: Brand Name Specification.

      Equipment          Personal property, of a durable nature, which retains its identity
                         throughout its useful life.

        Ethics           See "Code of Ethics," "Purchasing Ethics."

   Evaluation of Bid     The process of examining a bid after opening to determine the
                         bidder's responsibility, responsiveness to requirements, and other
                         characteristics of the bid relating to the selection of the winning
                         bid.

    Excess Property      Inventory not required by the owning agency, but of potential
                         utility to one or more agencies of the jurisdiction or to others
                         eligible to receive it by transfer.

   Exempt Agencies       Constitutional departments of the State including the Legislative
                         Council and the Legislative Joint Auditing Committee. (APL)

 Exempt Commodities
    and Services


                                           37
                       Procurement Word Usages and Definitions

  Word or Phrase                                     Definition

   Exhaustion of         A legal doctrine to the effect that where an administrative
   Administrative        remedy is provided by statute or governing rule or regulation,
     Remedies            relief must be first sought from the administrative body, and all
                         attempts to obtain such administrative relief must be expended
                         before the complaining party may look to the courts for relief.

     Expedite            To hasten or to assure delivery of goods purchased in
                         accordance with a time schedule, usually by contact by the
                         purchaser with the vendor.

Expendable Supplies      Tangible supplies other than those treated as nonexpendable.

 Express Warranty        Any affirmation of fact or promise, made by a seller to a buyer,
                         which relates to the goods and becomes part of the basis of the
                         bargain.

External Procurement     Any buying organization not located in this state which, if
      Activity           located in this state, would qualify as a public procurement unit.
                         An agency of the federal government is an external procurement
                         activity. (APL)


         F
 Fair Market Value       A price that would induce a willing purchaser to purchase or a
                         willing seller to sell in an open market transaction; the price a
                         property would bring at a fair sale between parties dealing on
                         equal terms.

     Firm Bid            A bid that binds the bidder until a stipulated time of expiration.

    Fiscal Year          A period of 12 consecutive months selected as a basis for annual
                         financial reporting, planning, or budgeting.

Fixed Price Contract     A contract, which provides for a price that does not change.

 Formal Advertising      The placement of a notice in a newspaper or other publication
                         according to legal requirements to inform the public that the
                         government is requesting bids on specific purchases that it
                         intends to make. See: Legal notice.

Formal Bid or Offer      A bid or offer, which must be forwarded in a sealed envelope
                         and in conformance with a prescribed format to be opened at a
                         specified time.

Forward Purchasing       The purchasing of quantities exceeding immediate needs, e.g., in
                         anticipation of a price increase or a future shortage.

                                           38
                    Procurement Word Usages and Definitions

Word or Phrase                                    Definition

     Fraud            A positive act resulting from a willful intent to deceive another
                      with the purpose of depriving him of his rights or property.

       G

   Good Faith         Means honesty in fact in the conduct or transaction concerned
                      and the observance of reasonable commercial standards of fair
                      dealing.

     Grant            The furnishing by the state of assistance, whether financial or
                      otherwise, to any person to support a program authorized by law.
                      It does not include an award whose primary purpose is to
                      procure an end product, whether in the form of commodities or
                      services. A contract resulting from such an award is not a grant
                      but a procurement contract. (APL)

Gratuitous Offer      An uninvited condition or provision submitted by a bidder or
                      offeror; an unnecessary or unwarranted submission.

    Gratuity          A payment, loan, subscription, advance, deposit of money,
                      services, or anything of more than nominal value, present or
                      promised, unless consideration of substantially equal or greater
                      value is received. See "Code of Ethics," "Purchasing Ethics."

       H
        I
  Informal Bid        An unsealed competitive offer conveyed by letter, telephone,
                      telegram, or other means.

   Inspection         Critical examination and/or testing of items to determine
                      whether they have been received in the proper quantity and in
                      the proper condition and to verify that they conform to the
                      applicable specification.

Inspection Report     A report to inform the purchasing authority of the quality or
                      condition of the items delivered.

Invitation to Bid     All documents or electronic media whether attached or
                      incorporated by reference, utilized for soliciting bids in
                      accordance with the procedures set forth in Ark. Code Ann. §
                      19-11-229, which refers to competitive sealed bidding. (APL).

      Item            Any product, material, or service.




                                        39
                       Procurement Word Usages and Definitions

 Word or Phrase                                      Definition

         J
         K
         L
Late Bid or Proposal     A bid or proposal which is received at the place designated in
                         the Invitation for Bids after the hour established by the invitation
                         as the time by which all bids or proposals must be received.

   Latent Defect         A defect, which could not be discovered by ordinary and
                         reasonable inspection.

    Lead Time            The period of time from date of ordering to date of delivery
                         which the buyer must reasonably allow the vendor to prepare
                         goods for shipment.

       Lease             A contract conveying from one person (lessor) to another
                         (lessee) real estate or personal property for a term in return for a
                         specified rent or other compensation.

  Lease-Purchase         A rental contract in which the renting party's periodic payments
    Agreement            or parts thereof are applied both to fulfill the rental obligation
                         and as installments for eventual ownership of the commodity
                         upon completion of the agreement.

   Legal Notice          The notice that is required by law. Legal notice for some
                         purchases may be the posting of an announcement of the
                         purchase in a public place, the notification of the appropriate
                         bidders from the bidders list, a formal advertisement in a
                         newspaper or newspapers, or a combination of these methods.
                         See: Formal Advertising.

Life-Cycle Costing       A purchasing technique, which considers operation,
                         maintenance, acquisition price, and other costs of ownership in
                         the award of contracts to ensure that the item acquired will result
                         in the lowest total ownership cost during the time the item's
                         function is required.

     Line Item           A purchasing item specified in the Invitation for Bids for which
                         the bidder is asked to give individual pricing information and
                         which, under the terms of the invitation, is usually acceptable to
                         a separate contract award.

Liquidated Damages       A specific sum of money, set as part of a contract, to be paid by
                         one party to the other if he should default on the contract.

     List Price          The published price for an item that a vendor uses for informing
                         customers and potential customers.

                                           40
                     Procurement Word Usages and Definitions

  Word or Phrase                                    Definition

    Local Public        Any county, city, town, state agency, and any other subdivision
  Procurement Unit      of the state or public agency thereof; any fire protection district;
                        regional water distribution district; rural development authority;
                        public authority; any public educational, health, or other
                        institution; any nonprofit corporation during such time that it
                        contracts with the Division of Developmental Disabilities
                        Services of the Arkansas Department of Human Services to
                        provide services to the developmentally disabled, provided such
                        contract exceeds seventy-five thousand dollars ($75,000) per
                        year; and, to the extent not prohibited by law, any other entity
                        which expends public funds for the acquisition or leasing of
                        commodities and service. (APL)

Lowest Responsive and   That bidder who is awarded a contract because his bid in unit
 Responsible Bidder     price, total cost of operation, or value per dollar is lower than
                        any of the bidders whose reputation, past performance, and
                        business and financial capabilities are such that they would be
                        judged by the appropriate government authority to be capable of
                        satisfying the government's needs for the specific contract.
                        Virtually the same as "lowest and best bid," "lowest responsive
                        and responsible bidder," and "most advantageous bid, price and
                        other factors considered."

     Lump Sum           A price agreed upon between vendor and purchaser for a group
                        of items without breakdown of individual values; lot price

        M
      M/WBE             A minority owned business enterprise or a women owned
                        business enterprise or a combination minority and women
                        business enterprise.

    Manufacturer        One who controls the design and production of an item, or
                        produces an item form crude or fabricated materials, or
                        assembles materials or components, with or without
                        modification, into more complex items.

     Material(s)        Item(s) required to perform a function or used in a
                        manufacturing process, particularly those incorporated into an
                        end product or consumed in its manufacture.

        May             Denotes the permissive.




                                          41
                    Procurement Word Usages and Definitions

Word or Phrase                                    Definition

    Minority          An individual who is a citizen or lawful permanent resident of
                      the United States who is:
                      A. A "Black American", a person having origins in any of the
                      Black racial groups of Africa.
                      B. A "Hispanic American", a person of Spanish or Portuguese
                      culture with origins in Mexico, Central or South America, or the
                      Caribbean, regardless of race.
                      C. An "Asian American", a person having origins in any of the
                      original peoples of the Far East, Southeast Asia, the Indian
                      Subcontinent, or the Pacific Islands.
                      D. A "Native American", a person who is a member of, or is
                      eligible to be a member of, a federally recognized Indian tribe. A
                      "federally recognized Indian tribe" means an Indian tribe, band,
                      nation, rancheria, pueblo, colony, or other organized group or
                      community, including any Alaska native village, which
                      recognized by the Secretary of the Interior on October 1, 1985,
                      as having special rights and is recognized as eligible for the
                      services provided by the United States to Indians because of
                      their status as Indians, and any tribe that has a pending
                      application for federal recognition on October 1, 1985, as having
                      special rights and is recognized as eligible for the services
                      provided by the United States to Indians because of their status
                      as Indians, and any tribe that has a pending application for
                      federal recognition on October 1, 1985.
                      E. A "physically disabled person", a person who has a physical
                      impairment, defect, disease, ailment or disability of a permanent
                      nature which in any way limits the type of employment for
                      which the person would otherwise be qualified.

Misrepresentation     A manifestation by words or other conduct that, under the
                      circumstances, amounts to an assertion not in accordance with
                      the facts.

 Mistake in Bid       A miscalculation in composing a bid resulting in an incorrect
                      price or other term, which may affect the bidder's eligibility to
                      be awarded the contract.

Multiple Award        A method of procurement, whereby an indefinite quantity
  Contracts           contract is awarded to more than one supplier for furnishing a
                      like item or category of items. (APL)




                                        42
                          Procurement Word Usages and Definitions

  Word or Phrase                                        Definition

 Multi-Step Bidding         Is a two-phase process consisting of a technical first phase
                            composed of one or more steps in which bidders submit un-
                            priced technical offers to be evaluated by the State, and a second
                            phase in which those bidders whose technical offers are
                            determined to be acceptable during the first phase have their
                            price bids considered. It is designed to obtain the benefits of
                            competitive sealed bidding by award of a contract to the lowest
                            responsive, responsible bidder, and at the same time obtain the
                            benefits of the competitive sealed proposals procedure through
                            the solicitation of technical offers and the conduct of discussions
                            to evaluate and determine the acceptability of technical offers.

         N
      Net Price             Price after all discounts, rebates, etc., has been allowed.

      Net Terms             See "Discount."

       No Bid               A response to an Invitation for Bids stating that the respondent
                            does not wish to submit a bid.

Non-Responsive Bid          A bid that does not conform to the essential requirements of the
                            Invitation for Bids; nonconforming bid, unresponsive bid.

         O
  Obsolete Property         Inventory without utility, due usually to technological
                            development and/or normal wear-and-tear. Obsolete property
                            may be "scrap" with some value because parts can be recovered
                            and reused.

        Offer               The act of one person that gives another person the legal power
                            to create a contract to which both of them are parties; to perform
                            such an act.

Official Responsibility     Direct administrative or operating authority, whether
                            intermediate or final, either exercisable alone or with others,
                            personally or through subordinates, to approve, disapprove,
                            otherwise direct action in the name of a public or private entity.

Open-Market Purchase        A purchase, usually of limited dollar amount, which is made by
                            buying from any available source, as opposed to buying from a
                            bidder who has responded to an Invitation for Bids.

       Owned                For the purposes of determining whether a business is a minority
                            or woman business enterprise, shall mean that the minorities or
                            woman, as the context requires, shall possess an ownership
                            interest of a minimum of 51%.

                                              43
                         Procurement Word Usages and Definitions

   Word or Phrase                                     Definition

          P
    Paper Products         Items manufactured from paper or paperboard. (APL)

   Paper, Recycled         Paper products, which contain recycled fiber in a proportion
                           specified by the State Procurement Director. (APL)

  Performance Bond         A contract of guaranty executed subsequent to award by a
                           successful bidder to protect the government from loss due to his
                           inability to complete the contract as agreed. See: Forfeiture of
                           deposit or bond.

   Perishable Goods        Goods, which are subject to spoilage within a relatively short
                           time.

        Person             Any business, individual, union, committee, club, or other
                           organization or group of individuals. (APL)

  Personal Property        Everything, which is not real property, which is subject to
                           ownership, and which has exchangeable value.

   Personal Services       Infrequent, technical, our unique functions performed by an
                           independent entrepreneur. Personal services contracts almost
                           always run to individuals rather than partnerships, firms or
                           corporations, and the services performed frequently are not the
                           full-time occupation of the contractor. Examples of personal
                           services contracts: translation, technical editing and technical
                           appraisal.

 Political Subdivision     A subdivision of a State, which has been delegated certain
                           functions of local government, and which can include counties,
                           cities, towns, villages, hamlets, boroughs, and parishes.

Pre-Bid or Pre-Proposal    A meeting held prior to the date of bid or proposal submittal,
      Conference           which disseminates to all bidders or proposers in attendance
                           information to assist them in submitting a bid or proposal
                           including, but not limited to, information regarding the M/WBE
                           requirements of the School District.

      Preference           An advantage in consideration for award of a contact granted to
                           a vendor by reason of the vendor's residence, business location,
                           or business classification (e.g., small business).

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



                                             44
                       Procurement Word Usages and Definitions

 Word or Phrase                                      Definition

Pre-Qualification of     The screening of potential vendors in which a government
     Bidders             considers such factors as financial capability, reputation,
                         management, etc., in order to develop a list of bidders qualified
                         to bid on government contract. See: Bidders list; Qualified
                         bidder.

       Price             The amount of money that will purchase a definite quantity,
                         weight, or other measure of a commodity.

 Price Agreement         A contractual agreement in which a purchaser contracts with a
                         vendor to provide the purchaser's requirements at a
                         predetermined price. Usually it involves a minimum number of
                         units, orders placed directly with the vendor by the purchaser,
                         and a limited duration of the contract (usually one year). See:
                         Blanket order; Open-end contract; Requirements contract; Term
                         contracting.

Price Competition        The basis for awarding a contract solely on the consideration of
                         price as submitted on competitive bids or as negotiated under
                         competitive proposals.

   Price Control         The fixing or restricting of prices, especially by a governmental
                         agency.

   Price Fixing          Agreements between competitors to sell at the same price, to
                         adopt formulas for the computation of selling prices, to maintain
                         specified discounts, to maintain predetermined price differentials
                         between different quantities, types, or sizes of products, or other
                         means of setting prices charged to purchasers. See "Collusive
                         Bidding," "Corrupt Combination," "Collusion," or "Conspiracy
                         in Restraint of Trade."

     Price List          See "Price Schedule."

  Price Schedule         A list of prices applying to varying quantities or kinds of goods.

    Price, State         Sales or currently or were last made to a significant number of
                         buyers constituting the general buying public for the
                         commodities or services involved. (APL)

     Printing            The process of transferring images, by the use of standard
                         industrial type printer ink, upon documents such as letterhead,
                         envelopes, pamphlets, booklets, and forms. (APL)




                                           45
                        Procurement Word Usages and Definitions

  Word or Phrase                                      Definition

    Procurement           Buying, purchasing, renting, leasing, or otherwise obtaining of
                          any commodities or services. It also includes all functions that
                          pertain to the obtaining of any public procurement, including
                          description of requirements, selection and solicitation of sources,
                          preparation and award of contract, disposal of commodities and
                          all phases of contract administration;

Procurement Agency        State agency which is authorized by this subchapter, its
                          implementing Rules, or by way of delegation from the State
                          Procurement Director to contract on its own behalf rather than
                          through the central contracting authority of the State
                          Procurement Director

 Procurement Agent        Person authorized by a state agency not having an agency
                          procurement official to enter into and administer contracts and
                          make written determinations and findings with respect thereto in
                          accordance with procedures prescribed by this subchapter. The
                          term also includes an authorized representative acting within the
                          limits of authority;

Professional Behavior     See "Code of Ethics," "Purchasing Ethics."

Professional Services     Infrequent, technical, and/or unique functions performed by
                          independent contractors whose occupation is the rendering of
                          such services. While not limited to licentiates, the services are
                          considered "professional," and the contract may run to
                          partnerships, firms, or corporations as well as individuals.
                          Examples of professional services include medicine and the
                          medical arts, architectural and engineering services, management
                          and systems consultation, research, and the performing arts.

      Proposal            An offer made by one party to another as a basis for negotiations
                          for entering into a contract.

Proposal Evaluation       Factors, usually weighted, relating to management capability,
     Criteria             technical capability, manner of meeting performance
                          requirements, price and other important considerations used to
                          evaluate which proposer in a competitive negotiation has made
                          the most advantageous offer.

      Proposer            A person submitting a proposal in response to a Request for
                          Proposals (RFP).

 Proprietary Article      An item made and marketed by a person or persons having the
                          exclusive right to manufacture and sell it.


                                            46
                         Procurement Word Usages and Definitions

   Word or Phrase                                     Definition

Proprietary Information    Information or data describing technical processes, mechanisms,
                           or operational factors that a business wishes to keep from
                           general public view in order to maintain competitive capabilities
                           in the market. See "Trade Secret."

  Proprietary Services     Work by independent contractors where the process is more
                           important than the product, if any. Proprietary service contracts
                           usually run to partnerships, firms, or corporations rather than
                           individuals and are usually awarded through competition.
                           Examples of proprietary service contracts include janitorial and
                           custodial, protection and security, maintenance and repair, data
                           processing service bureau.

        Protest            A complaint about a governmental administrative action or
                           decision brought by a bidder or vendor to the appropriate
                           administrative section with the intention of achieving a remedial
                           result.

  Public Bid Opening       The process of opening and reading bids, conducted at the time
                           and place specified in the Invitation for Bids and/or the
                           advertisement, and in the view of anyone who wishes to attend.
                           See: Bid opening.

     Public Funds          All state-appropriated and cash funds of state agencies, as
                           defined by applicable law or official ruling. Public funds for
                           purposes of this subchapter shall not include funds administered
                           by, or under the control of, agencies, except public funds.
                           Without necessarily being limited thereto, it does not include
                           grants, donations, research contracts, and revenues derived from
                           self-supporting enterprises which are not operated as a primary
                           function of the agency, no part of which funds are deposited in
                           the State Treasury. (APL)

     Public Notice         The distribution or dissemination of information to interested
                           parties using methods reasonably available. Such methods will
                           often include publication in newspapers of general circulation,
                           electronic or paper mailing lists, and web sites designed by the
                           State of Arkansas and maintained for that purpose

Public Procurement Unit Either a local public procurement unit or a state public
                        procurement unit. (APL)

     Public Record         All information about government activities that is available for
                           public inspection.



                                            47
                       Procurement Word Usages and Definitions

 Word or Phrase                                      Definition

Purchase Description     Specifications or any other document or electronic media
                         describing the commodities or services to be procured. (APL)
                         The words used in a solicitation to describe the supplies,
                         services, or construction to be purchased, including any
                         performance, physical, or technical requirements. Unless the
                         context requires otherwise, the terms "purchase description,"
                         "purchase specification," and "specification" may be used
                         interchangeably.

  Purchase Order         A purchaser's document used to formalize a purchase transaction
                         with a vendor. A purchase order, when given to a vendor, may
                         contain statements as to the quantity, description, and price of
                         the goods or services ordered; agreed terms as to payment,
                         discounts, date of performance, transportation terms, and all
                         other agreements pertinent to the purchase and its execution by
                         the vendor. A purchase order constitutes acceptance of a bid,
                         resulting in a contract.

 Purchase Request        Document written or electronic whereby a using agency requests
                         that a contract be obtained for a specified need. It may include,
                         but is not limited to, the technical description of the requested
                         item, delivery schedule, transportation, criteria for evaluation of
                         solicitors, suggested sources of supply, and information supplied
                         for the making of any written or electronic determination and
                         finding required by this subchapter;

 Purchase Request        Information transmitted by using agency requesting the central
                         purchasing office to effect a contract for a particular need or
                         group of needs. The request may include, but is not limited to, a
                         performance or technical description of the requested item,
                         delivery schedule, transportation mode, criteria for evaluation,
                         suggested sources of supply, and information related to the
                         making of any written determination required by policy or
                         procedure. See "Requisition," "Request for Purchasing
                         Authority."

    Purchasing           The process of obtaining goods or services, including all
                         activities from the preparation and processing of a requisition,
                         through receipt and approval of the final invoice for payment.
                         The acts of preparing specifications, making the purchase, and
                         administering the contract are involved. See: Purchasing cycle.

 Purchasing Agent        An administrator whose job includes soliciting bids for
                         purchases and making awards of purchase contracts; buyer.



                                           48
                       Procurement Word Usages and Definitions

   Word or Phrase                                    Definition

  Purchasing Cycle        The cycle of activities carried out by a purchasing department in
                          the acquisition of goods and services. See Purchasing.

Purchasing Description    Specifications or any other document or electronic media
                          describing the commodities or services to be procured. (APL)

  Purchasing Ethics       Moral concepts and practices based on the principle that the
                          public interest is paramount, applicable to the personnel of the
                          purchasing department and all other persons involved in the
                          purchasing process, particularly with respect to the expenditure
                          of government funds and relationships between public
                          employees and sellers. See "Code of Ethics."

 Purchasing Manuals       A formal collection of information and instructions relative to
                          practices and procedures of the purchasing authority and using
                          agencies.

 Purchasing Official      An administrative officer who directly oversees the activities of
                          Purchasing Agents and other aspects of property management
                          that are joined as separate or subordinate sections under
                          individual administrative control.

  Purchasing, Public      The process of obtaining goods and services for public purposes
                          in accordance with law and procedures intended to provide for
                          the economical expenditure of public funds.

          Q
   Qualified Bidder       A bidder determined by the government to meet minimum set
                          standards of business competence, reputation, financial ability,
                          and product quality for placement on the bidders list. See:
                          Bidders list; Pre-qualification of bidders.

Qualified Products List   A specification which is developed by evaluating various brands
                          and models of an item and listing those that are determined to be
                          acceptable as the only ones for which bids may be submitted; an
                          approved brands list.

  Quality Assurance       A planned and systematic series of actions considered necessary
                          to provide adequate confidence that a product that has been
                          purchased will perform satisfactorily in service.

   Quality Control        The procedures and policies used to ensure adequate quality of
                          goods produced or received.

  Quantity Discount       An allowance determined by the quantity or value of a purchase.
                          See: Discount.

                                            49
                        Procurement Word Usages and Definitions

   Word or Phrase                                     Definition

      Quotation           A statement of price, terms of sale, and description of goods or
                          services offered by a vendor to a prospective purchaser; the
                          stating of the current price of a commodity; the price so stated.

         R
Request for Proposals     All documents, or electronic media, attached or incorporated by
       (RFP)              reference, utilized for solicitation proposals in accordance the
                          procedures set forth in Ark. Code Ann. § 19-11-201 et seq.
                          (APL) A solicitation of responses for goods and/or services for
                          which the scope of work, specifications or contractual terms and
                          conditions cannot reasonably be closely defined. Evaluation of a
                          proposal is based on prior established criteria which may include
                          but may or may not be totally limited to price.

Requirements Contracts    A contract in which the vendor agrees to supply all the
                          purchaser's requirements that arise for an item or items within a
                          specified period. See: Blanket order; Open-end contract; Price
                          Agreement; Term contracting.

     Requisition          An internal document by which a using agency requests the
                          purchasing department to initiate a purchase.

  Responsible Bidder      A person who has the capacity in all respects to perform fully
                          the contract requirements, and the integrity and reliability, which
                          will assure good faith performance. (APL)

  Responsive Bidder       A person who has submitted a bid, which conforms in all
                          material respects to the invitation for bids, including the
                          specifications set forth in the invitation. (APL)

  Restraint of Trade      The effect of contracts or combinations which eliminate or stifle
                          competition, effect a monopoly, artificially maintain prices, or
                          otherwise hamper or obstruct the course of trade and commerce
                          as it would be carried on if left to the control of natural and
                          economic forces.

     Restrictive          Specifications that unnecessarily limit competition by
    Specifications        eliminating items that would be capable of satisfactorily meeting
                          actual needs.

          S
       Salvage            Property that is no longer useful as a unit in its present condition
                          but has some value in addition to its value as scrap, usually
                          because parts from it may be recovered and reused.



                                            50
                       Procurement Word Usages and Definitions

  Word or Phrase                                     Definition

     Sealed Bid          A bid, which has been submitted in a sealed envelope to prevent
                         dissemination of its contents before the deadline for the
                         submission of bids; usually required by the purchasing authority
                         on major purchases to ensure fair competition among bidders.

      Services           Furnishing of labor, time, or effort by a contractor, not involving
                         the delivery of a specific end product other than reports, which
                         are merely incidental to the required performance. This term
                         shall not include employment agreements, collective bargaining
                         agreements, exempt commodities and services, or architectural
                         or engineering contracts requiring approval of Arkansas State
                         Building Services. (APL)

       Shall             Imperative

     Signature           A manual or an electronic or digital method executed or adopted
                         by a party with the intent to be bound by or to authenticate a
                         record which is: (A) Unique to the person using it; (B) Capable
                         of verification; (C) Under the sole control of the person using it;
                         and (D) Linked to data in such a manner that if the data are
                         changed, the electronic signature is invalidated. (APL)

  Small Business         A designation referring to a firm, corporation, or establishment
                         that has a small number of employees, low volume of sales,
                         small amounts of assets, or limited impact on the market, and is
                         independent, i.e., is not an affiliate or subsidiary of a business
                         dominant in its field of operations.

 Small Procurement       Any procurement not exceeding a purchase price of five
                         thousand dollars ($5,000). Small purchases may be procured
                         without seeking competitive bids or competitive sealed bids;
                         however, competition should be used to the maximum extent
                         practicable. Items under state contrad5t are excluded. (APL)
Sole-Source Purchase     An award for a commodity or service to the only known capable
                         supplier, occasioned by the unique nature of the requirement, the
                         supplier, or market conditions.
    Solicitation         The process of notifying prospective bidders or offerors that the
                         jurisdiction wishes to receive bids for furnishing goods or
                         services. The process may consist of public advertising, mailing
                         Invitations for Bids, posting notices, telephone or telegraph
                         messages to prospective bidders, or all of these.




                                           51
                         Procurement Word Usages and Definitions

  Word or Phrase                                      Definition

    Specification          Any description of the physical, functional, or performance
                           characteristics, or of the nature of a supply, service, or
                           construction item. A specification includes, as appropriate,
                           requirements for inspecting, testing, or preparing a supply,
                           service, or construction item for delivery.

    Spot Purchase          A one-time purchase occasioned by a small requirement, an
                           unusual circumstance, or to take advantage of a favorable market
                           condition.

Standard Specification     A specification established through a standardization process to
                           be used for all or most purchases of the item involved.

   Standardization         The process of examining characteristics and needs for items of
  (of Specifications)      similar end usage and developing a single specification that will
                           satisfy the need for most or all purchases for that purpose.

    State Agency           Any office, department, commission, council, board, bureau,
                           committee, institution, legislative body, agency, government
                           corporation, or other establishment or official of the executive,
                           judicial, or legislative branch of this state, except exempt
                           agencies in their procurement of items not subject to Arkansas
                           Constitution, Amendment 54. "State agency" includes exempt
                           agencies when any agency or exempt agency procures any item
                           subject to Arkansas Constitution, Amendment 54. (APL)

    State Contract         A contract for the procurement of commodities or services in
                           volume, awarded by the State Procurement Director. The
                           contract may apply to all or part of the state. (APL)

  State Procurement        Person holding the position created in § 19-11-216, as the head
       Director            of the central procurement office of the State of Arkansas.
                           (APL)

     State Public          The Office of State Procurement and any other procurement
  Procurement Unit         agency of this state. (APL)

      Stationery           Imprinted letterhead and envelopes used by the General
                           Assembly and other departments of state government to identify
                           an individual department, agency, board, commission, etc.
                           (APL)

        Stock              A supply of goods maintained on hand in a supply system to
                           meet anticipated demands.



                                             52
                     Procurement Word Usages and Definitions

Word or Phrase                                     Definition

     Storage           The holding of goods in a designated place for safekeeping; a
                       space or a place for the safekeeping of goods.

  Subcontractor        Any person providing goods and/or services to a prime
                       contractor for profit, if such goods and/or services are procured
                       or used in fulfillment of the prime contractor's obligations
                       arising from a contract with the Palm Beach County School
                       District, except persons providing goods to a prime contractor
                       whose contract with the District is for the provision of materials,
                       equipment, or supplies.

  Supplemental         A contract addendum accomplished by mutual action of the
   Agreement           parties, permissible under emergency purchases, construction
                       work, sole source purchase and otherwise where competition is
                       not required.

    Supplier           A firm that regularly furnishes needed items to a business or
                       government; a vendor.

    Supplies           Items, which are consumed or expended in the course of being
                       used.

    Supplies           Paper and inks used to produce stationery. (APL)

   Suspension          The disqualification of a person to receive invitations for bids or
                       requests for proposals, or the award of a contract by the state, for
                       a temporary period pending the completion of an investigation,
                       and any legal proceedings that may ensue because a person is
                       suspected upon probable cause of engaging in criminal,
                       fraudulent, or seriously improper conduct or failure or
                       inadequacy of performance which may lead to debarment.
                       (APL)

        T
Tabulation of Bids     The recording of bids and bidding data that was submitted in
                       response to a specific invitation for the purposes of comparison,
                       analysis, and record keeping.

 Tax Supported         Institutions that derive at least fifty percent (50%) of
  Institutions         their revenue by appropriation from a taxing jurisdiction.
                       (APL)




                                         53
                       Procurement Word Usages and Definitions

  Word or Phrase                                     Definition

 Term Contracting        A technique in which a source or sources of supply are
                         established for a specified period of time, usually characterized
                         by an estimated or definite minimum quantity, with the
                         possibility of additional requirements beyond the minimum, all
                         at a predetermined unit price. See: Blanket order; Open-end
                         contract; Price agreement; Requirements contract.

Terms and Conditions     A phrase generally applied to the rules under which all bids must
                         be submitted and the terms that are included in most purchase
                         contracts, which are often published by purchasing authorities
                         for the information of all potential bidders.

 Terms of Payment        Purchase transactions require payment for the goods or services
                         received, and with exception of an unusual exchange or barter
                         agreement there are three basic payment terms: cash, open
                         account, and secured account.

      Testing            A phase of inspection, involving the determination by technical
                         means of the physical and chemical properties of items, or
                         compounds thereof, requiring not so much the element of
                         personal judgment as the application of recognized and
                         established scientific principles and procedures.

       Title             The means whereby a person's ownership of property is
                         established.

     Token Bid           A perfunctory offer by a bidder with no serious intent of being
                         the successful bidder; usually submitted to maintain eligibility
                         for the bidders list or as an act of collusion.

        U
Uniform Commercial       Uniform statute law adopted by states for consistency and
       Code              modernity in law governing commercial transactions.

     Unit Price          The price of a selected unit of a good or service (e.g., price per
                         ton, labor hour, foot).

Unit Price Extension     The calculation of the total price of goods by multiplying the
                         price per unit by the number of units purchased.

 Unresponsive Bid        See: Non-responsive bid.

Unsuccessful Bidder      An offer whose bid is not accepted for reasons of price, quality,
                         failure to comply with specifications, etc.



                                           54
                        Procurement Word Usages and Definitions

  Word or Phrase                                      Definition

   Using Agency           State agency, which utilizes any commodities or services
                          purchased under this subchapter. (APL)

        V
       Value              Except as otherwise provided with respect to negotiable
                          instruments and bank collections (47-3-303, 47-4-208 and 47-4-
                          209) a person gives "value" for rights if he acquires them:
                          (a) in return for a binding commitment to extend credit or for the
                          extension of immediately available credit whether or not drawn
                          upon and whether or not a charge-back is provided for in the
                          event of difficulties in collection; or
                          (b) as security for or in total or partial satisfaction of a
                          preexisting claim; or
                          (c) by accepting delivery pursuant to a preexisting contract for
                          purchase; or
                          (d) generally, in return for any consideration sufficient to
                          support a simple contract.

  Value Analysis          An organized effort to analyze the function(s) of products,
                          systems specifications and standards, and practices and
                          procedures, intended to satisfy the required functions(s) in the
                          most economical manner.

      Vendor              An actual or potential supplier of goods and/or services.

    Vendor File           The accumulated record maintained by the central purchasing
                          authority of information relevant to his business relationship
                          with the record of performance under contracts, correspondence,
                          and the results of special-purpose analyses.

        Void              Without legal effect; unenforceable.

        W
 Waiver of Bids(s)        A process authorized by law or rule whereby a government
                          purchasing office may procure items without competitive
                          bidding procedures because of unique circumstances related to a
                          particular need or purchase; also "Waiver of Competition."

Waiver of Mistake or      The act of disregarding errors or technical nonconformities in
    Informality           the bid, which do not go to the substance of the bid and will not
                          adversely affect the competition between bidders.

Written or In Writing     The product of any method of forming characters on paper, or
                          other materials, or viewable screens, which be read, retrieved,
                          and reproduced, including information that is electronically
                          transmitted and stored. (APL)

                                            55
                 Procurement Word Usages and Definitions

Word or Phrase                                Definition

      X
      Y
      Z
    Zoning         The division of a city, town or other created area by legislative
                   regulation into a districts and prescription and application in
                   each district of Rules having to do with structural and
                   architectural designs of buildings and of Rules prescribing use to
                   which buildings within designated districts may be put.




                                    56
            Should you have any comment, suggestions or advice about our training program we would like
            to hear from you. Please send your suggestions to the:

            Office of State Procurement
            Attention: Training Team
            1509 West 7th Street, 3rd Floor
            Little Rock, AR 72201

            Fax: 501-371-9311

            Or Email: Amy.Stoddard@dfa.state.ar.us
            Our web address is: http://www.state.ar.us/dfa/procurement/pro_pro101.html

            1. What classes would you like to see the Office of State Procurement develop?
            ______________________________________________________________________________
            ______________________________________________________________________________
            ______________________________________________________________________________


            2. What material do you think should be covered in the classes taught by the Office of State
            Procurement classes?
            ______________________________________________________________________________
            ______________________________________________________________________________
            ______________________________________________________________________________


            3. Do you know of anyone that could benefit from the classes and/or material that is currently
            being taught by the Office of State Procurement classes?
            ______________________________________________________________________________
            ______________________________________________________________________________
            ______________________________________________________________________________


            4. What new information or suggestions would you like to share with the Office of State
            Procurement?
            ______________________________________________________________________________
            ______________________________________________________________________________
            ______________________________________________________________________________

            5. How do you think the Office of State Procurement can improve on the classes that are already
            being taught?
            ______________________________________________________________________________
            ______________________________________________________________________________
            ______________________________________________________________________________

            Your comments are appreciated, thank-you for sharing them with us.
                                                                                    Amy Stoddard, CPPB
                                                                               Trainer, Facilitator, Buyer
The Vendor Manual                                                          AR Office of State Procurement

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