Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 51-60 of 127 results for “F”

  • Firewall

    Security hardware or software for computers that provides a barrier between an entity’s internal (trusted) network and external (untrusted) network data. Firewalls provide a level of protection for the trusted network from malicious data (e.g., viruses, worms, spam) and unauthorized access. Most firewalls adapt a positive control model, where the firewall monitors all incoming and outgoing network data based on rules, collectively referred to as policy. Network data that does not meet the rules is denied access to or not forwarded from the trusted network.

  • Firm

    A partnership or business unit of two or more persons not recognized as a corporation.

  • Firm Bid

    A bid that binds a bidder until a specified time of expiration.

  • Firm Fixed Price (FFP) Contract

    A type of contract providing for a price that is not subject to adjustment on the basis of the contractor’s cost experience in performing the contract. FFP contracts place maximum risk and full responsibility on the contractor for all costs and resulting profit or loss. They provide maximum incentive for the contractor to control costs, perform effectively, and impose a minimum administrative burden upon the contracting parties unless changes are issued or unforeseen events occur during performance. (Nash, Schooner, & O’Brien, 1998)

  • First Article Testing


    See Also: First-Article Inspection (FAI)

  • First In-First Out (FIFO)

    An inventory costing method in which stock acquired earliest is assumed to be sold (issued) first, leaving stock acquired more recently in inventory. Under FIFO, inventory is valued near current replacement costs. Provides for a physical rotation of the stock so that the oldest stock is used first. (Nash, Schooner, & O’Brien, 1998)

    See Also: Last In-First Out (LIFO)

  • First-Article Inspection (FAI)

    A term usually used in the purchase of custom-made goods (design specification). A qualitative method by which the supplier must provide a final production item for the purchaser’s review and approval before the balance of the production run is made and shipped by the supplier. Also known as First-Article Testing.

  • Fiscal Policy

    Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending. The Federal Reserve impacts fiscal policy by their actions to raise or lower interest rates and to monitor and control inflation. (Schiller, 2000)

  • Fiscal Restraint

    Tax hikes or spending cuts intended to reduce aggregate demand. (Schiller, 2000)

  • Fiscal Stimulus

    Tax cuts or spending hikes intended to increase aggregate demand. (Schiller, 2000)

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