Within the City’s version of PeopleSoft, NIGP codes will be used. This will allow greater flexibility with reporting, assisting with analysis on all procurement activities.
The NIGP Commodity/Services Code is an acronym for the National Institute of Governmental Purchasing’s' Commodity/Services Code. The NIGP Code is a coding taxonomy used primarily to classify products and services procured by state and local governments in North America.
The NIGP Code is most commonly used to classify vendors and to track spending data for use in strategic sourcing and spending analysis. The database is often incorporated into the procurement software utilized by the entity for use in e-procurement. Categorization, reporting, and transparency are all key goals and benefits of this coding structure.
NIGP Code structure
3-Digit Class Code
The 3-Digit class Code has a brief general description. This level contains 219 Commodity (Product) Classes and 55 Service Classes totaling 274 Classes. The 3-Digit Code is primarily used to generate periodic expenditure history by department for fiscal planning, budget execution, and accounting.
5-Digit Class-Item Code
The 5-Digit class-item Code is an expanded version of the 3-Digit class Code. Currently, it contains over 8,700 descriptions. This level categorizes vendors by class-item to allow your procurement software to automate bidder selection, produce no-bid response reports, vendor performance reports, and minority business and HUB reports by Code. Purchase history can be captured at this level as well.
7-Digit Class-Item-Group Code
The 7-Digit Code provides an additional level of purchase description. It contains over 29,000 descriptions. It can be used to develop a specification file and is used with the 11-Digit Code to create a comprehensive purchase description.