| GLOSSARY |
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Account Value
Number assigned to a specific type of service or commodity. Some account values coincide with a category code. |
Agreement
A written contract between two or more parties, which creates legally binding obligations. |
Buying Green
As a part of the Procurement Stewardship Initiatives, the Procurement Department supports and encourages University of Michigan Departments to buy products that are made from recycled or remanufactured materials, and energy star rated. |
Commodity
An article of trade or commerce. Similar goods or services purchased within the University community are commonly grouped to facilitate proper analysis of individual costs and various market factors. |
Conflict of Interest
When a University employee is in a position to influence the conduct of a project for personal gain due to responsibilities or to arrangements with an outside entity. For more information see the University of Michigan Conflict of Interest Policy. |
Demurrage Charges
Fees assessed for the detention of goods. Example: a monthly fee charged for the rental of compressed gas tanks. |
Dispatch
The process of sending a purchase order to the supplier. |
ePro Requisition
The ePro Requisition (ePro req) is used to purchase goods and services not available through Internal Service Units or University Contracts, or to release against an M-Pathways contract. The ePro req is the only transaction that you complete in M-Pathways to order goods and services. |
F.O.B.
A delivery term meaning "free on board" at a named place. The named place is where merchandise title passes from the seller to the purchaser. This is an important, and often negotiated, aspect of the purchase agreement because whoever holds title in transit is responsible for damages and losses and the filing of claims. |
F.O.B. Destination
The most desirable term for the purchaser. Title is held by the supplier until merchandise is delivered to the purchaser or dock area. The supplier is responsible for damages and losses and the filing of claims up to the time of delivery. |
F.O.B. Destination, Freight Prepaid, and Charged Back
Title of merchandise passes to purchaser at time of delivery; however, transportation and freight charges are prepaid by supplier and added to the invoice. |
F.O.B. Origin
Title of the merchandise passes from the supplier to the purchaser at the moment of delivery to the freight carrier. Purchaser is liable for freight charges, and must file all claims for loss or damage. |
F.O.B. Origin, Freight Prepaid
A delivery term which places liability with the purchaser once the freight leaves the dock, but the supplier is going to pay the shipping costs. |
Fair and Reasonable
A determination that a price is fair and reasonable is really a conclusion that the proposed price is fair to both parties, considering the quality and delivery and other factors. |
Freedom of Information Act (FOIA)
As a public institution in the state of Michigan, The University of Michigan is subject to provisions of the state's Freedom of Information Act (FOIA), "all persons…are entitled to full and complete information regarding the affairs of government and the official acts of those who represent them as public officials and public employees…" Consequently, any individual or organization has the right to inspect and/or receive copies of public records maintained by the University. University of Michigan FOIA Office |
Internal Service Providers
University of Michigan business units that provide goods or services to other University units and departments. Internal Service Providers |
Invoice
A detailed list of goods shipped, or services rendered, with an account of all costs. |
M-marketsite
M-marketsite is the University’s online catalog ordering system that allows faculty and staff to login and place orders from many suppliers utilizing ShortCode(s). |
MPathways Contracts
Contracts within MPathways that contain details of the Agreement between the supplier and the University: description of services, pricing, length of Agreement etc. MPathways contracts are assigned 10-digit numbers starting with the numeral 5. |
Negotiation
A bargaining process involving a buyer and seller, seeking to reach a mutually satisfactory agreement on all phases of a procurement transaction - including price, service, specifications, technical and quality requirements, freight and payment terms. |
Non-Competitive Purchase Award
A non-competitive purchase is a procurement request which restricts solicitation to one source. |
Non-PO Voucher
The Non-PO voucher is a method of payment, used primarily for reimbursements. The Non-PO Voucher should only be used when no other payment method will work. It should be not be used in lieu of the other procurement methods. |
P-Card
University issued credit card. PCard |
PeoplePay
PeoplePay is a web-based tool available to all faculty and staff who make requests for payments to individuals. |
Purchase Order
Authorizing document for provision of goods or services from a supplier; becomes a legally binding contract on acceptance by the supplier. |
Regent Reporting
The Board of Regents requires Procurement Services to report quarterly all non-competitive purchase transactions in excess of $5,000 (see SPG 507.1). |
Request for Information (RFI)
A proposal requested from potential suppliers to determine what products and services are potentially available in the marketplace to meet University needs and to know the capability of a supplier in terms of offerings and strengths of the supplier. An RFI, however, is not an invitation to bid, is not binding on either the University or suppliers, and may or may not lead to an RFP or RFQ. A formal RFQ/RFP is required to make a purchase $5,000.00 and above. |
Request for Proposal (RFP)
An invitation from the University to potential suppliers to submit a proposal based on specific requirements for products and / or services through a bidding process. The competitive bidding process is one of the best methods for leveraging the University’s negotiating ability and purchasing power with suppliers. The RFP process brings structure to the procurement decision and allows the risks and benefits to be identified. A formal RFQ/RFP is required to make a purchase $5,000.00 and above. |
Request for Quotation (RFQ)
The RFQ is used where the specifications of a product or service are already known, and price is the main factor in selecting the successful bidder. A formal RFQ/RFP is required to make a purchase $5,000.00 and above. |
ShortCode
The ShortCode is a six-digit code, which represents a department's chart of accounts, including Account, Fund, Department, Program, Class, and Project Grant. Sometime referred to as SpeedChart in the M-Pathways system. |
Total Cost of Ownership (TCO)
The purchase price of a product and its transportation cost, plus indirect handling, inspection, quality, rework, maintenance, and all other "follow-on" costs associated with the purchase, including costs of disposal. |
Vendor Certification form
A form completed by vendors/supplier, which supplies the University with key information, including taxpayer ID, remit to address, type of business, and minority status. The forms are processed by the Vendor Maintenance team. |
Voucher
An M-Pathways document matching a supplier’s invoice to a purchase order (PO voucher) or to a department’s specified chart-field combination (Non-PO voucher). The voucher defines how and when the supplier will receive payment. |
Warranty
A promise made by a seller that is legally binding. |
