What is meant by "supply base" in contracting terminology?

In contracting terminology, the term "supply base" refers specifically to the group of suppliers that an organization has developed relationships with, who are contracted to provide goods or services for a project. This group is essential because it often determines the efficiency, quality, and reliability of the supply chain.

The supply base is not just a list of potential suppliers or the overall market for supplies; rather, it is a more tactical and focused group consisting of those suppliers with whom contracts have been established. This allows for better management and assessment of supplier performance, risk, and collaboration.

Additionally, while negotiations with suppliers may occur, the term "supply base" is not limited to those currently in negotiations; it encompasses all suppliers that are formally part of the procurement strategy for a given project. Forming and maintaining a strong supply base is crucial for successful operations and delivery on contracts, as it supports effective procurement practices and contributes to the overall success of a project.