Glossary


A

Accelerated Procurement

A procurement method used to buy commodities, such as fuel, that must be obtained quickly due to significant shortages and/or short-term price fluctuations.

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Agency Chief Contracting Officer (ACCO)

A position delegated authority by the Agency Head to organize and supervise the procurement activity of subordinate agency staff in conjunction with the CCPO. See City Chief Procurement Officer (CCPO). The Deputy Agency Chief Contracting Officer (DACCO) works under the ACCO.

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Amendment

A change made to a contract without revoking the entire original agreement. For the purposes of the Annual Procurement Indicators Report, amendments are considered to be changes to contracts that add or subtract funds to reflect programmatic needs, and do not extend the contract's term.

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Amendment Extension

A procurement method to continue a contract for up to one year, most often for a human services program that would otherwise expire and has no other renewal provisions available. These extensions ensure that services can continue without interruption.

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Apprenticeship Programs

Apprenticeship programs, which are approved and registered by the New York State Department of Labor, train skilled workers through a combination of on-the-job training and classroom instruction. The City requires that construction contractors have access to approved apprenticeship programs in order to bid on certain procurements. Moreover, all apprenticeship programs are required to successfully complete a two-year probationary period following their initial registration.

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Architecture/Engineering Services

A class of services specifically related to the preparation of plans and specifications for construction projects. This category does not include construction management, build contracts, or the preparation of environmental studies. Contracts to hire licensed architects or professional engineers are included.

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Assignment

An agreement to transfer from one vendor to another the right to receive payment and the responsibility to perform fully under the terms of the contract. For the purposes of the Annual Procurement Indicators Report, assignments are considered to be transfers that occur under circumstances such as when a vendor defaults, fails to fulfill its responsibilities or otherwise becomes unable to continue, not transfers that occur when a vendor undergoes a corporate change such as a merger, acquisition, or name change.

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Award

The action taken by the agency, based on the evaluation criteria, to select the winning bidder or proposer for a specific competition that results in a contract.

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B

Bid

An offer, as a price, whether for payment or acceptance; a tender given specifically to a prospective purchaser upon request, usually in competition with other bidders.

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Buy-Against

The process by which an agency may obtain from a successor vendor, selected with competition to the maximum practical extent, the goods and services needed to fulfill their requirements after a vendor defaults or fails to fulfill their contract responsibilities.

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C

Capital Project

Capital projects are funded by a budget covering a single fiscal year and involve physical infrastructure used in support of government operations or for general public use. These projects are valued at or over $35,000 and are expected to be utilized for at least five years.

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Change Order

An agency-authorized alteration, change, amendment, or modification to a contract or agreement that adjusts the price or time for performance. A change order permits the vendor to complete work that is included in the scope of the contract and permits the agency to make nonmaterial changes to the scope.

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City Chief Procurement Officer (CCPO)

Position delegated authority by the Mayor to coordinate and oversee the procurement activity of mayoral agency staff, including ACCOs. The Mayor has designated the Director of MOCS as the CCPO.

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Citywide Bidder's List

A list of vendors who do business with the City from whom bids or proposals can be solicited.

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Competitive Sealed Bid (CSB)

The most frequently used procurement method for purchasing goods, construction and standardized services, as well as concessions. CSBs are publicly solicited and awarded to the responsive and responsible vendor that agrees to provide the goods or services at the lowest price, or in the case of concessions, the highest amount of revenue to the City.

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Competitive Proposal (CSP)

See Request for Proposals.

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Comptroller

The citywide elected official authorized to audit the City's financial condition and to advise on fiscal operations, policies, and transactions. The Comptroller is also required to register all contracts before payments can be made to vendors.

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Concept Report

City agencies are required to issue a detailed concept report prior to the release of a Request For Proposals (RFP) that establishes a new client services programs or a substantial reorganization of an existing program. These reports must describe anticipated changes in the number or types of clients, geographic areas to be served, evaluation criteria, service design, price maximums and/or ranges per participant. Concept reports, together with the comments received from the public, are used by agencies to draft the subsequent RFP.

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Concession

Income generating contract for the private use of City-owned property to serve a public purpose. Examples include pushcarts, recreational facilities such as golf courses and tennis courts, and parking lots. Concessions do not include franchises, revocable consents, or leases.

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Construction Change Order (CCO)

Amendments to construction contracts used to implement necessary changes to ongoing construction projects (e.g., unanticipated conditions discovered in the field).

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Construction Services

Construction services provide for the construction, renovation, rehabilitation, repair, alteration, improvement, demolition, and excavation of physical structures, excluding the performance of routine maintenance. This category of services includes trade work such as: painting, carpentry, plumbing, electrical installation, and asbestos and lead abatement.

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Contract

A written agreement between the City and a vendor in an amount that gives rise to obligations that are enforced and recognized by the law.

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Cycle Time

The length of time it takes agencies to process procurements. For this report, cycle time is measured from the date that the public is notified of a procurement to the date it is sent for registration.

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D

Demonstration Project

A short-term, carefully planned pilot exercise to test and evaluate the feasibility and application of an innovative product, approach, or technology not currently used by the City. At the conclusion of the contract term, based upon the documented results of the project, the agency determines whether to competitively acquire or to discontinue the use of the product, approach, or technology.

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Design Change Order (DCO)

An amendment to a design consultant contract (i.e., architecture or engineering).

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Discretionary Award

See Line Item Appropriation.

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E

Emergency Procurement

A method of procurement used to obtain goods and services very quickly, in many instances without competition, when an agency must address threats to life, safety, or property or provide a necessary service on an emergency basis.

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Environmentally Preferable Purchasing (EPP) Laws

The City's Environmentally Preferable Purchasing laws (Local Laws 118, 119, 120, 121, and 123 of 2005) are designed to minimize the environmental harm caused by the City in its role as a consumer of goods. The program focuses on the human health and environmental impact of goods and products purchased by the City to address a host of environmental concerns, including energy and water use, air quality, greenhouse gas emissions, hazardous substances, recycled and reused materials, and waste reduction.

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F

Fiscal Year

The City's fiscal year runs from July 1st to June 30th. The Fiscal 2018 year ran from July 1, 2017 through June 30, 2018.

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Franchise

An income generating contract that confers the right to occupy or use City property, such as streets or parks, to provide a public service. For example, a franchise contract could provide telecommunications or transportation services.

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Franchise and Concession Review Committee (FCRC)

The FCRC has six members: two appointees of the Mayor, one each from the Corporation Counsel, Office of Management and Budget, and the Comptroller, and one voting seat shared by the five Borough Presidents who rotate voting control based on the location of the item under consideration. MOCS oversees agency compliance with the applicable laws and regulations on behalf of the Mayor. Concession awards solicited by CSB require neither a hearing nor a FCRC approval vote. For concessions other than those procured by CSB, the awarding agency and FCRC hold joint public hearings for any award that has a total potential term of at least 10 years, will result in annual revenue to the City of more than $100,000, or is considered to have major land use impacts. Concessions awarded by RFP do not require an approval vote. Concessions awarded pursuant to methods such as a sole source or negotiated concession typically require two FCRC approvals, one to authorize the agency to proceed with the concession and one to approve the resulting agreement.

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G

Goods

This category includes all purchases of physical items, including but not limited to equipment and materials, excluding land or a permanent interest in land. Most purchases of goods above the small purchase limit are made by DCAS.

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Government-to-Government Procurement (or Purchase)

The procurement of goods, services, and construction, or construction-related services directly from another governmental entity.

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H

Health and Human Services (HHS) Accelerator

HHS Accelerator, now part of the Mayor's Office of Contract Services, is a system that facilitates the central management of the procurement process for human services and contractual relationships with client services vendors by creating and maintaining a web-based document vault; creating and maintaining a centralized, electronic and web-accessible categorization system of services provided for all City agencies; prequalifying client services providers; and managing procurements for client services.

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Human Services

A class of services that is provided directly to third party clients. This category includes social services such as: day care, foster care, homeless assistance, housing and shelter assistance, counseling services, youth programs, after-school and recreation programs, senior centers, educational and employment training and assistance, health or medical services, home care, and other similar services. Vendors in this category are primarily nonprofits.

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I

Innovative Procurement

Agencies are permitted by the PPB Rules to test any new procurement method on a limited number of procurements. Once the tested methods are evaluated, PPB determines whether to codify the new methods for future use.

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Intergovernmental Purchase

A fast-track method that enables City agencies to buy goods or services using pre- existing contracts between vendors and other government agencies, typically by the New York State Office of General Services or the United States General Services Administration.

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J

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K

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L

Line Item Appropriation

As part of the City's budget process, the City Council and Borough Presidents provide funding to specific vendors, typically community-based human services organizations, cultural institutions, or other nonprofits. The contracts through which those funds flow are classified as line item or discretionary appropriations.

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Living Wage Law

A law designed to ensure that certain employers who hire workers under City contracts pay their employees a living wage which includes supplemental wages such as health care. New York City establishes a pay rate requirement for certain types of contracts for building services, childcare, Head Start, home care, food services, temporary workers, and services to persons with cerebral palsy. See NYC Administrative Code 6-109.

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M

Modification

See amendment.

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Master Service Agreement

A type of contract under which a vendor or pool of vendors hold a master agreement defining a general scope of services, with specific assignments determined through subsequently-issued task orders.

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Micropurchase

A method used to buy goods, services, or construction valued at up to and equal to $20,000 for most services, or up to $35,000 for construction services. Agencies may buy from any available vendor at a fair price, without formal competition.

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Minority-and Women-Owned Business Enterprises (M/WBEs)

Pursuant to Local Law 1 of 2013, a minority-owned or woman-owned business certified by the New York City Department of Small Business Services as having a real and substantial business presence in the market for the City of New York and being authorized to do business in New York State, including sole proprietorships, partnerships and corporations, in which (1) at least 51% of the ownership interest is held by United States citizens or permanent resident aliens who are either Black Americans, Asian Americans, Hispanic Americans, or women; (2) the ownership interest of such individuals is real, substantial, and continuing; and (3) such individuals have and exercise the authority to control independently the day to day business decisions of the enterprise.

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N

Negotiated Acquisition

The method of procurement that is used when only a few vendors are available to provide the goods or services needed, when there is limited time available to procure necessary goods or services, or when a competitive procurement is otherwise not feasible.

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Negotiated Acquisition Extension (NAE)

This is the sole option to extend certain contracts when extension or renewal terms have been exhausted or are unavailable. It may be utilized to provide an agency sufficient time to draft, issue, and make new awards under a competitive solicitation. These extensions ensure that services may continue uninterrupted. NAEs are also used to ensure the completion of ongoing construction projects that are not finished by the contract's expiration date, and may extend the amount of time and/or money allocated to complete a project.

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O

Open Contract

An unexpired or incomplete contract against which payments are currently being made.

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P

Procurement and Sourcing Solutions Portal (PASSPort)

PASSPort, formerly known as VENDEX, is a user-friendly, online procurement portal, where vendors and agencies can exchange information to create and manage vendor accounts, make determination for contract awards, and complete performance evaluations. Vendor profiles contain disclosures provided by vendors in City administered questionnaires, as well as information provided by City agencies and law enforcement organizations.

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Payee Information Portal (PIP)

PIP is a service that allows vendors to create and manage an online account with their business information, identify the types of goods and services they can provide to the City, view their financial transactions with the City, and enroll in the City's "Bidders' Lists" to receive relevant solicitations.

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Prequalification

A process used by agencies to evaluate the qualifications of vendors for provision of particular categories of goods, services, construction, or construction-related services based on criteria such as experience, past performance, organizational capability, financial capability, track record of compliance, and business integrity.

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Prevailing Wages

Wage schedules mandated by New York State Labor Law (Sections 220 and 230) that define the wages to be paid for certain types of work under construction and building service contracts and subcontracts.

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Prime Contract

An agreement between an entity and a city agency for the provision of goods or services. The term "prime" is most commonly used when an entity or contractor that has entered into an agreement with a city agency, also engages subcontractors (see subcontractor definition) to carry out the responsibilities of such contract.

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Procurement

The process the City uses to buy, purchase, rent, lease, or otherwise acquire any goods, services, or construction. It also includes all functions for obtaining any good, service, or construction including planning, description of requirements, solicitation and selection of sources, preparation and award of contract, and all phases of contract administration, including receipt and acceptance, evaluation of performance, and final payment.

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Procurement Policy Board (PPB)

Pursuant to the New York City Charter, the PPB establishes the rules that govern the methods of selecting procurement types, soliciting bids and proposals, awarding and administering contracts, determining responsibility, retaining records, and resolving contract disputes. The PPB must review its rules, policies, and procedures on an annual basis and submit a report to the Mayor, Comptroller, and City Council with recommendations on agency organization and personnel qualifications in order to facilitate efficient procurement. The PPB consists of five members, three of whom are appointed by the Mayor and two of whom are appointed by the Comptroller.

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Procurement Training Institute (PTI)

A division within DCAS's Citywide Training Center overseen by MOCS that is responsible for the training and certification of NYC procurement professionals. MOCS develops and presents a full curriculum of classes on best practices and compliance with City procurement laws and regulations, schedules classes on various topics, assists agencies with registration, and tracks the certification of those requiring certification.

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Professional Services

Services that require the provider to possess specialized skills, including the holding of advanced degrees and exercise of independent judgement. Examples include: accountants, lawyers, doctors, computer programmers, architectural and engineering services, construction management services, and an array of consulting services, including medical, information technology, and management consulting.

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Project Labor Agreement (PLA)

An agreement between an owner of real property and building trades unions that provides for common labor provisions applicable to all bidders (contractors) and their subcontractors.

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Proposal

An offer made by one person to another as a basis for negotiations for entering into a contract.

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Public Hearing

Public hearings are held on contract awards to ensure transparency in the procurement process and give the public an opportunity to comment on proposed terms. The City conducts hearings on most contracts valued above $100,000. Public hearings are also required for certain franchises and concessions.

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Public Work

Construction, reconstruction or maintenance work done on behalf of a public entity that takes place on public property to benefit the public. Building services that are associated with care and upkeep of an existing building (e.g., cleaners, gardeners, and security guards) are defined as work on behalf of a public entity where the contract is valued at more than $1,500.

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Purchasing Card (P-Card)

An agency-issued credit card that facilitates quick processing of micropurchases at a reduced administrative cost, while providing financial controls, oversight, and transparency.

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Q

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R

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Renewal

Method used to continue operation of a registered contract beyond its initial terms, as stipulated in the original contract.

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Request for Proposals (RFP)

Also known as Competitive Sealed Proposals (CSP), this method is used when an agency must consider factors in addition to price, such as the vendor’s experience and expertise. RFPs are most frequently used when procuring human services, professional services, and architecture/engineering services. RFPs are also used for some concessions, where the agency, in determining which proposal is most advantageous to the City, wishes to consider both the revenue to the City and such other factors or criteria as are set forth in the RFP.

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Required/Authorized Source or Method

A state or federal agency or a private entity (such as a nonprofit) that is funding a particular purchase through a City agency may mandate either the specific vendor to be used for the provision of goods or services, or a specific process for selecting a vendor. In other instances, New York State law provides a "preferred source" procurement method for particular types of vendors (e.g., those employing disabled New Yorkers).

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Requirements Contracts

A contract entered into by a City agency, usually DCAS or DoITT, with a vendor that agrees to supply the City’s entire "requirement" for a particular good or service.

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Responsible Bidder or Proposer

A vendor that has the capability in all respects to perform all contract requirements, and the business integrity and reliability that will assure performance in good faith.

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Retroactive

A retroactive contract is one registered by the Comptroller after the contractual start date.

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Returnable Grant Fund (RGF)

A short-term, interestfree loan program managed by MOCS for nonprofits that do business with the City. MOCS reviews, approves, and processes loan applications. The Fund for the City of New York (FCNY) issues the loans and manages the reporting.

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Revocable Consent

A grant for the private use of City-owned property for purposes authorized in the City Charter (e.g., for cafés and other obstructions), which may be revoked at the City's discretion.

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Regional Input-Output Modeling System (RIMS II)

A system developed by the U.S. Bureau of Economic Analysis that provides a methodology for determining the local economic impact of public spending, including employment multipliers which estimate the change in employment resulting from a $1 million increase in demand for a given industry. The employment multipliers are based on a detailed set of national industry accounts which, in part, measure the typical labor input within each of 62 aggregated industry categories. The employment impact of the City's procurement activity is estimated by matching each contract to an industry and using the corresponding multiplier to compute the number of resulting jobs.

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S

Small Purchase

A method used for buying goods, services, and construction valued at up to and including $100,000.

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Sole Source

This procurement method is used when only one vendor is available to provide the required goods or services. This method is also used to "pass through" funds that support the NYC Economic Development Corporation and the capital construction projects of City-owned cultural institutions. For concessions, agencies may award without competition when it is determined that there is either only one source for the required concession, or that it is to the best advantage of the City to award the concession to one source.

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Solicitation

The process of notifying potential vendors that an agency wishes to receive bids or proposals for furnishing goods, services, or construction. The process may include public advertising, mailing invitations for bids and requests for proposals, posting notices, and/or delivery of telephone or fax messages to prospective vendors.

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Subscription

A method used by agencies to purchase periodicals, off-the-shelf trainings, or memberships in professional organizations.

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Standardized Services

Services that do not typically require a provider to have experience in a specialized field or hold an advanced degree. A standardized service is highly commoditized and procurements for such services are generally awarded based on the lowest price. Examples of Standardized Services include: security, janitorial, secretarial, transportation, office machine repair, collection, and food related services. Contracts for services such as plumbing, electrical, and HVAC for maintenance and repair not related to new construction also fall into this category.

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Subcontractor

A person who has entered into an agreement with a contractor to provide services or perform work that is required pursuant to a contract with a City agency.

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T

Task Order Contract

See Master Service Agreement.

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U

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V

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Vendor

An existing or potential contractor.

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W

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X

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Y

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Z

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