Dictionary of Procurement Terms

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

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Search Results: 1331-1340 of 2469 results

  • Line Function

    One of the three identified functions of a procurement department. This function includes its own authorized work to issue bids, Requests for Proposals, and contracts with suppliers to obtain the necessary materials and services in support of agency operations.

    See Also: Service Function, Staff Function

  • Line Item

    An item of supply or service, specified in an Invitation for Bids or Request for Proposals, for which the bidder must bid a separate price.

  • Line Item Budget

    Fixed budgets with monies appropriated for a particular period, usually one year, that can be tied to a specific project or item. This money is specifically allocated to that project or item and cannot be spent on other uses. They are easy to understand and are designed to maximize control and ensure financial accountability.

  • Line Object

    CANADIAN A departmental classification of expenditure at the source. It is either coincident with the economic object or represents a subdivision of it.

  • Line of Credit

    An arrangement by which a bank or lending institution agrees to lend a specified amount of money to an organization upon authorized request. Assures that cash will be available to meet day-to-day business expenses. (Ferrell & Hirt, 2002)

  • Liquidated Damages

    Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract. May be applied on a daily basis for as long as the breach is in effect. May not be imposed as an arbitrary penalty. The key to establishing liquidated damages is reasonableness. It is incumbent upon the buyer to demonstrate, through quantifiable means, that damages did exist.

    See Also: Penalty Charge, Damages

  • Liquidation

    A process in which a company ceases to be a legal entity, usually because it is insolvent. The company’s assets are then sold by a liquidator to discharge debts. (Business, 2002)

  • Liquidity

    The ability of an asset to be converted into cash. (Schiller, 2000)

  • Liquidity Ratios

    Ratios that measure the speed with which a company can turn its assets into cash to meet short-term debt. (Schiller, 2000)

  • List Price

    The published price of a product or service offered by the seller for sale to potential buyers. Due to competition in the marketplace, the list price may be subject to price discounting. If there is limited competition or strong demand, the price may rise. (Business, 2002)

    See Also: Administered Price

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