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: 1601-1610 of 2469 results

  • Operational Audit

    A structured review of the systems and procedures of an organization to evaluate whether they are being carried out efficiently and effectively. The audit involves establishing performance objectives, agreeing to the standards and criteria for assessment, and evaluating actual performance against targeted performance. (Business, 2002)

  • Operational Research

    The application of scientific methods to the solution of managerial and administrative problems, involving complex systems or processes. (Business, 2002)

  • Opportunity Cost

    The most desired goods or services that are forgone to obtain something else. The next best alternative that must be given up when a choice is made. (Schiller, 2000)

  • Optical Character Recognition (OCR) (Optical Scanning)

    Technology that converts images containing text into formats with editable text. OCR allows for scanned books, screenshots, and photos with text to be turned into editable documents like TXT, DOC, or PDF files. (Nicomsoft, 2012) First used by the U.S. Postal Service in 1965 to sort mail. Also used in the warehousing and inventory control arena of public procurement.

  • Optimized Production Technology

    A production planning and control system, based on finite loading procedures, that concentrates on reducing bottlenecks in a production system to improve efficiency. Its key task is to increase total system throughput by realizing existing capacity in other parts of the system. (Business, 2002)

  • Option

    A unilateral right in a contract which the jurisdiction may choose to exercise to purchase additional supplies or services called for in the contract, or to extend the period of performance.

    See Also: Buyer’s Option

  • Option to Extend

    In accordance with contract terms, an option that allows a continuance of the contract for an additional period of time.

    See Also: Option to Renew

  • Option to Renew

    A contract provision that allows a party to reinstate the contract for an additional term, beyond that stated in the original contract, in accordance with contract terms.

    See Also: Option to Extend

  • Oral Presentations

    In most solicitations, there will be a requirement for oral presentations from the top-ranked offerors. Oral presentations are conducted to allow the offerors to bring to the attention of the evaluation committee any aspects of their offer that may contribute to the selection of their response. It is an opportunity for the offerors to sell the merits of their submission, often using slide shows and illustrative presentations.

  • Order

    An instruction issued to a supplier for goods to be delivered or services to be provided to a given place at a given price.

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