Total Procurement Value
Total Procurement Value is the complete anticipated financial expense (excluding taxes) over the life of the commitment for your goods or services, including optional renewal periods, if applicable. For example, if you plan to procure services that will span a term of five years at $50,000 per year, your Total Procurement Value is $250,000.
Note that departments should consider any additional costs (e.g. taxes) when preparing annual forecasts and/or budgets.