PROCUREMENT GUIDELINES

VII. GLOSSARY AC-340 Form – The contract encumbrance request form that an agency prepares to record a new contract or an amendment onto the OSC Central Accounting System and encumber funds from the current year to ensure that payments can be made. Agency (State Agency) – All state departments, boards, commissions, offices or institutions. This term excludes, however, for the purposes of subdivision five of §355 of the Education Law, the State University of New York and excludes, for the purposes of §6218 (a) of the Education Law, the City University of New York. Furthermore, the term does not include the Legislature or the Judiciary. Agency Specific Contract – A contract where the specifications for the product and/or service are described and defined by an agency to meet its needs. Appendix A – The document containing standard clauses required in all New York State contracts. Attorney General (OAG) – The Office of the Attorney General of the State of New York. The duties of this office are set forth in Executive Law § 63. With regard to procurement, the OAG reviews contract terms to ensure that the interests of New York State are protected. This office also reviews complaints of improper conduct and may conduct examinations into the performance of a contract. Backdrop Contract – A contract resulting from a process in which vendors respond to specifications in order to prequalify for a later solicitation. Such later solicitation will usually be conducted through a competitive mini-bid process. Prices offered under backdrop contracts are generally established as "maximum not to exceed prices.” Where a mini-bid is not required, state agencies are encouraged to negotiate lower prices than the “maximum not to exceed prices” contained in the backdrop contract. The backdrop contracts may be awarded by the Office of General Services for use by all state agencies or by an individual agency for its own use. Best Value – The basis for awarding all service and technology contracts to the offerer that optimizes quality, cost and efficiency, among responsive and responsible offerers. Such basis shall be, wherever possible, quantifiable (State Finance Law §163 (1) (j)). Bid – An offer or proposal submitted by a bidder to provide a product or service at a stated price for the stated contract term. Bid Opening – The formal process in which sealed bids are opened, usually in the presence of one or more witnesses, at the time and place specified in the solicitation. Bid Protest (also known as a Bid Dispute) – A formal written complaint made against the methods employed or decisions made by a state agency in the process leading to the award of a contract.

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