Glossary - N

Needs Analysis

The result of detailed research into underlying market demand (or acceptance) for the particular goods or services. Source: D1

Negotiated Bids

Principals negotiate with a single contractor to achieve a desired outcome, sometimes after the receipt of bids. Source: S2

Negotiation of a Bid

The negotiation of a contract with one or more biders following the close of bids. Often where there is no conforming bid or no acceptable price bid. The conditions for, and conduct of, bid negotiations form part of the Code of Biding. (AS/NZS 4120). Source: S2

Net Present Cost

The discounted present cost of the flow of all expenses including capital outlay over the evaluation period for the asset, building or component under consideration. Source: N1

Net Present Value (NPV)

The sum of the present values of all benefits (including residual value, if any) minus the sum of all the present values of all costs. A positive NPV is a criterion for proceeding with a project or program, although risk and other factors from other decision support tools need to be considered. Normally used where benefits are likely to exceed costs. Source: A4

NPV per $ of Initial Capital Outlay (NPVI)

This factor is arrived at by dividing the NPV by the present value of the initial capital outlay. It is the decision criterion to use when choosing between projects or programs where capital funds are limited. Source: A4

Non-Asset Solutions

A means of satisfying changes or increases in demand for the services of an agency other than by the physical addition to assets held by the agency. Non-asset solutions can include such things as changes in the methods of delivery of services including outsourced service provision and the use of price mechanisms. Source: P1

Non-Current Physical Assets

Any tangible asset, administered or controlled by a public sector entity, that would not, in the ordinary course of operations, be consumed or converted into cash within the current financial year. The term includes assets normally classified as property, plant and equipment and infrastructure. Source: T2

Non-Traditional Contract System

Bids are called before the design is fully developed and documented. Source: A4