PACKAGING

The process and procedures used to protect Material. Packaging includes cleaning, drying, preserving, packaging, marking, and utilization.

PACKAGING, HANDLING, STORAGE, AND TRANSPORTATION (PHS&T)

One of the principal Elements of Integrated Logistics Support, PHS&T includes the resources, processes, procedures, Design considerations, and methods to ensure that all system, equipment, and support items are preserved, packaged, handled, and transported properly, taking into consideration such factors as environmental conditions, equipment preservation requirements, length of storage time, and transportability.

PACKING

The application or use of shipping containers, and the assembling of items or packages together with necessary blocking, bracing or cushioning, weatherproofing, exterior strapping and marking of shipping container, required for shipping.

PACKING AND CRATING COSTS

The Costs to package a company's products for shipment to its customers.

PARAMETER

1) A determining factor or Characteristic, which is considered to be essential in accurately describing a problem, population, or system. The characteristic is used to calibrate, measure, or calculate a series of results or tests. 2) Any specific quantity or value affecting or describing the theoretical or measurable Characteristics of a unit being considered, which behaves as an independent variable or which depends upon some functional interaction of other quantities in a theoretically determinable manner.

PARAMETRIC COST ESTIMATING

A Cost Estimating Methodology, using statistical relationships between Historical Costs and other program variables such as system physical or performance Characteristics, contractor output measures, and manpower loading, etc. 2) An Estimating technique which employs one or more Cost Estimating Relationships for the measurement of Costs associated with the Development, manufacture, and/or modification of a specified End Item based on its technical, physical, or other characteristics. See also Statistical Cost Estimating.

PARAMETRIC DESIGN/COST EFFECTIVENESS STUDY (PD/CE)

A process of formulating and evaluating a complete range of alternatives involving intrasystem tradeoffs of Components to provide for optimum mission satisfaction Capability, considering Cost as well as Effectiveness.

PART

An item of supply which when joined together with another item is not normally subject to disassembly without disruption or impairment of the Design use of the End Item.

PART NUMBER

1) A contractor, vendor, Government, or manufacturer's drawing or reference number, which provides positive identification without further reference to specific parts lists, model number, symbol numbers, special coding or any other additional Data when used in combination with the Federal Supply Code for manufacturers. 2) The number issued by a contractor to uniquely identify a specific part, group of parts, or Assembly, etc.

PARTIAL PAYMENT

1) Payment of an amount less than the amount due. 2) A payment authorized under a Contract, upon completion of the delivery of one or more complete units called for in the contract, or upon completion of one or more distinct items of service called for in the contract. 3) A payment made against a Termination Claim, upon prior approval, before final settlement of the total termination Claim.

PARTIAL SETTLEMENT

A settlement of a severable portion of a Termination Claim or settlement proposal, evidenced by a partial settlement agreement.

PARTIAL TERMINATION

The Termination of a portion of the work to be performed or services to be rendered under a Contract.

PARTICIPATING ACTIVITY

1) An activity that supports a program through the provision of resources required. 2) A military service that supports the lead service in the development of a Joint Acquisition Program by its contribution of personnel and/or funds.

PARTICIPANTS IN DEFENSE ACQUISITION

The three major participants (players) in defense Acquisition are the Executive Branch, the Legislative Branch, and defense Industry.

PARTS STANDARDIZATION

A procedure used by contractors to minimize the types and kinds of Parts, Materials, and processes by controlling the range of items available for initial selection, and by controlling subsequent additions of new items to the inventory.

PAYMENT

1) The discharge of an Obligation, in whole or in part, by money, or an acceptable equivalent. 2) In the Aggregate fiscal sense, the amount of Cash disbursed, Expenditure checks issued, or vouchers approved and scheduled for payment, net of refunds received.

PAYMENT BOND

A Guarantee of the Payment by persons supplying material or services in the prosecution of work provided for in a Contract. See also Contract Bond.

PAYROLL

1) A list of persons paid or entitled to be paid, with the amount due each. In addition, the payroll may include identification numbers, time worked or quantity produced, gross salary or wages, and deductions. 2) The amount necessary, or the money available, for distribution to those listed. 3) The organization that performs the payroll function.

PAYROLL CODE

The numerical or title identification of a company's personnel structure into groupings or categories for Payroll purposes. Examples of payroll categories are Senior Engineer, General Salary, Hourly, or various alpha/numerical identifiers.

PECULIAR SUPPORT EQUIPMENT (PSE)

Unique equipment required to support and maintain another item of equipment or system. See Common Support Equipment.

PECUNIARY LIABILITY

The statutory obligation of an individual or entity to reimburse the Government for loss or improper application of funds or property arising from his failure to exercise assigned responsibilities.

PENETRABILITY

The probability that a weapon will penetrate a defense environment and arrive and be operational at the ultimate military target.

PER DIEM

A daily or monthly Allowance to cover subsistence and lodging, while in travel status or temporary additional duty away from one's home location. On occasion, local Transportation Costs may also be included in per diem rates.

PERCENT(AGE)

1) A fraction or ratio with 100 fixed and understood as the Denominator. 2) A proportion or share in relation to the whole.

PERCENT CHANGE

1) A change or Variance between two percentages. 2) A measure of change in an index, a percent change is the difference between the index at two different dates, expressed as a percent of the index at the earlier of the two dates. See also Points of Change.

PERFORMANCE

1) The carrying out of a function, or the fulfillment of a duty or obligation. 2) Those operational and support Characteristics of a system that allow it to effectively and Efficiently perform its assigned mission over time. The support characteristics of the system include both supportability aspects of the Design and the support Elements necessary for system operation.

PERFORMANCE AND TIMING

For Software, the measured responsiveness of a defined volume of work to be accomplished in a specific time period under full Mission Profile loading.

PERFORMANCE BOND

A Guarantee of the faithful performance of a contract. See Contract Bond.

PERFORMANCE MEASUREMENT BASELINE

The time-phased Budget plan against which contract performance is measured. The Baseline is formed by the budgets assigned to scheduled Cost Accounts and the applicable indirect budgets. It equals the Total Allocated Budget less Management Reserve.

PERFORMANCE SPECIFICATION

A product Specification which states the complete performance requirements of the product for its intended use, and all of its necessary interface and interchangeability Characteristics.

PERFORMING ACTIVITY

An activity which is responsible for performing a function or service, including the procurement of material or services.

PERIODIC REPORT

A report which conveys essentially the same type of information, updated at prescribed intervals. Also called a Recurring Report.

PERMANENT CONSTRUCTION

Construction which is designed and built to have a degree of structural Adequacy, durability, serviceability, and low deterioration rate.

PERMUTATION(S)

A group of things in which the order of arrangement is a distinguishing feature, as opposed to a Combination in which the order of arrangement is immaterial.

PERSONAL PROPERTY

1) Any items belonging to a specific individual. 2) Machinery, equipment, furniture, test equipment, vehicles, and Accessory and auxiliary items, etc. (excluding Tooling), used or capable of use in the manufacture of supplies, in the conduct of research and test activities, in the performance of service, or for any administrative or general plant purpose. 3) As used in the military establishment, this term is frequently referred to as tangible personal property, and includes such items as flight clothing, small arms, etc., issued to individual service members.

PERSONAL SAFETY

The Engineering and technical studies and Analysis conducted to insure a safe working environment and conditions, and in accordance with existing Government or corporate requirements.

PERSONNEL

1) A generic term for the body of individuals employed by, or active or involved in an Organization. 2) An administrative functional division concerned with this body of individuals.

PERSPECTIVE VIEW

An exterior view of an Assembly without parts removed showing physical appearance of the assembly, including detail views of parts not clearly visible, through the use of cutaway views or sectional views, etc.

PERT CHART

A graphic portrayal of Milestones, activities, and their dependency upon other activities for completion, and a depiction of the Critical Path. See also Program Evaluation and Review Technique.

PETTY CASH

An amount of Cash on hand, or on Deposit, which is set aside for the purpose of making immediate payments of comparatively small amounts.

PHANTOM ORDER

A draft Contract with an industrial establishment for wartime production of a specific product with provisions for necessary preplanning in time of peace and for immediate Execution of the contract upon receipt of proper authority.

PHASE A

The first phase of NASA's Phased Project Planning and Execution concept. Phase A is the Preliminary Analysis Phase wherein: (a) alternate concepts and their feasibility are studied; (b) preliminary objectives and requirements are established; and, (c) gross implementation plans are developed.

PHASE B

The second phase of NASA's Phased Project Planning and Execution concept. Phase B is the Definition Phase wherein: (a) project objectives are finalized; (b) preliminary Design and specifications are established; and, (c) management and procurement approaches are determined.

PHASE C

The third phase of NASA's Phased Project Planning and Execution concept. Phase C is the Design Phase wherein: (a) detailed Design of the selected Configuration is made; (b) requirements are verified; (c) implementation plans are developed; and, (d) detailed schedules and Costs are established. Phase C is often combined with Phase D when the number of hardware units required is very small.

PHASE D

The fourth phase of NASA's Phased Project Planning and Execution concept. Phase D is the Development/Operations Phase wherein project hardware is manufactured, assembled, tested, and operated. Phase D is often combined with Phase C when the number of hardware units required is very small.

PHYSICAL CHARACTERISTIC(S)

Those features or Characteristics which are primarily physical in nature such as weight, shape, volume, etc. See also Functional Characteristics.

PHYSICAL CONFIGURATION AUDIT (PCA)

1) The formal Examination of the "as-built" Configuration of a unit of a Configuration Item (CI) against its technical documentation, in order to establish the CI's initial product Configuration Identification. Approval by the Government program office of the CI product specification and satisfactory completion of the PCA establishes the Product Baseline. A PCA may be conducted on the first Full Rate Production or the first Low Rate Initial Production item.

PHYSICAL INVENTORY

An Inventory of property determined by observation, and evidenced by a listing of the actual count, weight, measure, or the sighting of the items being inventoried.

PHYSICAL STANDARD

A quantitative normal measure (not a dollar Cost) of a requirement for raw material, labor time, machine time, etc., in a manufacturing or similar process. Physical Standards serve as: (a) a basis of production planning, scheduling and Control; (b) a means of determination of material, labor, and machine requirements; (c) a means of projecting workloads in relation to capacity; and, (d) a basis for the determination of standard costs for use in Cost Control and preparation of Budget Estimates.

PICTOGRAPH

A visual presentation of Data by a drawing using picture symbols of the subject matter. In order to show comparison, relative magnitude may be illustrated by proportionate repetition of a picture symbol, or by proportionate differences in size of the related picture symbols.

PIECE PART

A single piece not normally subject to disassembly without destruction or impairment of use, such as resistors, transistors, relays, gears.

PILOT LINE ITEMS

Production items manufactured to confirm Production Feasibility.

PILOT PRODUCTION

A production line normally established during Engineering and Manufacturing Development to test new manufacturing methods and procedures. Pilot production is normally funded by Research, Development, Test, and Evaluation funds until the line is proven. Pilot production is not the same as Low Rate Initial Production.

PLAN

1) A detailed scheme or method for the accomplishment of something. 2) A proposed or tentative project or goal. 3) A course of action. 4) The required actions or capabilities needed to accomplish a mission.

PLANNED MAINTENANCE REQUIREMENT (PMR)

The number of assemblies planned to be replaced within a given scheduled Maintenance cycle.

PLANNED MAINTENANCE SYSTEM (PMS)

Management tools to plan, direct, and Control the Preventive Maintenance of all systems, subsystems, and Components installed.

PLANNED VALUE

An estimated value (dollars or manhours) placed on items of work to be accomplished within a specific time by the doing organization. These values become the Baseline against which the organization must Control and report performance.

PLANNING

1) The making or formulation of a detailed scheme or method for the accomplishment of an objective or goal. 2) The study and Analysis of a job, to define the required work details, Estimate the resources required, and schedule the work to be accomplished.

PLANNING ESTIMATE(S)

Cost Estimates developed on the basis of preliminary information, utilizing formulas and Factors in the absence of formal definition Data and a complete pricing study. Planning estimates are used for program conceptual planning, or fiscal year Budgeting study purposes only, and are not considered valid for contract pricing proposals, nor do they represent a Commitment by a company.

PLANNING FACTOR

1) An Estimating Relationship used to compute the amount and type of effort or resources which will be necessary to develop, produce, acquire, and/or operate a given system. 2) A relationship between different kinds of activities or items reduced to a numerical expression for convenience in planning or programming.

PLANNING PACKAGE

1) A logical aggregation of work within a Cost Account, normally for far term effort, that can be identified and budgeted in early Baseline planning, but is not yet defined into Work Packages. 2) A logical aggregation of work within a Work Breakdown Structure Element used during the development of program plans to facilitate the Allocation of Budget to the Cost accounts following contract Award.

PLANNING, PROGRAMMING, AND BUDGETING SYSTEM (PPBS)

The primary resource Allocation process of DoD. One of three major decision making support systems for defense Acquisition. The PPBS is a formal, systematic structure for making decisions on policy, strategy, and the development of forces and capabilities to accomplish anticipated Missions. The PPBS is a cyclic process containing three distinct, but interrelated phases: (a) planning, which produces the Defense Planning Guidance (DPG); (b) programming, which produces and leads to the approval of the Program Objective Memorandum (POM) for the Military Departments and Defense Agencies; and, (c) Budgeting, which produces the DoD portion of the President's Budget. For DoD, the PPBS is a biennial process starting in January of each odd numbered year with national security guidance to initiate the planning phase, and ending in January of the next odd numbered year with the President's budget submission to Congress. The PPBS is the first of the four phases in the DoD Resource Allocation Process.

PLANT EQUIPMENT

Property of a Capital nature (consisting of machinery, equipment, furniture, vehicles, machine tools, Accessory and auxiliary items, and other production equipment, but excluding special tooling) used or capable of use in the research, Development, manufacture, and test of products, or in the performance of services, or for any administrative or general plant purpose.

PLANT PROPERTY

Capital Assets used in the production of goods and services, but excluding Materials expended in producing them.

POINT ESTIMATE

An Estimate which measures a single numerical value rather than a range of values.

POINT(S) OF CHANGE

A measure of change in an index, a point of change is the difference between the index at two different dates. See also Percent Change.

POINT OF CONTACT

The person serving as the coordinator, action officer, or focal point for an activity.

POLICY

A settled course adopted, or prescribed to be followed, by an individual or group of individuals.

POOLS

1) A grouping of resources for the common advantage of the participants. 2) A term referring to types of Overhead costs. The types of overhead Costs are many and various, and for ease of administration they are accumulated in Accounting records by logical cost groupings called "pools" for subsequent Allocation to the various work orders and contracts.

POST AUDIT

An Examination made after the transactions to be Audited have taken place and have been recorded or approved for recording by designated officials.

POST-DEPLOYMENT SOFTWARE SUPPORT (PDSS)

Software support activities that occur during the Deployment phase of a system's Life Cycle.

POST-PRODUCTION SUPPORT

Systems management and support activities necessary to ensure continued attainment of system Readiness objectives with economical logistic support after cessation of production of the End Item.

POSTING

1) The entering of an item in a record. 2) The act of transferring to an account the detailed or summarized Data contained in a book or document of original entry.

POTENTIAL TERMINATION LIABILITY

That amount of Costs, including applicable profit or fee, which a company would reasonably expect to recover if a contract were terminated by the customer at any point in time during the contract life. See Termination Liability.

PRE-AWARD SURVEY

1) An Evaluation of a prospective contractor's Capability to perform under the terms of a proposed contract. 2) The study of a prospective contractor's financial, organizational, and operational status made prior to contract Award to determine his responsibility and eligibility for Government procurement contracts.

PRECIOUS METALS

Gold, platinum, iridium, rhodium, silver, etc., and alloys of these metals in raw material form such as sheet, bar, foil, powder, wire, leaf, and solutions containing soluble salts of these metals.

PRECONTRACTUAL AUTHORIZATION

Approval by letter or instrument granting a contractor permission to work on a contract or to commit resources prior to finalization of the contract. See Undefinitized Contract Action.

PREDICTED

That which is expected at some future date, postulated on Analysis of past experience.

PRELIMINARY

1) Something introductory, antecedent, or preparatory. 2) The state of affairs in program definition, Configuration development, or Estimate preparation prior to a point defined as Final.

PRELIMINARY ANALYSIS PHASE

Phase A in NASA's Phased Project Planning and Execution concept.

PRELIMINARY DESIGN REVIEW (PDR)

A review conducted to ascertain if the preliminary Design is to be committed to detailed design. A PDR is conducted for each Configuration Item to: (a) evaluate the progress, technical Adequacy, and risk resolution of the selected design approach; (b) determine its Compatibility with performance and Engineering requirements of the Development Specification; and, (c) establish the existence and compatibility of the physical and functional interfaces among the item and other items or equipment, Facilities, Computer Programs, and personnel.

PREMIUM PAY

Payment, in addition to Base pay rates, to personnel for hazardous duty, off site, nonnormal shifts, or Overtime.

PRE-PLANNED PRODUCT IMPROVEMENT (P3I)

Planned future evolutionary improvement of developmental systems for which designed considerations are effected during Development to enhance future application of projected technology. P3I includes improvements planned for ongoing systems that go beyond the current performance envelope to achieve a needed Operational Capability.

PREPRODUCTION PROTOTYPE

An article in final form employing Standard Parts, representative of articles to be produced subsequently in a production line. See Prototype.

PREPRODUCTION PERIOD

The time between beginning work in preparation for production and completion of the first article.

PREPRODUCTION QUALIFICATION TEST

The formal contractual tests that ensure Design integrity over the specified operational and environmental range. These tests usually use Prototype or preproduction hardware fabricated to the proposed production Design Specifications and drawings. Such tests include contractual reliability and maintainability demonstration tests required prior to production release.

PREPROPOSAL ACTIVITY

The technical, Business, planning efforts, and tasks which take place prior to the receipt of a final Request for Proposal (RFP).

PREPROPOSAL CONFERENCE

In negotiated Procurement, a meeting (also known as a Bidders Conference) held with potential contractors a few days after Requests for Proposal have been sent out, to promote uniform interpretation of work statements and specifications by all prospective contractors.

PRESERVATION AND PACKAGING

The application or use of adequate protective measures to prevent deterioration, and damage including the use of appropriate protective wrappings, cushioning, and interior containers, etc.

PRESIDENT'S BUDGET

The Federal Government Budget for a particular Fiscal Year transmitted in January (on the first Monday after January 3rd) to the Congress by the President, in accordance with the Budget and Accounting Act of 1921, as amended. The Presidents Budget includes budgets for all agencies and activities of the Executive Branch, the Legislative Branch, and the Judicial Branch.

PRESOLICITATION CONFERENCE

A meeting held with potential contractors prior to a formal solicitation, to discuss technical and other problems connected with a proposed procurement. The conference is also used to elicit the interest of prospective contractors in pursuing the task.

PREVENTIVE MAINTENANCE

All Maintenance Actions performed in an attempt to retain an item in specified condition by providing systematic inspection, detection, and prevention of incipient Failures, before they become actual failures.

PRICE

1) Value or worth. 2) The sum of money or goods asked or given in exchange for something. 3) The Cost at which something is obtained. 4) The dollar value for which a company will sell its product or commit to a contract. Price includes Profit or Fee added to cost. 5) A Cost Model available on a fee basis to Estimate hardware and software costs.

PRICE AND AVAILABILITY (P&A) DATA

An Estimate of the Cost of an item and its possible delivery dates.

PRICE AND AVAILABILITY (P&A) STUDY

The effort required to prepare Price and Availability Data for use in the preparation of a letter of obligational authority.

PRICE ANALYSIS

The process of examining and evaluating a prospective Price, without an Evaluation of the separate Cost Elements and proposed Profit of the individual offeror whose price is being evaluated. Price Analysis may be accomplished by: (a) a comparison of submitted quotations; (b) a comparison of price quotations and contract prices with current quotations for the same or similar items; (c) the use of parameters (dollars per pound, for instance); and/or, (d) a comparison of proposed prices with independently developed Cost Estimates.

PRICE BREAKDOWN

The orderly listing of the Functional Cost Categories and their Cost Elements which constitute a Price.

PRICE (LEVEL) INDEX

1) A ratio indicating the relationship between Prices at two different time periods. Labor and Materials, within designated industry areas, are the two resources usually considered in determining a price index. The costofliving index is a form of price index. 2) A Factor used to convert Constant Dollar amounts from one year to another.

PRICE LIST

A listing of sales or catalog Prices for a company's products.

PRICE NEGOTIATION MEMORANDUM (PNM)

The document that relates the story of a Negotiation. The document has two objectives: (a) establishing the reasonableness of the agreement reached with the successful offeror; and, (b) serving as the permanent record of the decisions the negotiator made in establishing that the price was fair and reasonable.

PRICED BILL OF MATERIAL

A list of all Material complete with unit and total Prices for a specific subassembly, Assembly, or End Item. See Bill of Material.

PRICING

1) The establishment of a sales Price. 2) The development and justification of sales price proposals, including the selection, projection, and Evaluation of rates, ratios, Factors, and comparative analyses with present or past programs and Market evaluations.

PRICING AGREEMENTS

A written agreement between the contractor and the Government, describing how the contractor's Estimating system will be employed in preparing and supporting contractor price Proposals. The agreement may encompass such areas as proposal structure, requirements for Cost and Pricing Data, use of Forward Pricing Rate Agreements, pricing formulas, and identification and use of Data banks, etc. See also Pricing Rates.

PRICING ARRANGEMENT

An agreedto basis between contractual parties for the payment of amounts for specified performance. Usually expressed in terms of a specific costreimbursement or fixedprice type arrangement. See Contract Type.

PRICING CENTER

A segment of a company organizationally and functionally chartered to have separate Overhead accounts and its own overhead rates for use in negotiating and pricing contracts that it will perform.

PRICING GUIDELINES (OR INSTRUCTIONS)

Memos or documents containing Proposal plans, strategy, organization instructions, or Request For Proposal requirements. See Estimating Instructions.

PRICING PACKAGE

(OBSOLETE) An old term used in Proposals for a task or a group of tasks, as determined from the contract Statement of Work. Current proposals generally price work by Work Breakdown Structure tasks.

PRICING RATES

Rates negotiated with the resident Administrative Contracting Officer for use in Pricing new contract Proposals and follow on Business. Negotiations are normally conducted once each year, or whenever either party determines is appropriate. See also Forward Pricing Rate Agreements and Pricing Agreements.

PRIME CONTRACT

1) In the Commercial Marketplace, any contractor having full responsibility for the job. 2) For the Government, any Contract entered into with industry, directly by any military department or procuring activity of the Department of Defense.

PRIME CONTRACTOR

1) Any contractor who has a direct Contract with the Government. 2) A contractor having responsibility for the Design Control and delivery of a system or equipment, such as aircraft, engines, ships, tanks, vehicles, guns and missiles, ground communications and electronic systems, ground support equipment, and test equipment.

PRIME COST

The Cost of Direct Material and Direct Labor.

PRINCIPLE

A fundamental rule or law of action based upon desirable ends or Objectives. A principle is more basic than a Policy or a Procedure and generally governs both.

PRIVITY

The legal relationship between parties in a Contract.

PROBABILITY

The numerical expression of the likelihood or chance of occurrence of a given event. The term is often associated with results of repeated random Sampling. It is usually expressed as a proportion, which is determined by dividing the total number of items, values, or events of a specific type in a given group (or Universe) by the grand total of all possible types of items, values or events in the same group (or universe). For example, in a sample of 1,000 pieces there are 250 bolts, 700 nuts, and 50 washers. The probability that a piece selected at random is a washer is .05 (50 divided by 1,000), which is also referred to as the relative frequency expected to occur in the long run.

PROBABILITY OF ACCEPTANCE

That percentage of inspection Lots expected to be accepted, when the lots are subjected to a specific Sampling plan.

PROBABILITY OF INCURRING ESTIMATED COST (PIECOST)

A Computeraided procedure employing Parametric Cost Estimating techniques to Estimate and track contractors' Indirect Costs. It is used for setting the Government's Negotiation objective, in settling Forward Pricing agreements, and for analyzing Cost incurrence Trends.

PROBABILITY OF KILL (PK)

The Lethality of a weapon system, probability of kill usually refers to the statistical Probability that a weapon will detonate close enough to its Target, with enough Effectiveness, to disable the target.

PROCEDURE

1) A series of steps, or course of action. 2) The means or methods by which action shall be taken, consistent with applicable Principles. 3) A means of implementing Policy.

PROCESS

1) A system of operations in the production of something. 2) A series of actions, changes, or functions that bring about a particular result. 3) A planned series of actions or operations which advance to another. 4) A planned and controlled treatment that subjects materials to the influence of one or more types of energy for the time required to bring about the desired reactions or results. 5) The combination of people, equipment, materials, methods, and environment that produce output of a given product or service, a process can involve any aspect of a Business. A key tool for managing processes is Statistical Process Control.

PROCESS DOCUMENT

A document used as an Engineering or manufacturing release, to describe processing, sequencing, and inspection requirements for the manufacture or rework of individual parts or assemblies.

PROCESS LAYOUT

A method of a plant layout in which the machines, equipment, and areas for performing the same or similar operations are grouped together, or laid out by function.

PROCESS SHEET

A document, originating in manufacturing Engineering, and sent to the production floor, which describes and illustrates the methods and tools to be used in fabricating or assembling specific parts or subassemblies.

PROCESS SPECIFICATION

A statement of Engineering requirements, supplemental, but subordinate to, drawings or other Specifications, in which are delineated the means of manufacturing and the quality assurance Evaluation Criteria necessary to assure attainment of Engineering design. See Type D Specification.

PROCUREMENT

1) The obtaining of equipment, resources, property, or services by purchasing, renting, leasing, or other means. 2) The act of obtaining raw material, purchased parts and equipment, subcontract, and outside production items. 3) In the supply management sense, procurement may include the functions of Design, Standards determination, Specifications writing, selection of Suppliers, Funding, Contract Administration, and other related functions. 4) The act of buying goods and services for the Government. 5) A DoD Appropriations category.

PROCUREMENT ACTION

That point in time when the approved document requesting the initiation of a Procurement, and citing available Funds is forwarded to the Procuring Activity.

PROCUREMENT DATA PACKAGE

All documentation prepared expressly for the identification, description, and verification of items, materials, supplies, and services that are to be purchased, inspected, packaged, and supplied or delivered to users. See also Technical Data Package.

PROCUREMENT LEAD TIME

The interval in months between the initiation of a Procurement Action and the receipt into the supply system of the production model (excluded Prototypes) purchased as the result of such actions. Procurement lead time is composed of two Elements, Production Lead Time and Administrative Lead Time.

PROCUREMENT REQUEST

A document which describes the required Supplies or Services, so that a Procurement can be initiated. Also referred to as a Procurement Directive, this document, combined with Specifications, the Statement Of Work and the Contract Data Requirements List, is called the Procurement Request Package, and is the basis for Solicitation.

PROCUREMENT REQUIREMENT

1) The estimated requirement for an item or group of items, minus the quantity on hand and any quantity already on order. 2) A requirement set forth to provide guidelines or instructions for the Procurement process.

PROCUREMENT SCHEDULE

A display by Fiscal Year of the quantities of system peculiar major items or Components to be procured for a program.

PROCURING ACTIVITY

The activity which is assigned the responsibility for procuring or providing required supplies or services.

PROCURING AUTHORITY

The designated program or project manager, or such other Government official, responsible for the effective and economical Execution of a Procurement contract.

PROCURING CONTRACTING OFFICER (PCO)

The individual authorized to enter into contracts for supplies and services on behalf of the Government (either by Sealed Bidding or through Negotiation), and who is responsible for the overall Procurement contract. See also Contracting Officer.

PROCURING DEPARTMENT

Any military or company department, or subdivision thereof, which receives, accepts, and fulfills orders from another department or subdivision for the delivery from stock, manufacture, procurement of material, or performance of services.

PRODUCIBILITY

The ease of producing an item or system, producibility is governed by the Characteristics and features of a Design that enables economical fabrication, Assembly, inspection, and testing using available production technology.

PRODUCIBILITY ENGINEERING AND PLANNING (PEP)

Production Engineering tasks intended to ensure a smooth engineering Transition from Development into Production. PEP assures that an item can be produced in the required quantities, and in the specified timeframe, Efficiently and economically, and that the item will meet necessary performance objectives within its Design and specification Constraints. An essential part of all engineering design, PEP is intended to identify potential manufacturing problems and suggest Design and production changes or schedule trade-offs which would facilitate the production process.

PRODUCIBILITY REVIEW

A review of the Design of a specific hardware item or system to determine the relative ease of producing it using available Production technology and considering the Elements of fabrication, Assembly, inspection, and test.

PRODUCT(S)

1) Anything produced. 2) Any item proposed for sale by a company, as a part of their normal marketing or sales function. 3) The result of Research, Development, Test, and Evaluation, in terms of the hardware or software produced or manufactured. 4) An End Item. 5) The item stipulated in a contract to be delivered under the contract, whether that item is a service, study, hardware, or software, etc. 6) The result of multiplying two, or more, numbers together.

PRODUCT AREA

An area of a company's Business interest for which business plans are described and pursued.

PRODUCT ASSURANCE

A management discipline which assures that: (a) all Critical Activities are identified; (b) resources in the form of documented technology, Facilities, and qualified people are developed for each activity; and, (c) these resources are applied to each project to achieve customer requirements.

PRODUCT ASSURANCE PLAN

A management plan implementing a Product Assurance Program, which covers Reliability, Availability, Maintenance, Quality Assurance, and system assessments in order to ensure user satisfaction, mission and operational Effectiveness, and specified performance requirements.

PRODUCT (CONFIGURATION) BASELINE

The initially approved Product documentation describing: (a) all of the necessary functional and Physical Characteristics of the Configuration Item (CI); (b) any required joint and combined operations; (c) the elected functional and physical Characteristics designated for production Acceptance and testing; and, (d) all tests necessary for the Deployment and/or installation, support, training, and Disposal of the CI. The Baseline is established at the Physical Configuration Audit and normally includes product, process, and material specifications, Engineering drawings, and other related Data. See also Product Identification.

PRODUCT COST

The total Cost associated with the Production of a specific quantity of an item.

PRODUCT DEVELOPMENT

All task or project Costs incurred in conjunction with the application of scientific or technical knowledge in the Development of new products, product Components, processes, or improvements. Product development may be developed utilizing a company's own funds, funded by a customer, or a combination thereof.

PRODUCT EXPLORATION

A portion of the new Business acquisition Cycle directed toward investigating means of satisfying or identifying new product/program requirements for customers.

PRODUCT IMPROVEMENT

1) A system of management actions necessary for improving the Operational Characteristics and/or logistics supportability of a system/equipment. 2) Efforts to incorporate Configuration change involving the Engineering and testing of End Items and Depot repairable Components, or changes on other than developmental items to increase system or combat Effectiveness or extend useful military life. Product improvement usually results from feedback from the users.

PRODUCT IMPROVEMENT PROGRAM (PIP)

A program to incorporate a Configuration change involving Engineering and testing effort on major End Items and Depot repairable Components, or changes on other than developmental items to increase combat or System Effectiveness or extend the useful military life.

PRODUCT IMPROVEMENT PROPOSAL

A proposal of Configuration change to increase System Effectiveness or extend the useful life of a product.

PRODUCT (CONFIGURATION) IDENTIFICATION

The current approved technical documentation which defines the Configuration of a Configuration Item (CI) during the production, operation, maintenance, and support phases of its Life Cycle, and which describes the: (a) form, fit and function Characteristics of a CI; (b) selected Functional Characteristics selected for production acceptance testing; and, (c) production Acceptance Tests. See also Product Baseline.

PRODUCT LIABILITY INSURANCE

The purchase of protection against liabilities resulting from product usage.

PRODUCT LINE

A subdivision of the assigned product area, normally a major division in the product mission or function.

PRODUCT MANAGEMENT

The management functions necessary to produce a Product.

PRODUCT MANUFACTURING BREAKDOWN

A Breakdown of a Product's physical description into demands for specific types of manufacturing Capability. This breakdown establishes the Baseline for the determination of the types of personnel and manufacturing Facilities which will be required to produce the product. It can also serve as the basis for establishing the time requirements for the individual manufacturing operations involved in developing required schedule relationships.

PRODUCT ORGANIZATION

An Organizational structure with multiple products, and with individual product managers reporting ultimately to one head.

PRODUCT SPECIFICATION

A Specification for a Configuration Item, below the system level, which states the item's Characteristics in a manner suitable for Procurement, Production, and Acceptance. See Type C Specification.

PRODUCTION

1) The process of converting raw materials by fabrication into required material. Production also includes the functions of production scheduling, inspection, Quality Control, and related processes. 2) The processes and procedures designed to transform a set of input Elements into a specified output element. 3) Work done to produce the hardware or End Items of a contract requiring manufacturing effort. 4) A term used to describe the manufacture of hardware and systems after a Development phase has been completed.

PRODUCTION ACCEPTANCE TEST AND EVALUATION (PAT&E)

The Test and Evaluation of early production items to demonstrate that the items procured fulfill the requirements and specifications of the contract.

PRODUCTION AND DEPLOYMENT

Normally, the fourth phase in the Acquisition Life Cycle following Milestone III. In this phase, primary and support systems are procured and produced, operational units are trained, and systems are deployed.

PRODUCTION ARTICLE

The End Item under initial or full rate production.

PRODUCTION BUILDUP TIME

The time interval between the date of the production of the first article, through the period of BuildUp, until the production has achieved an expected level rate.

PRODUCTION CAPACITY REVIEW

A review of a contractor's currently available and planned availability of production resources to determine the resources which could be committed to a proposed program and the expected Facility utilization level.

PRODUCTION CENTER

The area containing the machine or machines operated by workers, as well as the space required for the storage of materials at the machine and for loading and unloading it.

PRODUCTION CONTROL

The procedure of planning, routing, scheduling, dispatching, and expediting the flow of materials, parts, subassemblies, and assemblies within the plant from the initial or raw state to the finished product in an orderly and Efficient manner.

PRODUCTION ENGINEERING

The application of Design and Analysis techniques to produce a specified Product. Included in production Engineering are the functions of: (a) planning, specifying, and coordinating the application of required resources; (b) performing analyses of Producibility and production operations, processes, and systems; (c) applying new manufacturing methods, tooling, and equipment; (d) controlling the introduction of engineering changes; and, (e) employing Cost Control techniques.

PRODUCTION ENGINEERING STUDY

A study made for every new item or system to determine whether the item can be produced economically, to the specified drawing dimensions and tolerances with conventional machine tool equipment, and within the limits of the Cost Estimate. The study will indicate corrective action to be taken on the drawings and other technical documents to assure a practical and feasible manufacturing process.

PRODUCTION EQUIPMENT

Those items of Plant Equipment located within a manufacturing, processing, Assembly, or service establishment, and used for cutting, grinding, shaping, forming, drilling, joining, measuring, testing, heating, or treating production materials, or work in process.

PRODUCTION EQUIPMENT MAINTENANCE

The task of inspecting, servicing, and adjusting Production Equipment to achieve minimum interruption of the manufacturing flow.

PRODUCTION FEASIBILITY

The likelihood that a system Design concept can be produced using existing production technology, while simultaneously meeting quality, production rate, and Cost requirements.

PRODUCTION FEASIBILITY REVIEW

A review of a System Design Concept to Estimate the likelihood that the concept can be produced using existing production technology, while simultaneously meeting quality, production rate, and Cost requirements.

PRODUCTION LEAD TIME

The time interval between the placement of a contract and the receipt into the supply system of the items purchased.

PRODUCTION LINE BALANCING

The balancing of a Production Line so that the rate of materials which flow through all the work stations is as nearly uniform as practicable.

PRODUCTION MANAGEMENT

The effective use of resources to produce, on-schedule, the required number of End Items that meet specified quality, performance, and Cost requirements. Production Management includes, but is not limited to, Industrial Resource Analysis, producibility assessment, producibility Engineering and planning, Production Engineering, industrial preparedness planning, post production planning, and Productivity Enhancement.

PRODUCTION MANAGEMENT TECHNIQUES

The techniques utilized by the contractor to determine the progress of the production program.

PRODUCTION PLAN

The plan which describes the employment of the manufacturing resources to produce the required products or systems, on time, and within Cost Constraints.

PRODUCTION PLAN REVIEW

A review conducted to approve or disapprove a contractor prepared and submitted Production Plan.

PRODUCTION PLANNING

The broad range of activities initiated early in the Acquisition process, and continued through a Production decision, to ensure an orderly Transition from Development to a Cost effective rate production or construction.

PRODUCTION PROVEOUT

A technical test conducted prior to production testing, with Prototype hardware, to determine the most appropriate Design alternative. This testing may also provide Data on safety, the achieveability of critical system technical Characteristics, refinement and ruggedization of hardware Configurations, and determination of technical risks.

PRODUCTION QUALIFICATION TEST (PQT)

A technical test conducted after Milestone III to ensure the Effectiveness of the manufacturing process, equipment, and procedures. This testing also serves the purpose of providing Data for the independent Evaluation required for material release, so that the evaluator can address the Adequacy of the material with respect to the stated requirements. These tests are conducted on a number of Samples taken at random from the first production Lot, and are repeated if the process or Design is changed significantly, and when a second or alternative source is brought on line.

PRODUCTION RATE

The maximum number of End Items produced in a given time period, such as a month or year (e.g., 100 missiles per month).

PRODUCTION READINESS

The state or condition of preparedness of a system program to proceed into Production. A system is ready for production when the competence and Producibility of the production Design, and the managerial and physical preparations necessary for initiating and sustaining a viable production effort have progressed to the point where a production Commitment can be made without incurring unacceptable risks that will breach Thresholds of schedule, performance, Cost, or other established criteria.

PRODUCTION READINESS REVIEW (PRR)

A formal review of a program to determine if the Design is ready for Production, Production Engineering problems have been resolved, and the producer has accomplished adequate planning for the production phase. The PRR is performed near the end of the Engineering and Manufacturing Development phase of a program.

PRODUCTION SCHEDULES

Chronological controls used by management to regulate Efficiently and economically the operational sequences of Production.

PRODUCTIVE LABOR

All direct manufacturing labor involved in the Production of a Product.

PRODUCTIVITY

1) The actual rate of output or Production per unit of time worked. 2) The state of yielding results, Benefits, or profits.

PRODUCTIVITY ENHANCEMENT

The use of contract incentives and other techniques to provide the environmental motivation and management Commitment to increase production efficiencies. See Enhancement.

PROFIT

Generally characterized as the basic motive of Business enterprise, profit is the excess of the revenues from sales of goods or services over the related Cost thereof in a given transaction or over a given period of time. The term profit is used in Fixed Price Contracts, while the term Fee is used in Cost Type Contracts.

PROFIT CEILING

The contractual maximum Profit, usually expressed as a percentage of contract Target Cost.

PROFIT CENTER

The smallest organizationally independent segment of a company, which has been charged by management with Profit and loss responsibilities, and whose operations must, therefore, absorb its Indirect Costs.

PROFIT FLOOR

The contractual minimum Profit, usually expressed as a percentage of contract Target Cost.

PROFIT OBJECTIVE

1) A major goal of a company's sales effort, the Profit objective is usually the maximum achievable difference between revenues from sales and the Cost of sales. 2) In Negotiations and Procurement, that part of the estimated contract price that the customer and contractor try to negotiate as being the appropriate profit for the procurement at hand.

PROFITABILITY ACCOUNTING

An Accounting System designed to report the profitability of individual product lines within a given division or group.

PROGRAM

1) A plan of action designed for the accomplishment of a definite objective which is specific as to the work to be accomplished, the time-phasing of the work to be done, and the means proposed for its accomplishment, particularly in quantitative terms, with respect to labor, material, and Facilities requirements. 2) A DoD Acquisition Program. 3) To schedule Funds to meet requirements and plans. 4) A major, independent part of a software system. See Computer Program. 5) A combination of Program Elements designed to express the accomplishment of a definite objective or plan.

PROGRAM ANALYSIS

1) The detailed Examination of a Program to determine its requirements and its feasibility as indicated by available resources. 2) The review of a program to determine and summarize technical, schedule, and Cost history.

PROGRAM ACQUISITION COST

The Estimated Cost of the Research, Development, Test, and Evaluation (RDT&E), Procurement, and system specific Military Construction (MILCON) necessary to acquire a defense system. RDT&E Costs are accumulated from the point in time when the DoD Acquisition Program is designated by title as a Program Element or major project within a program Element. MILCON costs include only those projects that directly support and are uniquely identified with the system.

PROGRAM ACQUISITION QUANTITY

The total number of fully configured End Items that a DoD Component intends to Buy through the life of the Program. This quantity may extend beyond the Future Years Defense Program years, but must be consistent with the current approved program.

PROGRAM BUDGET DECISION

Secretary of Defense decision documents which affirm or change dollar amounts or manpower allowances in the service Budget Estimate Submissions.

PROGRAM CONTROL

The management disciplines and techniques to maintain schedule, Data and documentation, technical, and Cost status on a Program.

PROGRAM COST

The Cost of all the Elements in the entire Work Breakdown Structure, including all Appropriations, and encompassing all contractor and Government Cost Elements for the complete program. The program cost usually excludes Sunk Costs prior to program goahead, program deactivation costs, and Operating and Support Costs, unless specified by program ground rules.

PROGRAM COST CATEGORIES

Appropriations. There are five major Program cost categories: (a) Research, Development, Test, and Evaluation (RDT&E) appropriations fund the efforts performed by contractors and Government activities, including the procurement of End Items, materials, and services required for the Development of equipment, material, and Computer application software, and developmental and Initial Operational Test and Evaluation. RDT&E also funds the operation of dedicated R&D installations; (b) Procurement appropriations fund those Acquisition Programs that have been approved for Production, and all Costs integral and necessary to deliver a useful end item intended for operational use or inventory upon delivery; (c) Operations and Maintenance (O&M) appropriations fund Expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, Depot Level Maintenance, stock funds, and base operations support; d) Military Personnel appropriations fund the costs of salaries and other compensation for active and retired military personnel, and reserve forces based on end strength; and, (e) Military Construction appropriations fund major projects such as bases, schools, missile storage Facilities, maintenance facilities, medical/dental clinics, libraries, and military family housing.

PROGRAM COST REPORTING

Reporting requirements prescribed in DoD instructions, which provide for comparable Program Costs, and related Data on research and Development activities and hardware items for use in program Cost Validation, progress, and status Analysis.

PROGRAM DECISION MEMORANDUM (PDM)

A memorandum documenting the Secretary of Defense's approval of Military Department or Defense Agency Program Objective Memorandum, with tentative specific guidance. The PDM is issued in July, every two years, during the biennial Planning, Programming, and Budgeting System process.

PROGRAM DEFINITION DATA

The information and Data used as the basis for preparing technical, management, and Cost Proposals. It defines the program content, schedules, statement of work, equipment items, quantities, Make or Buy relationships, and the scope of a program or product.

PROGRAM ELEMENT

1) A description of a Mission by the identification of the organizational entities and resources needed to perform the assigned mission. 2) A Breakout of the Future Years Defense Program (FYDP), the program Element is the basic building block of the FYDP. The 11 major force programs are subdivided into program elements, which are defined as "an integrated combination of men, equipment and Facilities which together constitute an identifiable military Capability or support activity". The program element identifies the mission to be undertaken and the organizational entities required to perform the mission. Elements may consist of forces, manpower, materials, services, and/or associated Costs as applicable, and are designated by a seven digit number ending with a letter indicating appropriate service.

PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)

1) A management technique designed for the planning and controlling of complex industries and defense projects, PERT is utilized by constructing a network model of the integrated activities and events in a program or task, and periodically evaluating the time/cost implications as work progresses. A management tool requiring an Estimate of the expected time to complete each activity, a PERT Chart displays the interrelationship among tasks on a project, provides information to highlight trouble areas, and allows an evaluator to determine the Critical Path of events for the project. 2) A particular Governmentdesigned critical path scheduling model, which originally employed the usage of three time estimates for each activity, the term PERT is now often used to include all network based schedule models.

PROGRAM EXECUTIVE OFFICER (PEO)

A military or civilian official who has primary responsibility for directing several Acquisition Category I, and some assigned acquisition category II, III, and IV programs.

PROGRAM INSTABILITY

The condition imposed on a program by problems resulting from changes in requirements, technology, and/or funding.

PROGRAM MANAGEMENT

1) The process of defining, planning, directing, and controlling the combined efforts of the company functions and all subcontractors and suppliers to accomplish program objectives. 2) The organization responsible for this process. 3) For the Government, the process whereby a single leader and team are responsible for the planning, organizing, coordinating, directing, and controlling of all the combined efforts of participating/assigned civilian and military personnel and organizations for the accomplishment of Program objectives. A special management approach used to provide centralized authority and responsibility for the management of defense Acquisition Programs, program management provides a single point of contact for directing the system through Development, production and Deployment.

PROGRAM MANAGEMENT DIRECTIVE (PMD)

The official management document used to provide direction to the implementing and participating commands, the PMD is utilized during the entire Acquisition Life Cycle to state requirements, and request studies, as well as to initiate, approve, change, transition, modify, or terminate programs.

PROGRAM MANAGEMENT PLAN (PMP)

The document, developed and issued by the Program Manager, which shows the integrated time-phased actions and resources required to complete the Program.

PROGRAM MANAGER (PM)

1) The individual designated the responsibility for managing a Program. 2) For the Government, the official responsible for managing a specific Acquisition Program, who reports to and receives direction from either a Program Executive Officer or a Component Acquisition Executive. The Program Manager is often also referred to as the Project Manager or Program Director. The PM is a leader and manager, who understands the requirements, environment, organizations, activities, Constraints, and motivations impacting the program. The PM is knowledgeable of, and understands how to operate within, the constraints imposed by the requirements generation system, the Acquisition Management system, and the Planning, Programming, and Budgeting System. The PM coordinates the work of defense industry contractors, Consultants, in-house engineers, logisticians, contracting officers, and others, whether assigned directly to the program office or supporting it from a functional matrix.

PROGRAM MANAGER'S CHARTER

The authority provided to the Program Manager to conduct the Program within the Cost, schedule, and performance Constraints approved by the decision authority. The Charter establishes manpower resources for the program office and includes the assignment of personnel to perform the functions of technical management, Systems Engineering, logistics, business and financial management, as well as the designation of a contracting officer. It also defines the PM's line of authority and reporting channels.

PROGRAM OBJECTIVE MEMORANDUM (POM)

A biennial memorandum in prescribed format submitted to the Secretary of Defense in April by the DoD Component heads, which recommends the total resource requirements and programs within the parameters of the Secretary's fiscal guidance. A major document in the Planning, Programming, and Budgeting System, the POM ultimately becomes the service's Budget Estimate Submission. The POM is the principal programming document which details how a Service Agency proposes to respond to assignments in the Defense Planning Guidance, and satisfy its assigned functions in the Future Years Defense Program. The POM presents programming needs for 2 years hence (i.e., in Fiscal Year 1992, the POM for 1994-1999 is submitted), including manpower, force levels, procurement, Facilities, personnel issues, and research and Development requirements.

PROGRAM OFFICE

1) The office organized by the Program Manager to assist him in accomplishing the program tasks. In the Government, the program office is often referred to as the Systems Program Office (SPO).

PROGRAM RATES

Those actual and projected Direct Labor and Overhead rates, which are based upon (or derived from) accumulations of charges to labor accounts for contracts in a particular Program.

PROGRAM REVIEW

A periodic review held by the Program Manager to review Program status (technical, manufacturing, financial, and/or contractual) with the customer and/or company management.

PROGRAM YEAR

A single Fiscal Year in the Future Years Defense Program.

PROGRAMMATIC

Pertaining to the Cost, schedule, and performance Characteristics of a specific Program.

PROGRAMMING

1) The projection of activities to be accomplished, and the resources that will be required, for all specified periods in the future. 2) The second part of the Planning, Programming, and Budgeting System, programming follows the planning process. 3) The process of preparing a Program, especially in terms of identifying quantitative and physical requirements of manpower, materiel, and Facilities. 4) The process of establishing and maintaining a program. 5) The scheduling of funds to meet requirements and plans. 6) Preparing Computer routines and software required for the operation of computers.

PROGRESS PAYMENTS

1) Payments made to a Prime Contractor, during the life of a Fixed Price Contract, on the basis of a percentage of his incurred total Cost or total Direct Labor and material cost. 2) Payments made to a contractor as work progresses on a procurement, rather than at the completion of a contract or an End Item. The amounts are usually based upon actual Expenditures and work performed at a particular stage of completion, or are a predetermined value based on the completion of certain milestones.

PROJECT

1) Synonymous with Program in general usage. 2) A planned undertaking having a finite beginning and ending, involving definition, Development, production, and logistics support of a major weapon or weapon support system or systems. A project may be the whole or a part of a program.

PROJECT BASE

The contractual basis for Project operations. More than one contract and more than one customer may be involved in the project base.

PROJECT BUDGET

An Operating Cost amount provided for the Elements of a Project.

PROJECT COST REPORT (PCR)

A recurring report of incurred and forecasted work, by a given work order or series of work orders under a contract. Included in the report are Direct Labor, Direct Material, and Overhead costs, and comparisons to estimated or actual contract values for these same Costs.

PROJECT DEFINITION

The process of exploring more thoroughly all aspects of proposed Projects, and to examine the relationship between required performance, Development time, and Cost. The areas of technical uncertainty are examined and possible trade offs are evolved in order to achieve a satisfactory balance among performance, development time, and cost.

PROMISSORY NOTE

A written promise to pay on demand, or at a fixed or determined future time, a certain sum of money to, or to the order of, a specified person, or the bearer of the note.

PROOF OF PRINCIPLE (POP)

Technical demonstrations and troop experimentation conducted with Brassboard Configurations, subsystems, or surrogate systems, using troops in a realistic field environment. The process examines the organization and operational concept, and provides Data to improve requirements and Evaluation Criteria. The results of the POP serve as the basis for the decision whether or not to enter the Engineering and Manufacturing Development phase.

PROPERTY

1) Anything which may be owned. 2) As used in the military establishment, the term is usually confined to tangible property, including real estate, tooling, equipment, and material.

PROPERTY ACCOUNT

A formal record of Property and property transactions.

PROPERTY ADMINISTRATOR

The Government representative responsible for Government Property in the possession of a contractor.

PROPOSAL

A solicited or unsolicited offer to provide goods or services. Proposals usually consist of technical, management, and Cost Proposals, plus a model contract. In addition a separate executive summary document is also included in most major proposals.

PROPOSAL EVALUATION

The process of formal review, Evaluation, and Analysis of Proposals submitted in response to specific Request For Proposal or Bid specifications, with the purpose of Awarding a contract.

PROPOSAL INSTRUCTIONS

A section in the Request For Proposal which specifies the format and content of the technical, management, and Cost Proposals.

PROPOSAL TEAM

A group of persons organized specifically for the purpose of preparing a Proposal.

PROPRIETARY

1) Exclusively owned. 2) Private.

PROPRIETARY DATA

Data or documents which contain technical or Business information developed and controlled by a company and critical to sales, product growth, or business operations. See also Proprietary Rights.

PROPRIETARY RIGHTS

A broad contractor term used to describe Data belonging to the contractor. This data could be intellectual property, financial data, or technical documentation, etc. This is not a category accepted by the Government when referencing Technical Data. See also Proprietary Data.

PROSPECTIVE PRICING

A Pricing decision made in advance of performance of work, and based on the Analysis of comparative prices, Cost Estimates, past Costs, or combinations of such considerations.

PRORATE

To divide, assess or distribute proportionally.

PROTEST

A concern over the Award of a contract, submitted to the Procuring Contracting Officer or other Government officials.

PROTOTYPE

An original or model of a final product that is subject to full service test, and on which a later item is formed or based. The only changes between the prototype model and the production model will be those found to be necessary during testing.

PROVISIONING

The process of determining and acquiring the range and quantity (depth) of spares and repair parts, and support and test equipment required to operate and maintain an End Item of material for an initial period of service. The term usually refers to the first outfitting of a unit or system. See also Initial Provisioning.

PROVISIONING CONFERENCE

A meeting of the Government's Provisioning team and contractor's representatives for the purpose of establishing the Government's maintenance requirements for the End Items on contract.

PROVISIONING PARTS LIST (PPL)

A formatted listing which includes the End Item and reflects all assemblies, subassemblies, and detail parts thereof, that can be removed without destruction of the part to which they are attached.

PURCHASE DISCOUNT

A reduction in sales prices offered to buyers for certain conditions, such as favorable payments or Cash, quantity Buys, items for resale, or early deliveries, etc. See Discount, Cash Discount, and Trade Discount.

PURCHASE ORDER

1) An executed document authorizing a supplier to deliver materials or equipment, or to perform services, which, upon acceptance, constitutes a purchase contract. 2) A contractual procurement document used primarily to procure supplies and nonpersonal services, when the Aggregate amount involved in any one transaction is relatively small (generally, not exceeding $l0,000).

PURCHASE REQUEST

A document prepared by a requirements office stating the requirement in quantities and delivery dates for material or services and authorizing the procurement office to proceed with acquisition of the material or services.

PURCHASED LABOR

1) The Labor services obtained from a supplier for the fabrication and/or processing of hardware, when the material is furnished by the buyer. 2) The hiring of any type of labor from another firm where the output is not a manufactured product, such as technical services.

PURCHASED PARTS

Standard Commercial Items fabricated by other than the prime contractor, and parts, Components, and assemblies produced by others, but not to the prime contractor's unique design.

PURCHASES

1) Any items which are bought. 2) The total Cost of goods received during a fiscal period. 3) The amount of Products procured by a Purchase Order.