Terminology & Definitions
This document provides definitions of key terms used throughout the Procurement Solutions website, agreements, and procurement documents. These definitions are intended to promote clarity, consistency, and shared understanding among members, suppliers, and stakeholders.
Unless otherwise stated, defined terms apply to all Procurement Solutions agreements, competitive processes, and related materials.
1. Organizational Terms
Procurement Solutions
The organization that establishes and manages group purchasing agreements and provides procurement advisory and training services. Procurement Solutions does not assume purchasing authority from participating organizations.
Member
A public-sector or not-for-profit organization that has registered with Procurement Solutions for access to agreements, advisory services, or training resources. Membership does not create a purchasing obligation.
Participating Organization
A Member that elects to purchase goods or services under a Procurement Solutions agreement. All purchasing decisions remain with the Participating Organization.
Supplier
A company or legal entity that responds to a competitive solicitation and, if successful, enters into a standing offer or master agreement with Procurement Solutions.
Awarded Supplier
A Supplier that has successfully completed a competitive procurement process and has executed the applicable agreement.
2. Procurement Process Terms
Competitive Process
A publicly advertised procurement conducted in accordance with applicable trade agreements and public-sector procurement principles, including openness, fairness, transparency, and non-discrimination.
Solicitation Document
The formal procurement document issued by Procurement Solutions (e.g., RFP, RFQ, RFSO) outlining requirements, evaluation criteria, and process rules.
Request for Proposal (RFP)
A competitive procurement process used when solutions may vary and evaluation includes qualitative and financial criteria.
Request for Quotation (RFQ)
A competitive procurement process primarily focused on price where specifications are clearly defined.
Request for Standing Offers (RFSO)
A competitive process used to establish pre-qualified suppliers who may provide goods or services under defined terms for a specified period.
Addendum
A formal written clarification or modification issued during a competitive process.
Evaluation Criteria
The published factors and weighting used to assess submissions. Criteria are disclosed in advance and applied consistently.
Best Value
An evaluation outcome based on a combination of price, quality, experience, service capability, and other disclosed criteria.
Negotiation
A structured and documented process, where permitted in the solicitation, used to clarify or refine proposals following evaluation.
Debriefing
A structured explanation provided to an unsuccessful proponent outlining how their submission was evaluated against the published criteria.
Standing Offer
An agreement that sets out pre-established pricing and terms under which Participating Organizations may purchase goods or services during a defined period.
Framework Agreement
A competitively established agreement that sets contractual terms and conditions under which future purchases may be made.
3. Governance and Compliance Terms
Trade Agreements
Intergovernmental agreements governing public procurement in Canada, including but not limited to the Canadian Free Trade Agreement (CFTA) and applicable regional agreements.
Open Competition
A procurement approach where opportunities are publicly advertised and accessible to all qualified suppliers.
Fairness and Transparency
Core procurement principles requiring consistent treatment of suppliers, disclosure of evaluation criteria, and documentation of decisions.
Procurement Authority
The legal authority retained by each Member organization to approve, commit, and execute purchasing decisions.
No Volume Commitment
A model under which Members are not required to purchase minimum quantities and are not obligated to use any agreement.
Administrative Fee
A fee paid by Awarded Suppliers to support the administration and management of agreements. Administrative fees do not affect evaluation scoring unless explicitly disclosed in the solicitation.
Conflict of Interest
A situation where personal, financial, or organizational interests could improperly influence procurement decisions.
Audit Trail
The documented record of a procurement process, including evaluation notes, scoring sheets, approvals, and award documentation.
4. Agreement and Participation Terms
Master Agreement
The primary legal agreement executed between Procurement Solutions and an Awarded Supplier establishing terms and conditions.
Participation Agreement
An agreement between Procurement Solutions and a Member outlining access rights and general participation terms.
Statement of Work (SOW)
A document describing specific goods or services to be provided, including scope, deliverables, and performance expectations.
Term
The defined duration of an agreement, including any extension options.
Renewal Option
A provision allowing the agreement to be extended under defined conditions.
Performance Standards
Defined service levels or delivery expectations set out in an agreement.
Termination
The formal ending of an agreement in accordance with contractual terms.
5. Advisory and Training Terms
Advisory Services
Procurement-related consulting support provided to Members, including strategy development, solicitation drafting, evaluation framework design, and governance alignment.
Capacity Building
Training or structured learning initiatives intended to strengthen procurement knowledge and defensibility.
Governance Alignment
Ensuring procurement processes are consistent with internal policies, legislative obligations, and trade agreement requirements.
Defensible Decision-Making
A procurement approach supported by documentation, objective evaluation, and adherence to published criteria.
6. General Interpretation
Headings are included for convenience only and do not affect interpretation.
Where a defined term appears in capitalized form, it has the meaning assigned in this document unless otherwise defined in a specific agreement. In the event of a conflict between this document and a signed agreement, the signed agreement prevails.
