Purchases of supplies, services and major repairs may be made in two different ways:

1. Open Market: a competitive or non-competitive purchase not made under a term contract

2. Term Contract: a source of supply established for a specific period of time, i.e.
fiscal year

Term contracts can be for:

A. Indefinite quantities to be ordered on an “as needed” basis

B. Contracts specifying definite quantities with deliveries extended over the contract
period