The requirements definition in a tender or grants application document should focus on the operational objectives, purpose and desired outcomes. This ensures that the expression of the requirements does not constrain respondents from submitting viable alternative proposals or taking advantage of the opportunities for innovative and resource efficient solutions. The definition of functional requirements should be based on ‘what' is to be achieved and not ‘how' it is to be achieved. A requirements definition by PSI will set out the performance parameters by specifying details of operating inputs and required outputs, but not the methods to be used to achieve the latter. Within the procurement and grants application management field, a well structured and documented definition of requirements is critical as it serves to underpin further activities in the life-cycle including: statements of requirement (specifications etc); evaluation methodologies; selection processes; negotiation strategies, and performance management.