terms & conditions
special conditions for equipment and material contracts
These special conditions may supplement the standard terms and
conditions contained in the Invitation for Bid/Proposal for procurement.
1) Indefinite Quantity Contract - Establishes prices,
terms, and conditions for goods and services ordered during a
specified time period. Allows the company to purchase similar
goods or services from multiple sources during the contract period,
but obligates the company to make a minimum amount of purchases
(usually 10% of the estimated contract value). Requires the vendor
to furnish all goods or services ordered up to a maximum amount
(usually 125% of the estimated contract value).
2) Basic Ordering Agreement - Established terms and conditions,
which may include prices for goods or services ordered during
a specified time period. Allows the company to purchase similar
goods or services from multiple sources during the contract period
and does not obligate the company to make any minimum purchase.
Allows the vendor to accept or reject any specific order.
3) Requirements Contract - Establishes prices, terms,
and conditions for goods or services during a specified time period.
Does not allow the company to make any minimum purchase, but obligates
the company to purchase all goods or services covered by the contract
from the designated vendor during the contract period. Requires
the vendor to furnish all goods or services ordered during the
contract period with no maximum limitation.
4) System Contracts - Covers company-designated class
and stock items. Requires the vendor to maintain its own inventory,
accept orders via EDI, and make deliveries to all company locations.
May be an Indefinite Quantity Contract or a Requirements Contract.
5) Cross Docking Contracts - Covers company-designated
class and stock items. Requires the vendor to maintain its own
inventory, accept orders via EDI, and make "same day"
deliveries to company's central warehouse. This may be an Indefinite
Quantity Contract or a Requirements Contract.
6) Term Order for Stock Material - An arrangement whereby
a vendor agrees to supply quantities of a specific list of stock-numbered
items, based on delivery requests issued by Materials Management.
Vendor deliveries are made directly to the company storerooms
in accordance with quoted lead times.
7) Blanket Order for Services or Non-Stock Materials -
An agreement whereby a vendor, in accordance with prearranged
prices and terms, supplies specified services or non-stock materials
at various company locations.
8) Time and Materials Contract - This type contract is
used for services when the scope of work at the time of contract
is not fully defined or the extent or duration of the work cannot
be estimated with sufficient accuracy to permit the lump sum or
unit price contract form to be used.
