- RFP (request for proposal)
- A request for vendors to propose an approach, timeline and price for a project. Common for websites and software, where how the work is done matters as much as cost.
- RFQ (request for quote)
- A request for pricing on work that is already well defined.
- IFB / RFB (invitation or request for bid)
- A formal bid, usually public, where the lowest responsive and responsible bidder is often selected.
- MSA (master services agreement)
- The umbrella contract covering legal terms like payment, confidentiality, ownership and liability, so they don’t need renegotiating for every project.
- SOW (statement of work)
- The project document under an MSA: scope, deliverables, timeline, price and how the work will be accepted.
- SLA (service level agreement)
- Agreed service levels, such as how quickly different kinds of requests are answered.
- NDA (non-disclosure agreement)
- An agreement to keep shared information confidential.
- BAA (business associate agreement)
- Required under HIPAA when a vendor handles protected health information for a healthcare organization.
- Change order
- A written amendment that adjusts scope, timeline or cost once a project is underway.
- Not-to-exceed (NTE)
- A cap on time-and-materials billing that can’t be passed without written approval.
- Cooperative purchasing
- When a public agency buys through a contract another agency already competitively awarded, sometimes called piggybacking.
- Sole source
- A purchase from one vendor without competition, allowed only in specific circumstances under most procurement rules.