Page 99 - CONTRACT POLICY MANUAL

57. Human Services: Services which maintain or improve the social, economic, physical, or
mental well-being of persons for whom the County bears such a responsibility.

58. Hybrid Contract: Is a contract which consists of multiple procurement type purchases.

59. Incremental Contracting: Contracting in small segments to avoid competitive bid
requirements or Board of Supervisors approval.

60. Indemnification: Protection against incurred loss, damage, or hurt, usually by monetary
compensation.

61. Informal Bid: An unsealed competitive offer conveyed by letter, telephone, telegram, or
other means and under conditions different from those required for formal bidding.

62. Insurance: A contract between a certified insurance firm and the County which provides for
a monetary payment in the event of loss, accident, or death; also, a contract between a
contractor for the County working on County property and an insurance firm, naming the
County as an additional insured, for the purpose of reimbursing the County for any loss
incurred due to the nature of the work being performed by the contractor.

63. Invitation for Bid (IFB): The solicitation document used for competitive sealed bidding for
the purchase of equipment, materials, supplies, services, and construction, for which clear
specifications can be written.

64. Lead Time: The period of time from date of order to date of delivery during which the buyer
must reasonably allow the vendor to prepare goods for shipment; the period of time needed
to process purchase requisitions for bid/proposal solicitation and award of contract.

65. Lobbyist: Any person who receives compensation of $500.00 or more in any calendar month
for engaging in lobbying activities or is employed by his or her employer and receives
compensation of $500.00 or more in any calendar month for engaging in lobbying activities,
as defined in Article 5 Sec. 1-1-80 of the Orange County Codified Ordinances.

66. Liquidated Damages: Liquidated damages clauses are enforceable if: (1) damages are
difficult to ascertain or estimate at the time the contract is formed; and (2) the amount is a
reasonable forecast of compensatory damages in the case of breach. Specifically, if the
liquidated damages amount significantly exceeds the amount of damages prospectively
probable, the liquidated damages clause may not be enforceable. Thus, liquidated damage
clauses may be included in service contracts when the County could suffer financial loss due
to delays in performance. Consistent with legal requirements, the amount of damages listed
in the contract must be a “reasonable forecast” of the County’s actual damages.

67. Milestones: Designated steps of the planned acquisition which usually signify a completion
of a requirement or delivery of materials.

68. Modification: A written order signed by the County Procurement Officer or Deputy
Purchasing Agent, directing the contractor to make changes to the original contract. A change
made to a document in the County System of Records. This type of change is distinguished
from an amendment which requires signatures of both parties.

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