Section 0690-03-01-.02 - DEFINITIONS(1) As used in these Rules, unless the context otherwise requires:(a) "Advisory Council" means the council created and empowered by T.C.A. § 4-56-106.(b) "Agency" means each State board, commission, committee, department, officer, or any other unit of State government.(c) "Agency Term Contract" means a State Agency contract in which a source or sources of supply are established for a specified period of time at an agreed upon unit price or prices.(d) "Aggrieved Respondent" means a respondent, who was not awarded a contract and claims his or her rights were infringed in connection with a solicitation or award by the Central Procurement Office.(e) "Approval Process" means the process by which necessary State approvals are obtained.(f) "Award" means a State Agency's notice to a proposer of the acceptance of a proposal.(g) "Base Contract" means the original written contract prior to any amendments.(h) "Bid" means a response by a vendor to an invitation to bid.(i) "Bidding" means informal written, verbal, or telephone quotations, which may be obtained by a State Agency when a sealed bid is not required.(j) "Bonus" means a disallowed payment, which is made in addition to that which is required by a contract for minimally required performance, and is not based on contractor performance at a definitively specified level beyond that which is minimally required.(k) "Calendar Day" means all days in a month, including weekends and holidays. In the event a final calendar day falls on a weekend, holiday or other day where State offices are closed, the next business day becomes the final calendar day.(l) "Central Procurement Office" means the State office established and empowered by T.C.A. § 4-56-104.(m) "Central Procurement Office Policy" means a documented set of guidelines concerning procurement related strategy, which directs and restricts the plans, decisions, and actions of State procurement professionals as approved by the Procurement Commission in accordance with T.C.A. §§ 4-56-101, et seq.(n) "Chief Procurement Officer" means the official as defined by T.C.A. § 4-56-104.(o) "Competitive Sealed Proposal" means a procurement method in which all proposals are reviewed at a predetermined time and place and a contract is awarded in accordance with the terms of a solicitation.(p) "Contract" means any duly authorized and legally binding written agreement or purchase order for goods or services by and between the State of Tennessee and any person or any separate entity with the independent legal capacity to contract and sue and be sued.(q) "Contract Amendment" means a written contract document that changes, adds, or deletes one or more terms or conditions of an existing contract.(r) "Contract Approval" means the procedures a State Agency must follow to obtain final approval of a contract.(s) "Contracting Party" means a person or legal entity with the independent legal capacity to contract or sue and be sued that has been awarded a contract through proper authority.(t) "Cost-reimbursement Grant" means a Grant Contract in which one or more payments are made to a Grantee that are limited to reimbursement for actual, reasonable, and necessary costs as determined by the State and in accordance with a State approved Grant Budget.(u) "Delegated Authority" means a written document, approved in accordance with Central Procurement Office Policy that authorizes a State Agency to award a grant, make a loan consistent with a grant, or procure goods or services on behalf of the State.(v) "Delegated Grant Authority" means approval given in accordance with Central Procurement Office Policy to a State Agency to issue grants for an individual program within specified limits and guidelines.(w) "Delegated Loan Authority" means approval given in accordance with Central Procurement Office Policy to a State Agency to loan funds and to enter into loan agreements with Contracting Parties in accordance with a State or federally funded program. "Delegated Purchase Authority" means the approval given in accordance with Central Procurement Office Policy to a State Agency to purchase goods or services for an individual program, within specified limits and guidelines.(x) "Delegated State Agency" means a State Agency that, in accordance with Central Procurement Office Policy, has authority to award a grant, make a loan consistent with a grant, or procure goods or services for an individual program within specified limits and guidelines.(y) "Department of General Services" means the State department created and empowered by T.C.A. §§ 4-3-1101, et seq.(z) "Emergency Purchases" means a State Agency purchase made during an actual emergency arising from unforeseen causes without the issuance of a competitive solicitation.(aa) "Endowment Grant" means a limited Grant Contract that originates from a specific appropriation, effecting an award and conveyance of funds or property to a Grantee for a particular purpose to benefit the general public as a whole or some population of the general public. An Endowment Grant is used to transfer funds to a Grantee pursuant to an appropriation.(bb) "Fully Executed" means a signed contract that has been duly approved as evidenced by the affixation, or electronic signatures, of all necessary State signatories as required by applicable statutes, rules or Central Procurement Office Policy.(cc) "Gift means a voluntary transfer of goods or services to the State made gratuitously and without consideration. Essential requisites of a gift are:1. Capacity of the donor to make the gift;2. Intention of the donor to make the gift;3. Completed delivery of the gift to or for the State, and4. Acceptance of the gift by the State.Nothing in this Rule shall be construed to mean that the State must accept any gift.
(dd) "Goods" means all property, including, but not limited to, supplies, equipment, materials, printing, and insurance. The term "Goods" does not include leases, acquisitions, or disposals of an interest in real property.(ee) "Grant" means any grant of money awarded to the State, or awarded by the State to a person or legal entity, for the furnishing by the State of assistance, whether financial or otherwise, to any person or entity to support a program authorized by law. The term "Grant" does not include an award with the primary purpose of procuring an end product, whether in the form of supplies, services, or construction, or any contract resulting from such an award that should otherwise be provided on a competitive basis.(ff) "Grant Budget" means a budget itemizing one or more specific activities or purposes under the grant and the maximum amounts a Grantee, a grant recipient or grant subrecipient may be reimbursed.(gg) "Grantee" or "Grant Recipient" means the person or entity awarded a grant.(hh) "Grantor State Agency" means a State Agency that awards a grant to a person or entity.(ii) "Incentive" means a payment, in addition to that which is required by a contract for minimally required performance, which is explicitly based upon the Contracting Party's performance at a specified level beyond that which is minimally required.(jj) "Interagency Agreement" means an agreement between two State Agencies, neither of which has the legal capacity to sue and be sued or enter into contracts separate and apart from the State that is reduced to writing, contains an adequate description of the duties of each party, a statement of the term of agreement, and a statement of the maximum amount payable as between the State Agencies.(kk) "Invitation to Bid" means a procurement method where a contract is awarded to one or more bidders.(ll) "Necessary Contract Provision" means a specific clause that must be included in a contract, except as otherwise allowed by a rule exception granted pursuant to applicable law.(mm) "No Cost Contract" means a written contract that does not result in a pecuniary obligation between the State and a Contracting Party.(nn) "Notice of Intent to Award" means a State Agency's written notice to a respondent of a solicitation that the evaluation is complete, that names the respondent who is considered for award, and states that the procurement file is open for public inspection.(oo) "Non-responsive" means a person who has submitted a response to a solicitation that fails to conform in all material respects to the solicitation's requirements.(pp) "Parties" means the State, acting by and through one or more of its agencies, and any person or legal entity, with the legal capacity to enter into contracts and sue and be sued, who is a party to a contract.(qq) "Performance Bond" means a surety bond issued by an insurance company or bank to secure a Contracting Party's performance of a contract.(rr) "Procurement" means the act of buying, purchasing, renting, leasing, or otherwise acquiring any goods or services covered by these Rules. It also includes all functions that pertain to the obtaining of any goods or service, including the description of requirements, selection and solicitation of sources, preparation and award of a contract, and all phases of contract administration.(ss) "Procurement Commission" means the State entity created and empowered by T.C.A. § 4-56-102.(tt) "Procuring Agency" means the departments, agencies, and entities of the State of Tennessee which make requisitions for or procure goods or services.(uu) "Proposal" means a proposer's response to a Central Procurement Office's or Delegated State Agency's solicitation for goods or services.(vv) "Proposal Bond" means a surety bond issued by an insurance company, bank, or other financial institution to ensure that the winning proposer will enter into a contract.(ww) "Proposer" means any person or legal entity with the legal capacity to enter into contracts and sue and be sued who responds to a written solicitation for goods or services issued by the Central Procurement Office or a Delegated State Agency.(xx) "Proprietary" means a good or service that is used, produced, or marketed under exclusive legal right of the inventor, maker or service provider that is protected under trade secret, patent, trademark, or copyright law.(yy) "Proprietary Procurement" means a procurement of a service or a product that is manufactured and marketed by a person or persons having the exclusive right to provide the service or manufacture or sell the product.(zz) "Protest" means a written complaint filed by an aggrieved party in connection with a solicitation or award of a contract by the Central Procurement Office.(aaa) "Protest Committee" means the committee created and empowered under T.C.A. § 4-56-103.(bbb) "Purchase Order" means a document issued by the Central Procurement Office or a State Agency to a Contracting Party authorizing a purchase. Upon delivery to the Contracting Party, a "purchase order" becomes a binding contract on both parties.(ccc) "Request for Information" means a solicitation sent to a broad base of potential suppliers for the purpose of developing strategy, building a database, or preparing for a Request for Proposals or a Request for Qualifications.(ddd) "Request for Proposals" means a written solicitation for written proposals to provide goods or services to the State.(eee) "Request for Qualifications" means a written solicitation containing a list of qualifications that must be met before a vendor may propose in response to a Request for Proposals. A written response from a vendor is the appropriate response to a Request for Qualifications.(fff) "Response" means a written response to a solicitation for goods or services.(ggg) "Responsible Proposer" means a person who has the capacity in all material respects to perform fully the contract requirements, and the integrity and reliability that will assure good faith performance.(hhh) "Responsive Proposer" means a person who has submitted a proposal, which conforms in all material respects, to the terms of a solicitation.(iii) "Revenue Contract" means a written contract obligating a State Agency to provide specific deliverable services for monetary compensation.(jjj) "Review Process" means the procedures utilized by the Central Procurement Office when approving or disapproving contracts.(kkk) "Rule Exception" means a request to relax the strict application of certain requirements of these Rules or applicable statute as allowed by applicable law.(lll) "Rules" means the Comprehensive Rules and Regulations concerning the procurement of goods and services adopted by the Procurement Commission of the State of Tennessee.(mmm) "Sealed Proposal" means a respondent's proposal, which is delivered to the State in a sealed envelope in response to the Central Procurement Office's or a State Agency's solicitation.(nnn) "Services" means all personal, professional, and consulting services and agreements procured by the State and formalized by contract.(ooo) "Sole Source Procurement" means a procurement for which only one vendor possesses the unique and singularly available capability to meet the requirement of the solicitation, such as technical qualifications, ability to deliver at a particular time, or services from a public utility or a situation where a particular supplier or person is identified as the only qualified source available to the requisitioning authority.(ppp) "Solicitation" means a written document that facilitates the award of a contract to Contracting Parties for goods or services. Examples of solicitations include, but are not limited to, an Invitation to Bid, a Request for Information, a Request for Proposals, and a Request for Qualifications.(qqq) "Specification" means any description of the physical, functional, or performance characteristics, or of the nature of a supply, service, or construction item. "Specification" includes, as appropriate, requirements for inspecting, testing, or preparing a supply, service, or construction item for delivery.(rrr) "State" means the State of Tennessee, including its departments, agencies, and entities that fall under its purview.(sss) "State Agency" means the departments, agencies, and entities of the State of Tennessee.(ttt) "State Architect" means the person, who oversees the Office of the State Architect.(uuu) "Statewide Contract" means a contract for goods or services established by the Chief Procurement Officer that all State Agencies must utilize and that may be used by local governments, higher education and not-for-profit entities.(vvv) "Subrecipient" is as defined in Office of Management and Budget (OMB) Circular A-133.(www) "Term Contract" means a contract for goods or services in which a source or sources of supply are established for a specified period of time at an agreed upon price or prices.(xxx) "Vendor" means a person or legal entity with the legal capacity to enter into contracts and sue and be sued who provides goods or services to the State through a contract or a purchase order.Tenn. Comp. R. & Regs. 0690-03-01-.02
Original rule filed February 5, 1982; effective June 1, 1982. Amendment filed January 24, 1986; effective April 15, 1986. Repeal and new rule filed November 25, 1987; effective February 28, 1988. Amendment filed July 29, 1998; effective November 28, 1998. Repeal and new rule filed October 22, 2013; effective January 20, 2014.Authority: §§ 4-56-102, 4-56-105, and 12-3-201.