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: 41-50 of 248 results for “P”

  • Performance Bond

    An instrument executed, subsequent to award, by a successful bidder that protects the public entity from loss due to the bidder’s inability to complete the contract as agreed. A risk mechanism that secures the fulfillment of all contract requirements. May be referred to as a ​completion ​bond.

  • Performance Budget

    A budget that links the consumption of resources (inputs) to outputs/outcomes of services for each unit of an entity. This type of budget is commonly used by the government to show the link between the funds provided by the public and the outcome of these services. Decisions made on these types of budgets focus more on outputs or outcomes of services than on decisions made based on inputs.

  • Performance Measures

    Tools used to measure performance and quantitatively evaluate progress toward planned targets.

  • Performance Rating

    CANADIAN The assignment of a rating to a Supplier based on effective performance.

  • Performance Record

    Documentation of a supplier’s past history regarding reliability, on-time delivery, quality issues, and other data that allows the buyer to evaluate overall performance.

  • Performance Requirement

    CANADIAN Requirements that define what the product or service is to do.

  • Performance Specification

    A type of specification that describes the desired outcome or intended use of a commodity and how the commodity will perform (e.g., number of items, distance to travel, time required).

    See Also: Design Specification

  • Performance Work Statement (PWS)

    Similar to a statement of work and is used in performance-based Request for Proposals. It describes the requirements in terms of outcomes rather than prescriptive specifications. This term was developed, and is used by, the US federal government.

  • Performance-Based Budgeting

    Budgeting that attempts to link resource allocation decisions to performance criteria that includes both output and outcome measures. Also referred to as results-oriented budgeting, these forms of budgeting add performance measures that look at outcomes of activities rather than at individual process steps. To be effective, these budget methods must be linked to the overall strategic plan of the organization, and each decision unit must support a particular goal and objective (similar to decision units in zero-based budgeting).

    See Also: Results-Oriented Budgeting

  • Performance-Based Contract

    A results-oriented contracting method that focuses on the outputs, quality, or outcomes that may tie at least a portion of a contractor’s payment, contract extensions, or contract renewals to the achievement of specific, measurable performance standards and requirements. These contracts may include monetary and non-monetary incentives as well as specific remedies.

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