contract provision that levies a
punitive monetary amount or action to be
taken that is unrelated to the actual cost or
seriousness of the harm caused by the
defaulting party. See also: Liquidated
1. Paid by the day, based on use or service.
2. A daily allowance for business expenses,
including travel, meals, hotel, car rental, etc.
A policy of adding a fixed
percentage to the bid price of a non-preferred
Perfect (Pure) Competition
A market in which no
buyer or seller has market power. This market
contains a large number of buyers and sellers
of approximately equal importance.
The technical, operational, and
quality characteristics of the end item.
Performance Assessment Plan (PAP)
administration tool that contains specific
information on how the contract
administration team will observe and evaluate
performance according to the standards
required by the contract, as negotiated. May
also be referred to as "surveillance.”
A systematic and objective
examination of evidence to provide an
independent assessment of the management
and activities of an organization related to the
economic, efficient, and effective
achievement of outcomes against objective
criteria. May also include assessments that
lead to best practices.
1. An instrument executed, subsequent to
award, by a successful offeror that protects
the public entity from loss in the case of the
offeror’s inability to complete the contract as
2. A risk mechanism that secures the fulfillment
of all contract requirements. May be referred
to as a completion bond.
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.
ool used to measure
performance and quantitatively evaluate
progress toward planned targets.