Dictionary of Procurement Terms

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

Search the Dictionary of Terms

Search Results: 31-40 of 61 results for “O”
  • Operating Budget

    All of the revenues and expenditures to cover the current fiscal period of the government.
  • Operating Lease

    A service lease, usually shortterm, that includes both financing and servicing of the item leased; payments made under the lease are generally not sufficient to recover the full cost of the equipment. See also: Financial Lease.
  • 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 loss that results from choosing an option, taking into account the value of the next-highest-valued alternative.
  • Optical Character Recognition (OCR) (Optical Scanning)

    The process of mechanically or electronically converting images or pictures of text into machine-encoded text.
  • Optimized Production Technology

    A proprietary computerized system that optimizes scheduling and reduces production and process bottlenecks.
  • Option

    A unilateral right in a contract that the entity 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. See also: Option to Extend.
  • Oral Presentation

    A requirement or option in some Requests for Proposals for the topranked proposers to present to the evaluation committee—often through the use of slide shows and illustrations—any clarification, or to expand on any aspects of their proposal that may contribute to the selection of their offer.
  • 1
  • 2
  • 3
  • You're on page 4
  • 5
  • 6
  • 7



Is there a term missing from our dictionary?


Does a more concise or relevant definition apply?


Submit your comments/suggestions to our editorial board at dictionary@nigp.org