NIGP Commodity and Services Codes, when used with suitable procurement software, make public procurement programs more efficient. This taxonomy has now become the standard coding system used to classify products and services in more than 30 states in the United States, as well as a significant number of local bodies in North America.
Agencies use NIGP Codes for different purposes, which include, but do not limit to:
NIGP codes follow a structured 3-digit, 5-digit, 7-digit, and 11-digit hierarchical system.
Periscope Holdings, Inc. was appointed by NIGP as the NIGP Code’s custodian in 2001. Headquartered in Austin, Texas, this firm is responsible for licensing, publishing releases of new versions, overseeing requests for code changes, training, communicating with end users, providing phone support, as well as offering commodity coding services.
The development of this classification system was the result of efforts put in by public procurement officials from different states in the U.S., some of which included Texas, Florida, Illinois, and Oklahoma. The movement was spearheaded by Homer Forrestor, the then Director of General Services in Texas.
The initial codeset was produced in 1983. The copyright was transferred to NIGP and it released the code’s first version in 1984. Now, the NIGP Code has over 1,400 government users.
Here are a few examples of 11-digit NIGP Codes.
The first three digits refer to the class (Furniture: Office).
The second set of two digits denotes the class-item (Desks and tables, wood).
The third set of two digits identifies the class-item-group (Tables, wood, conference, contemporary, laminated plastic top, paneled-leg style).
The last four digits, with the code in its entirety, refer to a unique class-item-group-detail. The examples in question are for the following products.