Ariz. Admin. Code § R2-7-101 - Definitions

In this Chapter, unless the context otherwise requires:

1. "Affiliate" means any person whose governing instruments require it to be bound by the decision of another person or whose governing board includes enough voting representatives of the other person to cause or prevent action, whether or not the power is exercised. The term applies to persons doing business under a variety of names, persons in a parent-subsidiary relationship, or persons that are similarly affiliated.

2. "Agency chief procurement officer" means the procurement officer within a state governmental unit, who is acting under specific, written authority from the state procurement administrator in accordance with R2-7-202 or any person delegated that authority, in writing, under R2-7-203 . The term does not include any other person within a state governmental unit who does not have this written delegation of authority.

3. "Aggregate dollar amount" means purchase price, including taxes and delivery charges, for the term of the contract and accounting for all allowable extensions and options.

4. "Alternate project delivery methods" means design-build, construction-management-at-risk, and job-order-contracting construction services.

5. "Arizona Procurement Code" means A.R.S. Title 41, Chapter 23 and this Chapter.

6. "Arizona state contract" means a contract established or authorized by the state procurement administrator for use by state governmental units and eligible procurement units.

7. "Award" means a determination by the state that it is entering into a contract with one or more offerors.

8. "Best and Final Offer" means a revision to an offer submitted after negotiations are completed that contain the offeror's most favorable terms for price, service, and products to be delivered.

9. "Bid" means an offer in response to solicitation.

10. "Bidder" means "offeror" as defined in R2-7-101(35).

11. "Brand name or equivalent specification" means a written description that uses one or more manufacturers' product name or catalog item, to describe the standard of quality, performance, and other characteristics that meet state requirements and provides for submission of equivalent products or services.

12. "Brand name specification" means a written description limited to a list of one or more items by manufacturers' product name or catalog item to describe the standard of quality, performance, and other characteristics that meet state requirements.

13. "Clergy" includes the same persons described in A.R.S. § 32-3271(A)(3).

14. "Component" means a part of a manufactured product.

15. "Contract amendment" means a written modification of a contract under A.R.S. § 41-2503(8) or a unilateral exercise of a right contained in the contract.

16. "Cost data" means information concerning the actual or estimated cost of labor, material, overhead, and other cost elements that have been incurred or will be incurred by the offeror or contractor in performing the contract.

17. "Cost-plus-a-percentage-of-cost contract" means the parties to a contract agree that the fee will be a predetermined percentage of the cost of work performed and the contract does not limit the cost and fee before authorization of performance.

18. "Day" means a calendar day and time is computed under A.R.S. § 1-243, unless otherwise specified in the solicitation or contract.

19. "Debarment" means an action taken by the director under R2-7-C901 that prohibits a person from participating in the state procurement process.

20. "Defective data" means data that is inaccurate, incomplete, or outdated.

21. "Dentist" means a person licensed under A.R.S. Title 32, Chapter 11.

22. "Descriptive literature" means information available in the ordinary course of business that shows the characteristics, construction, or operation of an item or service offered.

23. "Eligible procurement unit" means a local public procurement unit, any other state or agency of the United States, or a nonprofit educational or public health institution, including any certified non-profit agency that serves individuals with disabilities as defined in A.R.S. § 41- 2636, that is eligible under a cooperative agreement to use Arizona state contracts.

24. "eProcurement System" means the State's official electronic procurement system as authorized by the state procurement administrator under R2-7-201.

24.25. "Filed" means delivery to an agency chief procurement officer or to the director, whichever is applicable, in a manner specified by the Arizona Procurement Code or a solicitation.

25.26. "Finished goods" means units of a manufactured product awaiting sale.

26.27. "Force account" as used in A.R.S. § 41-2572, means work performed by the state's regularly employed personnel.

27.28. "Governing instruments" means legal documents that establish the existence of an organization and define its powers, including articles of incorporation or association, constitution, charter, by-laws, or similar documents.

28.29. "In writing" has the same meaning as "written" or "writing" in A.R.S. § 47-1201, which includes printing, typewriting, electronic transmission, facsimile, or any other intentional reduction to tangible form.

29.30. "Interested party" means an offeror or prospective offeror whose economic interest is affected substantially and directly by issuance of a solicitation, an award or loss of an award. Whether an offeror or prospective offeror has an economic interest depends upon the circumstances of each case.

30.31. "Legal counsel" means a person licensed as an attorney by the Arizona Supreme Court.

31.32. "May" means something is permissive.

32.33. "Negotiation" means an exchange or series of exchanges between the state and an offeror or contractor that allows the state or the offeror or contractor to revise an offer or contract, unless revision is specifically prohibited by this Chapter.

33.34. "Offer" means a response to a solicitation.

34.35. "Offeror" means a person who responds to a solicitation.

35.36. "Physician" means a person licensed under A.R.S. Title 32, Chapters 7, 8, 13, 14, 15.1, 16, or 17.

36.37. "Price data" means information concerning prices, including profit, for materials, services, or construction substantially similar to the materials, services, or construction to be procured under a contract or subcontract. In this definition, "prices" refers to offered selling prices, historical selling prices, or current selling prices of the items to be purchased.

37.38. "Procurement file" means the official records file of the director whether located in the office of the director, at a public procurement unit, or in the eProcurement System. The procurement file shall include (electronic or paper) the following:

a. List of notified vendors,

b. Final solicitation,

c. Solicitation amendments,

d. Bids and offers,

e. Offer revisions and best and final offers,

f. Discussions,

g. Clarifications,

h. Final evaluation reports, and

i. Additional information, if requested by the agency chief procurement officer and approved by the state procurement administrator.

38.39. "Procurement request" means the document that initiates a procurement.

39.40. "Proposal" means an offer submitted in response to a solicitation.

40.41. "Prospective offeror" means a person that expresses an interest in a specific solicitation.

41.42. "Raw materials" means goods, excluding equipment and machinery, purchased for use in manufacturing a product.

42.43. "Reverse auction" means a procurement method in which offerors are invited to bid on specified goods or services through online bidding and real-time electronic bidding. During an electronic bidding process, offerors' prices or relative ranking are available to competing offerors and offerors may modify their offer prices until the closing date and time.

43.44. "Shall" means something is mandatory.

44.45. "Small business" means a for-profit or not-for-profit organization, including its affiliates, with fewer than 100 full-time employees or gross annual receipts of less than $4 million for the last complete fiscal year.

45.46. "Solicitation" means an invitation for bids, a request for technical offers, a request for proposals, a request for quotations, or any other invitation or request issued by the purchasing agency to invite a person to submit an offer.

46.47. "Source selection method" means a process that is approved by an agency chief procurement officer and used to select a person to enter into a contract for procurement.

47.48. "State procurement administrator" means the individual appointed by the director as a chief procurement officer for the state, or a state procurement administrator's authorized designee. A different title may be used for this position.

48.49. "State procurement office" means an office that acts under the authority delegated to the state procurement administrator.

49.50. "Suspension" means an action taken by the director under R2-7-C901 that temporarily disqualifies a person from participating in a state procurement process.

50.51. "Trade secret" means information, including a formula, pattern, device, compilation, program, method, technique, or process, that is the subject of reasonable efforts to maintain its secrecy and that derives independent economic value, actual or potential, as a result of not being generally known to and not being readily ascertainable by legal means.

Notes

Ariz. Admin. Code § R2-7-101

Adopted as an emergency effective January 1, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 84-6). Emergency expired. Permanent rule adopted effective April 3, 1985 (Supp. 85-2). Amended effective April 2, 1993 (Supp. 93-2). Section repealed; new Section made by final rulemaking at 12 A.A.R. 508, effective April 8, 2006 (Supp. 06-1). Amended by final rulemaking at 18 A.A.R. 3118, effective January 7, 2013 (Supp. 12-4). Amended by final rulemaking at 20 A.A.R. 3510, effective 2/2/2015. Amended by final expedited rulemaking at 28 A.A.R. 2117, effective 8/12/2022.