Defence & Aerospace Procurement Glossary

The Jeffrey Strategic Glossary defines common terms and acronyms encountered in European defence and aerospace business development. Terms specific to UK Ministry of Defence procurement are marked UK MOD.

If you have questions regarding terminology or would like to provide input to the glossary, please contact Jeffrey Strategic.

 

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Acceptance	The act of accepting by an authorised representative; an indication of a willingness to pay; the assumption of a legal obligation by a party to the terms and conditions of a contract.
Acceptance Criteria	Performance requirements and essential conditions that have to be achieved before project deliverables are accepted.
Acquisition	The obtaining under contract of supplies and services to meet the needs of a project. UK MOD - The activities of setting and managing requirements, negotiating and letting contracts, project and technology management, support and termination or disposal based on a through life approach to acquiring military capability.
Acquisition Cycle	UK MOD - A six phase acquisition cycle comprising Concept, Assessment, Demonstration, Manufacture, In-Service, Disposal (CADMID) for conventional equipment and Concept, Assessement, Demonstration, Migration, In-service, Termination (CADMIT) for services and assets acquisition. (Find out more)
Acquisition Evaluation	Review and analysis of responses to determine supplier's ability to perform the work as requested. This activity may include an evaluation of supplier's financial resources, ability to comply with technical criteria and delivery schedules, satisfactory record of performance and eligibility for award.
Acquisition Strategy	A business and technical management approach designed to achieve programme objectives within the resource constraints imposed. It is the framework for planning, directing, contracting for, and managing a programme. It provides a master schedule for research, development, test, production, fielding, modification, postproduction management, and other activities essential for programme success.
Acquisition Streamlining	Any effort that results in a more efficient and effective use of resources to design, develop, or produce quality systems. This includes ensuring that only necessary and cost-effective requirements are included, at the most appropriate time in the acquisition cycle, in solicitations and resulting contracts for the design, development, and production of new systems, or for modifications to existing systems that involve redesign of systems or subsystems.
Acquisition Operating Framework (AOF)	UK MOD - An authoritative source of policy and best practice for all members of the UK MOD and industry partners concerned with acquisition. Replacing the Acquisition Management System (AMS). (Visit external site)
Allocable Cost	A cost is allocable to a government contract if it: a) is incurred specifically for the contract; b) benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or c) is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.
Alternate Response	A substitute response; an intentional substantive variation to a basic provision or clause of a solicitation by a vendor.
Amendment	A written modification to a contract or purchase order or other agreements.
AOF	See Acquisition Operating Framework
Availability Contracting	A process by which defence contractors are paid according to the amount of time that an asset is available. Availability Contracting is an evolution of the idea of Contractor Logistic Support (CLS), by which services which would previously have been within the writ of military forces are outsourced to private contractors. Also referred to as Contracting for Availability. (Find out more)
Award	Notification to bidder of acceptance of bid.
B
BAFO	See Best And Final Offer
Baseline	A specification that has been formally reviewed and agreed upon, that thereafter serves as the basis for further development, and that can be changed only through formal change control procedures.
Benchmarking	Formal or informal comparison of processes, best practices and performance with equivalent organizations.
Best And Final Offer (BAFO)	The final offer submitted to the contracting authority in a competitive negotiated procurement after written or oral discussions have been conducted.
Best Value (BV)	The most advantageous trade off between price and performance for the government. Best value is determined through a process that compares strengths, weaknesses, risk, price, and performance, in accordance with selection criteria, to select the most advantageous value to the government.
Bid	A tender, proposal or quotation submitted in response to a solicitation from a contracting authority. A bid covers the response to any of the three principal methods of soliciting bids; Invitation To Tender (ITT), Request For Proposal (RFP) and Request For Quotation (RFQ).
Bid/No Bid Decision	The decision whether or not to submit a proposal in response to a bid solicitation. Also referred to as a Go/No-Go decision when applied to a management Control Gate. (Find out more)
Bid Evaluation	A comparison of bids received, including an assessment of the validity of each compared to the tendering requirements.
Bid Package	A subdivision of a project into separate workable components, usually consistent with the Work Breakdown Structure (WBS), for purposes of inviting tenders from suitably qualified bidders. Typically used by main contractors to parcel out work to specialist subcontractors.
Bid Set	A package of data which identifies the article to be purchased, the quantity and delivery, and which includes designs, specifications, quality requirements and general conditions which will govern the contract resulting from acceptance of a bid.
Bid Solicitation	A request, verbal or written, which is made to prospective suppliers for their quotation, tender or offer on goods or services desired by the prospective purchaser. Also referred to as an Invitation for Bids.
Bidder	An individual or organisation that has submitted a bid in response to a solicitation from a contracting authority.
Bidders Conference	A meeting used, generally in complex acquisitions, as a means of briefing prospective bidders and explaining specifications and requirements after the bid solicitation has been issued. Also referred to as a Pre Bid Conference.
Business Case	Information that describes the justification for setting up and continuing a project or procurement. It provides the reasons for the expenditure and is updated at key points during the project or procurement process. UK MOD - The documentation submitted to the Approving Authority at Initial Gate or Main Gate, making the case for proposed expenditure on the next stages of the project.
BV	See Best Value.
C
CA	See Contract Award.
CADMID	UK MOD - A six phase acquisition cycle for the provision of conventional equipment comprising Concept, Assessment, Demonstration, Manufacture, In-Service, Disposal (CADMID). (Find out more)
CADMIT	UK MOD - A six phase acquisition cycle for the provision of services and assets comprising Concept, Assessment, Demonstration, Migration, In-Service, Termination (CADMIT). (Find out more)
CALS	See Continuous Acquisition and Life-Cycle Support.
Capability Management	UK MOD - The translation of requirements within Defence Policy into an approved programme that delivers the required capabilities Though-Life, across the Defence Lines of Development (DLoDs). Also referred to as Through Life Capability Management.
Capability Management Plan (CMP)	UK MOD - The vehicle with which a Capability Planning Group manages the capability shortfalls, requirements, programme and risks associated with typically one or more Level 1 elements of the capability Taxonomy. A CMP will draw on subordinate equipment Through Life Management Plans (TLMPs).
Capture Plan	Documented analysis, strategies, and actions initiated following the pursuit decision that details customer issues, considerations relating to competitor and internal positioning, approaches to be implemented, and management tasks to be implemented to guide the capture of a specific opportunity.
Capture Strategy	A plan to win a defined opportunity. Also referred to as Win Strategy. (Find out more)
CFE	See Contractor Furnished Equipment.
CLS	See Contractor Logistics Support.
Clarification	A government communication with an offeror on a competitively negotiated procurement for the sole purpose of eliminating minor irregularities, informalities, or apparent clerical mistakes in a proposal.
CMP	See Capability Management Plan.
Co-Development	Systems or subsystems cooperatively designed and developed in two or more countries. Shared responsibilities include design and engineering, and may be expanded to include applied research.
Commercial Off-The-Shelf (COTS)	Commercial items that require no unique government modifications or maintenance over the life cycle of the product to meet the needs of the procuring agency.
Competition	An acquisition strategy whereby more than one contractor is sought to bid on a service or function; the winner is selected on the basis of criteria established by the activity for which the work is to be performed. The law and UK MOD policy require maximum competition, to the extent possible, throughout the acquisition life cycle. (Find out more)
Continuous Acquisition and Life-Cycle Support (CALS)	A core strategy to share integrated digital product data through a set of standards to achieve efficiencies in business and operational mission areas.
Contractor	An entity in private industry which enters into contracts with the government to provide goods or services. In this Glossary the word also applies to government-operated activities that perform work on acquisition defence programmes.
Contractor Furnished Equipment (CFE)	Standard items of hardware, electrical equipment, and other standard production or commercial items furnished by a prime contractor as part of a larger assembly.
Contractor Logistics Support (CLS)	The performance of maintenance and/or materiel management functions for a defence system by a commercial activity.
Contractor Owned, Contractor Operated (COCO)	A manufacturing facility owned and operated by a private contractor performing a service, under contract, for the government.
Contractor Support	An overarching term that applies to a contractor’s materiel and/or maintenance support for a system.
Co-Production	Production of a defence system in two or more countries. Involves the transfer of production technology and complex or sensitive subsystem components from the country of origin to countries producing the system. Recipient may expand production to include subsystems and components.
Common Procurement Vocabulary (CPV)	The EU-wide classification system for public procurement contracts. The taxonomy describes contract types in 20 EU languages in order to facilitate the purchase of products and services.
Competition	An acquisition strategy where more than one supplier is solicited to bid on performing a service or function.
Competitive Bidding	Offers submitted by individuals or firms competing for a contract, privilege or right to supply specified services or merchandise.
Compliance Matrix	A document stating levels of bidder compliance against contracting authority requirements.
Contract Amendment	An agreed addition to, deletion from, correction or modification of a contract.
Contract Award (CA)	The notification to a bidder or tenderer of acceptance of a bid or tender which brings a contract into existence.
Contractor	A person or organization that undertakes responsibility for the performance of a contract.
Control Gate	A major project milestone at which project stakeholders may exercise a go/no-go decision on the continuation of project activities into the succeeding phase.
COO	See Cost Of Ownership.
Cost Avoidance	An action taken in the immediate time frame that will decrease costs in the future. For example, an engineering improvement that increases the mean time between failure and thereby decreases operating support costs can be described as a cost avoidance action. It is possible for the engineering change to incur higher costs in the immediate time frame; however, if the net total Life Cycle Cost (LCC) is less, it is a cost avoidance action. The amount of the cost avoidance is determined as the difference between two estimated cost patterns, one before the change and the one after.
Cost Of Ownership (COO)	The annualised presentation of resources consumed directly in the procurement, operation, training, support and maintenance of equipment at all stages of its life.
Cost Savings	An action that will result in a smaller than projected level of costs to achieve a specific objective. Incentive contracts where the contractor and government share in any difference in cost below the estimated target cost incurred by the contractor to achieve the objective of the contract is a cost savings. It differs from a cost avoidance in that a cost target has been set from which the amount of savings can be measured. In a cost avoidance, the amount is determined as the difference between two estimated cost patterns.
COTS	See Commercial Off-The-Shelf.
CPM	See Critical Path Method.
CPV	See Common Procurement Vocabulary.
Critical Path Method (CPM)	A method of project analysis in which normal duration time is estimated for each activity within a project. The critical path identifies the shortest completion period based on the most time-consuming sequence of activities.
D
DA	See Design Authority.
Defence Equipment and Support (DE&S)	UK MOD - An integrated procurement and support organisation created to equip and support the UK Armed Forces. Formed in April 2007 by the merger of the Defence Procurement Agency (DPA) and the Defence Logistics Organisation (DLO) as part of the Defence Acquisition Change Programme (DACP).
Defence Industrial Strategy (DIS)	UK MOD - Aims to improve how military equipment, supplies and services are procured and supported and to provide greater clarity of the military industrial capabilities that need to be retained within the UK. (Find out more)
Defence Lines of Development (DLoDs)	UK MOD - Training, Equipment, Personnel, Information, Concepts and Doctrine, Organisation, Infrastructure, Logistics. Additional overarching theme of Interoperability. (Find out more)
Defence Logistics Organisation (DLO)	UK MOD - Merged in April 2007 with the Defence Procurement Agency (DPA) to form Defence Equipment and Support (DE&S).
Defence Procurement Agency (DPA)	UK MOD - Merged in April 2007 with the Defence Logistics Organisation (DLO) to form Defence Equipment and Support (DE&S).
Deliverable	Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a project. Often used in reference to an external deliverable that is subject to approval by the contracting authority.
Derived Requirements	Requirements which may or may not be explicitly stated in the customer requirements, and which may be inferred from contextual requirements, e.g., applicable standards, laws, policy, common practice, and management decisions.
Design Authority (DA)	The component of the client or its delegated agency responsible for determination of design parameters.
Design Margin	The additional performance included in excess of the stated user requirement to cater for uncertainties in design knowledge, and operational, test and production environments.
DIS	See Defence Industrial Strategy.
DLO	See Defence Logistics Organisation.
DLoDs	See Defence Lines of Development.
Down Select	To reduce the number of contractors working on a program by eliminating one or more for the next phase.
DPA	See Defence Procurement Agency.
Dual Production	In North Atlantic Treaty Organization (NATO) context, production of a weapon system in Europe and United States refers not only to independent production lines for entire systems, but also to interdependent components production.
Dual Source	Two contractors producing the same components or end items for the same program.
E
Earned Value Management (EVM)	An objective measurement of how much work has been accomplished on a project. Provides a balanced management oversight amongst performance, resources and time factors on a project. (Find out more)
ECP	See Engineering Change Proposal.
Economic Ordering Quantity (EOQ)	The most economical quantity of parts to order at one time, considering the applicable procurement and inventory costs.
Economies of Scale	Reductions in unit cost of output resulting from the production of additional units stem from increased specialisation of labor as volume of output increases; decreased unit costs of materials; better utilisation of management; acquisition of more efficient equipment; and greater use of by products.
Engineering Change Proposal (ECP)	A proposal to the responsible authority recommending that a change to an original item of equipment be considered, and the design or engineering change be incorporated into the article to modify, add to, delete, or supersede original parts.
EOQ	See Economic Ordering Quantity.
Event-Driven Acquisition Strategy	An acquisition strategy that links programme decisions to demonstrated accomplishments in development, testing, and production.
EVM	See Earned Value Management.
Executive Summary	A short summary of the main points of the offer aimed at the senior-level decision makers in the customer’s organisation.
F
Fast Tracking	Compressing the project schedule by performing some or all of certain activities in parallel that would normally be done in sequence.
Feasibility Study	A study of the applicability or desirability of any management or procedural system from the standpoint of advantages versus disadvantages in any given case.
Firm and Fixed Price	A fixed price is a risk price subject to adjustment in accordance with agreed Variation of Price (VOP) provisions. A firm price is a risk price not subject to VOP (i.e. including an accepted sum for future inflation).
Flexible Sustainment (FS)	A concept that provides procedural freedom to optimize Life Cycle Costs (LCCs) through trade-offs that are accomplished either during initial or follow-on acquisition. The principal elements of FS are Reliability Based Logistics (RBL) techniques and Trigger Based Item Management (TBIM). Both of these processes attempt to take maximum advantage of commercial industry capabilities and practices.
Focused Logistics	A U.S. DoD initiative that seeks the fusion of information, logistics, and transportation technologies to provide rapid crisis response by allowing for the tracking and shifting of assets en route and the delivery of tailored logistics and sustainment packages directly at the strategic, operational, or tactical level of operations.
Foreign Comparative Testing (FCT)	A U.S. DoD Test and Evaluation (T&E) program that provides funding for U.S. T&E of selected equipment items and technologies developed by allied countries when such items and technologies are identified as having good potential to satisfy valid DoD requirements.
Foreign Military Sales (FMS)	That portion of U.S. security assistance authorized by the Foreign Assistance Act (FAA) of 1961, and the Army Export Control Act (AECA). The recipient provides reimbursement for defense articles and services transferred from the United States. This includes cash sales from stocks (inventories, services, or training) by the DoD.
Formal Agreement	A Memorandum of Understanding (MOU), a Memorandum of Agreement (MOA), or the equiva- lent.
Formal Bid	Bid/quotation/letter/proposal submitted by a prospective supplier in response to the Request For Proposal (RFP), Request For Quotation (RFQ), or other bid solicitation.
FS	See Flexible Sustainment.
Full Rate Production (FRP)	Contracting for economic production quantities following stabilization of the system design and validation of the production process.
G
Gainshare	A method of contracting in which supplier and customer work together to derive mutual advantage. An approach to the review and adjustment of an existing contract, or series of contracts, where the adjustment provides benefits to both parties. (Find out more)
Go/No-go	The opportunity to decide whether or not to proceed. Usually associated with a major project milestone or Control Gate and typically the responsibility of senior management.
Government Furnished Equipment (GFE)	Equipment provided by the government to a contractor. Title to the furnished equipment is retained by the government, and the equipment is generally returned when the contact ends. The equipment is furnished generally because the item(s) are not otherwise available to the contractor, or because the need to obtain them would increase the overall contract cost.
Government Furnished Material (GFM)	Material is government property that may be incorporated into, or attached to, an end item to be delivered under a contract or which may be consumed in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, and small tools and supplies.
Government Furnished Property (GFP)	Property in the possession of or acquired directly by the government, and subsequently delivered to or otherwise made available to the contractor.
Government-Owned Contractor Operated (GOCO)	A manufacturing plant that is owned by the government and operated by a contractual civilian organisation.
H
	No current entries.
I
IDIQ	See Indefinite Delivery Indefinite Quantity
IFB	See Invitation For Bid.
Incentivisation	Stimulation of a commercial supplier by the moderation of risks and/or the adoption of reward systems directly related to supplier performance that produces an overall increase in value for money.
Indefinite Delivery Indefinite Quantity	A contract for supplies or services that does not procure or specify a firm quantity of services (other than a minimum or maximum quantity) and that provides for the issuance of orders for the performance of tasks during the period of the contract. (Find out more)
Industry	The defence industry (private sector contractors) includes large and small organizations providing goods and services to European defence agencies. Their perspective is to represent interests of the owners or stockholders.
Initial Gate	UK MOD - A checkpoint between the Concept and Assessment Phases, intended to encourage early and full exploration of a wide range of options for meeting a particular capability. (Find out more)
Integrated Logistics Support (ILS)	A through life management approach aimed at providing equipment in-service support at the optimum whole life cost. It considers all support elements to influence equipment design and determine support requirements to provide supportable and supported equipment.
Integrated Project Team (IPT)	UK MOD - The body responsible for developing the System Requirement Document, devising equipment solutions to meet that requirement, and managing the procurement and in-service support of the equipment. The Smart Acquisition IPT is characterised by its 'cradle to grave' responsibility, its inclusion of all the skills necessary to manage its project, and its effective and empowered leader. Under Capability Management organisations analogous to IPTs may exist in other Defence Lines of Development (DLoDs).
Integrated Stakeholder Team	UK MOD - Members of MOD and industrial partner staff who are tasked with managing a partnering arrangement.
Interoperability	The ability of systems, units, or forces to provide data, information, materiel, and services to and accept the same from other systems, units, or forces and to use the data, information, materiel, and services so exchanged to enable them to operate effectively together.
Invitation For Bid (IFB)	A request, verbal or written, which is made to prospective suppliers for their quotation, tender or offer on goods or services desired by the prospective purchaser. Also referred to as a Bid Solicitation or Invitation to Bid.
Invitation To Negotiate (ITN)	A request, verbal or written, sent to pre-selected companies and detailing the requirements as far as they are known.
Invitation To Tender (ITT)	A customer bid solicitation document detailing all technical and commercial requirements of a bid. Also referred to as a Request For Proposal (RFP).
ITN	See Invitation To Negotiate.
J
JIT	See Just-In-Time.
Joint Action Plan	UK MOD - A proposal that may be made by the Supplier or Customer during the review process of the Performance Review Agreement, to deal with or mitigate a problem that has arisen. This is not a contractual authority to undertake additional work, commit expenditure or alter a contractual requirement.
Joint Venture (JV)	A form of contracting entity where two or more companies enter into binding agreements to undertake business together.
Just-In-Time (JIT)	A “pull” supply chain system, driven by actual demand. The goal is to produce or provide one part JIT for the next operation. Reduces stock inventories, but leaves no room for schedule error. As much a managerial philosophy as it is an inventory system.
K
Key Requirement	A user or system requirement identified as determining one or more demanding or critical system characteristics.
L
LCC	See Life Cycle Costing.
Lead Time	The time that it would take a supplier to delivery goods after receipt of order.
Letter Of Interest (LOI)	Used when the contracting authority is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later date. Also referred to as a Request For Information (RFI).
Life Cycle Costing (LCC)	A procurement evaluation technique which determines the total cost of acquisition, operation, maintaining and disposal of the items acquired; the lowest ownership cost during the time the item is in use.
Line Item	An item of supply or service specified in a solicitation for which the vendor must specify a separate price.
Line Replaceable Unit (LRU)	An essential support item removed and replaced at field level to restore an end item to an operationally ready condition.
LOI	See Letter Of Interest.
Long Lead Item (LLI)	Those components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable in order to meet the earliest possible date of system completion. Also referred to as Long Lead Time (LLT) Materials.
Long Lead Procurement	The early procurement of material or parts to accommodate early use or long procurement spans. Contractors may choose to seek buyer-approved pre-award commitments of funds to meet the long lead requirements.
LRU	See Line Replaceable Unit.
M
Main Gate	UK MOD - An exacting approval checkpoint between the Assessment and Demonstration stages. A Business Case at Main Gate recommends a single technological and procurement option. (Find out more)
Materiel	Equipment, apparatus, and supplies used by an organization or institution.
Memorandum of Understanding (MOU)	De facto agreement that is generally recognized by all partners as binding even if no legal claim could be based on the rights and obligations delineated therein.
Milestone	A point in time representing a key or important intermediate event in the life of a project. A milestone should be capable of validation by meeting all of the items prescribed in a defining checklist as agreed with the stakeholders.
Modular Contracting	A contracting approach under which the need for a system is satisfied in successive acquisitions of interoperable increments. Each increment complies with common or commercially acceptable standards applicable to Information Technology (IT) so that the increments are compatible with the other increments of IT comprising the system.
N
No Bid	A response to a solicitation for bids stating that respondent does not wish to submit an offer. It usually operates as a procedure consideration to prevent suspension from the vendors list for failure to submit a response. (Find out more)
Non-Recurring Costs (NRCs)	1. Costs that are not proportional to the number of units produced. 2. A one-time cost that will occur on a periodic basis for the same organization. NRCs include preliminary design effort, design engineering, and all partially completed reporting elements manufactured for tests. 3. Training of Service instructor personnel.
O
Offer	A response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. A response to an Invitation For Bid (IFB) or a Request For Proposal (RFP) is an offer. A response to a Request For Quotation (RFQ) is a quote, not an offer.
Offeror	A contractor who submits a proposal in response to a solicitation package.
Offset Agreements	One of various industrial and commercial compensation practices required of defence contractors by foreign governments as a condition for the purchase of defence articles/services in either government-to-government or direct commercial sales.
Option	A contractual clause permitting an increase in the quantity of supplies beyond that originally stipulated or an extension in the time for which services on a time basis may be required.
P
P3	See Public Private Partnership.
PFI	See Private Finance Initiative.
Partnering	An umbrella term that covers all of the associated behaviours and techniques, arrangements and agreements captured in the definitions that use this term. (Find out more)
Phase	A major period in the life of a project culminating in a major milestone. A Phase may encompass several Stages.
PLT	See Procurement Lead Time.
Point Of Contact (POC)	The agreed to communication point between two interfacing organizations.
Point Rating	An evaluation procedure in which a list of criteria, to which values have been assigned, is used to ascertain the individual merits of proposals that have met the mandatory factors specified in a bid solicitation document.
PPP	See Public Private Partnership.
Pre Bid Conference	A meeting used, generally in complex acquisitions, as a means of briefing prospective bidders and explaining specifications and requirements after the bid solicitation has been issued. Also referred to as a Bidders Conference or Preproposal Conference.
Pre-Qualification Questionnaire (PQQ)	Issued to potential suppliers early in the procurement process to screen qualified bidders.
Presolicitation Conference	A meeting held with potential contractors prior to a formal solicitation, to discuss technical and other problems connected with a proposed procurement. The conference is also used to elicit the interest of prospective contractors in pursuing the task.
Public Private Partnership (PPP)	A system in which a government service or private business venture is funded and operated through a partnership of government and one or more private sector companies. (Find out more)
PQQ	See Pre-Qualification Questionnaire.
Prime Contract	A contract agreement or purchase order entered into by a contractor with the government.
Prime Contractor	The principal contractor having overall responsibility for co-ordinating and integrating the activities of a number of sub-systems contractors to meet the overall system specification efficiently, economically and to time.
Private Finance Initiative (PFI)	A system for providing capital assets for the provision of public services. Typically, the private sector designs, builds and maintains infrastructure and other capital assets and then operates those assets to sell services to the public sector. In most cases, the capital assets are accounted for on the balance sheet of the private sector operator. (Find out more)
Pro-active Proposal	A proposal made to a contracting authority without prior formal or informal solicitation and which contains an offer to conduct research, development or production. Also referred to as an Unsolicited Proposal.
Procurement	The process of obtaining materiel and services which includes the determination of requirements and acquisition from a supply system or by purchase from the trade. UK MOD - The activity of acquiring capability, goods and services through the letting of a contract through to receipt of payment.
Procurement Addendum	A supplement to bidding documents issued prior to the receipt of bids, for the purpose of clarifying, correcting, or adding to the bid documents issued previously.
Procurement Cost	Equal to the sum of the procurement cost for prime mission equipment, the procurement cost for support items, and the procurement cost for initial spares.
Procurement Documents	The documents issued to prospective suppliers when inviting bids/quotations for supply of goods/services. Also referred to as Tender Documents.
Procurement Invitation	A method of procurement where a contract results from the selected invitation of competitive bids.
Procurement Lead Time (PLT)	The interval in months between the initiation of procurement action and receipt into the supply system of the production model (excluding prototypes) purchased as the result of such actions, and is composed of two elements: production lead-time and administrative lead-time.
Proposal	An offer, submitted in response to a request from a contracting authority, that constitutes a solution to the problem, requirement or objective in the request.
Q
	No current entries.
R
Red Team Review	High-level review to evaluate a proposal for adherence to requirements and proposal strategies.
Request For Information (RFI)	A customer bid solicitation document used when the buyer is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later date. Also referred to as a Letter Of Interest (LOI).
Request For Proposal (RFP)	A customer bid solicitation document detailing all technical and commercial requirements of a bid. Also referred to as an Invitation To Tender (ITT). (Find out more)
Request For Quote (RFQ)	A customer bid solicitation document detailing all technical and commercial requirements of a bid. A response to an RFQ is not an offer. (Find out more)
Requirements Review	A specification compliance control gate or check point at which adherence to customer requirements is verified.
Responsive Bid	A tender, proposal or quotation that meets all the mandatory requirements stipulated in the solicitation document. Also referred to as a Valid Bid.
RFI	See Request For Information.
RFP	See Request For Proposal.
RFQ	See Request For Quote.
Risk Management	The systematic application of management policies, procedures and practices to the tasks of analysing, evaluating and controlling risk. (Find out more)
Rough Order of Magnitude (ROM)	Estimated cost based on approximate cost models or expert analysis. It is usually based on top level requirements or specifications and an overall prediction of work to be completed to satisfy project requirements.
S
Second Sourcing	Execution of established acquisition strategy to qualify two producers for the part or system. Also referred to as Dual Sourcing.
Simulation Based Acquisition (SBA)	A concept that envisions greater and more integrated use of Modeling and Simulation (M&S) in the US DoD acquisition process. DoD and industry would be enabled by robust, collaborative use of simulation technology that is integrated across acquisition programs and phases.
Smart Acquisition (SA)	UK MOD - A long-term initiative to improve the way the UK MOD acquires defence capability. The aim is "To acquire Defence capability faster, cheaper, better and more effectively integrated". (Find out more)
SOO	See Statement Of Objectives.
SOW	See Statement Of Work.
Sole Source Acquisition	A contract for the purchase of supplies or services that is entered into or proposed to be entered into by an agency after soliciting and negotiating with only one source.
Special Purpose Vehicle (SPV)	UK MOD - A form of contracting entity where two or more companies enter into binding agreements, creating a new contracting entity, to undertake business. Often associated with PPP/PFI contracts.
Standardisation	The process by which NATO nations achieve the closest practicable cooperation among their forces; facilitate the most efficient use of research, development, and production resources; and agree to adopt on the broadest possible basis the use of common or compatible operational, administrative, and logistical procedures; common, compatible or interchangeable supplies, components, weapons or equipment; common or compatible technical procedures and criteria; and common or compatible tactical doctrine with corresponding organizational compatibility.
Standardisation Agreement	The record of an agreement among several or all the North Atlantic Treaty Organization (NATO) member nations to adopt like or similar military equipment, ammunition, supplies and store; and operational, logistical, and administrative procedures. National acceptance of a NATO allied publication issued by the Military Agency for Standardisation (MAS) may be recorded as a Standardisation Agreement (STANAG).
Statement Of Objectives (SOO)	The portion of a contract that establishes a broad description of the government’s required performance objectives.
Statement Of Work (SOW)	A narrative description of products or services to be supplied under contract.
Subcontract	A contract or contractual action entered into by a prime contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services under a prime contract.
Surge	An increase in the production or repair of goods for a limited duration of time.
Surge Production	An increased rate of production necessary to meet demands for defence items due to a wartime or mobilisation situation. This increased rate can be obtained by having excess production capacity available or by utilising multiple shifts of normal capacity machines.
T
Target Cost Incentive Fee (TCIF)	A contract pricing mechanism where the cost can be estimated with a degree of confidence, though not sufficiently so for for the agreement of a firm or fixed price. (Find out more)
TAT	See Turn Around Time.
TCIF	See Target Cost Incentive Fee.
Teaming	An agreement of two or more firms to form a partnership or joint venture to act as a potential prime contractor; or an agreement by a potential prime contractor to act as a subcontractor under a specified acquisition programme; or an agreement for a joint proposal resulting from a normal prime contractor-subcontractor, licensee-licenser, or leader company relationship.
Tender	A proposal, bid or offer that is submitted in response to an Invitation To Tender (ITT), Request For Proposal (RFP), or Request For Quotation (RFQ) from a contracting authority.
Tender Documents	The documents issued to prospective suppliers when inviting bids/quotations for supply of goods/services. Also referred to as Procurement Documents.
Through Life Management	UK MOD - The Department’s recommended approach to managing a project throughout its life cycle, which applies and integrates best practice management techniques to help deliver and sustain the required affordable military capability, in a coherent manner addressing all Defence Lines of Development (DLoDs).
Through Life Capability Management (TLCM)	UK MOD - 1) The translation of requirements within Defence Policy into an approved programme that delivers the required capabilities Though-Life, across the Defence Lines of Development (DLoDs). Also referred to as Capability Management. UK MOD - 2) An approach to the acquisition and in-service management of military capability in which every aspect of new and existing military capability is planned and managed coherently across all DLoDs from cradle to grave. Source: Tom McKane, Team Leader Enabling Acquisition Change, MOD.
Total Quality Management (TQM)	A management philosophy committed to a focus on continuous improvements of product and services with the involvement of the entire workforce.
Turn Around Time (TAT)	Time required to return an item to use between missions or after removal from use.
U
Unsolicited Proposal	A proposal made to a contracting authority without prior formal or informal solicitation and which contains an offer to conduct research, development or production. Also referred to as a Pro-active Proposal.
V
Valid Bid	A tender, proposal or quotation that meets all the mandatory requirements stipulated in the solicitation document. Also referred to as a Responsive Bid.
Value Proposition	An attempt to specifically address how aspects of an offer impact on a customer’s business. (Find out more)
Variable Cost	A cost that changes with the production quantity or the performance of services. This contrasts with fixed costs that do not change with production quantity or services performed.
Vendor	An individual, partnership, corporation, or other activity that sells property, goods, or services. A vendor may supply a government contractor.
Verbal Bid	Undocumented quotation by telephone or other verbal means of communication.
Verification	Confirms that a system element meets design-to or build-to specifications. Throughout the system’s life cycle, design solutions at all levels of the physical architecture are verified through a cost-effective combination of analysis, examination, demonstration, and testing, all of which can be aided by modeling and simulation.
W
WBS	See Work Breakdown Structure.
Win Strategy	A plan to win a defined opportunity. Also referred to as Capture Strategy. (Find out more)
Work Breakdown Structure (WBS)	Deliverable-oriented grouping of project elements that organizes and defines the total work scope of a project. An organized method to break down a project into logical subdivisions or subprojects at lower and lower levels of details.
Work Cycle	A pattern of motions and/or processes that is repeated with negligible variation each time an operation is performed.
Work Packages	Detailed short-span jobs, or material items, identified by the contractor for accomplishing work required to complete the contract. Characteristics of the work package: it represents units of work at levels where work is performed; it is clearly distinguished from all other work packages; it is assignable to a single organisational element; and it has scheduled start and completion dates, as applicable, and interim milestones — all of which are representative of physical accomplishment.
Work Sampling Study	A statistical sampling technique employed to determine the proportion of delays or other classifications of activity present in the total work cycle.
Workaround	A procedure developed for taking into account shortcomings or other problems in a programme and devising workable solutions to get around the problems.
X Y Z
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Sources

Jeffrey Strategic
UK MOD Aquisition Operating Framework (AOF)
Defence Analytical Services Agency (DASA)
Defense Acquisition University (DAU)
PMI:PMBOK
Wideman PM Glossary

 

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