Master the terminology of federal procurement. 53+ terms explained in plain language to help you navigate government contracting.
SBA's Business Development Program for small disadvantaged businesses. The 8(a) program provides business development assistance and access to sole-source and set-aside contracts for qualifying businesses owned by socially and economically disadvantaged individuals.
An evaluation approach that considers factors beyond price, such as technical excellence and past performance. Allows agencies to make tradeoffs between price and non-price factors.
Blanket Purchase Agreement - A simplified method of filling anticipated repetitive needs for supplies or services. BPAs establish charge accounts with qualified sources of supply.
Commercial and Government Entity Code - A 5-character alphanumeric identifier assigned by the Defense Logistics Agency (DLA) to entities doing business with the federal government. Required for all government contractors.
Cybersecurity Maturity Model Certification - A DoD framework requiring defense contractors to meet specific cybersecurity requirements based on the sensitivity of data they handle. CMMC has three levels of certification.
The government official with authority to enter into, administer, and terminate contracts. The CO is the only person who can make binding commitments on behalf of the government.
Contracting Officer's Representative - A government employee designated by the contracting officer to monitor contract performance. CORs provide technical direction but cannot make contractual changes.
A contract type where the government reimburses the contractor's allowable costs plus an additional amount for fee or profit. Common for R&D where costs are uncertain.
Contractor Performance Assessment Reporting System - The government database where contracting officers record evaluations of contractor performance. CPARS ratings follow contractors and affect future awards.
Controlled Unclassified Information - Government-created or owned information that requires safeguarding but is not classified. Contractors handling CUI must comply with NIST 800-171 requirements.
Defense Federal Acquisition Regulation Supplement - Additional acquisition regulations specific to Department of Defense procurements. DFARS implements FAR policies and provides DoD-specific requirements.
Data Universal Numbering System - A unique 9-digit identifier previously required for federal contracting. Replaced by the UEI (Unique Entity Identifier) in April 2022 but may still be referenced in older contracts.
Economically Disadvantaged Women-Owned Small Business - A WOSB that also meets SBA economic disadvantage thresholds. EDWOSBs are eligible for additional set-aside opportunities.
Federal Acquisition Regulation - The primary set of rules governing the federal government's procurement process. The FAR covers everything from competition requirements to contract administration.
A contract type where the price is not subject to adjustment based on contractor cost experience. The contractor bears full responsibility for all costs and resulting profit or loss.
Federal Procurement Data System - The authoritative database of federal contract actions. FPDS data is used for market research, competition analysis, and identifying agency spending patterns.
General Services Administration Multiple Award Schedule - Pre-negotiated contracts with commercial firms for goods and services at volume discount pricing. GSA Schedules streamline federal procurement.
Government-Wide Acquisition Contract - A pre-competed, multiple-award contract for IT products and services available to all federal agencies. Examples include CIO-SP3, Alliant 2, and STARS III.
Historically Underutilized Business Zone - An SBA program that helps small businesses in distressed areas gain preferential access to federal procurement opportunities. HUBZone certified firms can receive sole-source contracts up to $4 million.
Indefinite Delivery/Indefinite Quantity - A contract vehicle that provides for an indefinite quantity of supplies or services during a fixed period. Work is ordered through task orders or delivery orders issued against the base contract.
A formal business arrangement where two or more companies create a new entity to pursue contracts. Joint ventures can be particularly beneficial under SBA mentor-protégé relationships.
Lowest Price Technically Acceptable - An evaluation approach where award goes to the lowest-priced proposal that meets minimum technical requirements. Price is the determining factor.
An SBA program that encourages established businesses (mentors) to provide business development assistance to small disadvantaged businesses (protégés). Allows joint venture arrangements that share past performance.
Currently $10,000 - The threshold below which agencies can make purchases without competitive bidding. For construction, the micro-purchase threshold is $2,000.
A written change to a contract's terms. Modifications can add scope, extend periods of performance, adjust pricing, or make administrative changes.
North American Industry Classification System Code - A 6-digit code that classifies business establishments by their primary type of economic activity. NAICS codes are used to determine small business size standards and match contractors with relevant opportunities.
NIST Special Publication 800-171 - Security requirements for protecting Controlled Unclassified Information (CUI) in non-federal systems. Forms the basis for CMMC Level 2 certification.
A record of a contractor's performance on previous contracts, used by agencies to assess the likelihood of successful performance. One of the most important evaluation factors in federal procurement.
The contractor that holds the contract directly with the government. The prime is responsible for overall contract performance and management of any subcontractors.
Product Service Code - A 4-character code used to describe products, services, and research & development purchased by the federal government. PSC codes help categorize what is being procured.
Performance Work Statement - A statement of work that describes required results rather than how to achieve them. Gives contractors flexibility in approach while holding them accountable for outcomes.
Request for Information - A market research tool used by agencies to gather information about capabilities, pricing, or industry practices before issuing a formal solicitation. RFIs are not solicitations and do not commit the government to any procurement.
Request for Proposal - A formal solicitation asking contractors to submit detailed proposals including technical approach, management plan, and pricing. RFPs are used for complex procurements where evaluation factors beyond price are important.
Request for Quote - A solicitation asking contractors to provide pricing for specific goods or services. RFQs are typically used for simpler, commercial-type procurements where price is the primary evaluation factor.
System for Award Management - The official U.S. government system where businesses must register to do business with the federal government. SAM.gov is the authoritative source for federal contract opportunities and contractor registration.
Service-Disabled Veteran-Owned Small Business - A small business at least 51% owned and controlled by one or more service-disabled veterans. SDVOSBs are eligible for set-aside contracts and sole-source awards.
A contract reserved exclusively for a specific category of businesses, such as small businesses or businesses in socioeconomic programs (8(a), HUBZone, SDVOSB, WOSB). Set-asides limit competition to qualifying firms.
Currently $250,000 - The dollar threshold below which simplified acquisition procedures may be used. Procurements below the SAT have reduced competition and documentation requirements.
Criteria established by the SBA that define the maximum size a business can be to qualify as a small business for federal contracting purposes. Size standards vary by NAICS code and may be based on annual revenue or number of employees.
A notice issued by agencies to identify potential contractors and assess market capabilities before issuing a solicitation. Responses help agencies determine appropriate set-asides and competition strategies.
Statement of Work - A document that describes the specific tasks, deliverables, and timelines required under a contract. Used primarily for service contracts.
Supplier Performance Risk System - A DoD system that tracks contractor cybersecurity assessment scores based on NIST 800-171 compliance. Required for DoD contracts involving CUI.
A plan required on contracts over $750,000 describing how the prime contractor will provide subcontracting opportunities to small businesses. Must include goals by socioeconomic category.
A contractor that provides goods or services to the prime contractor rather than directly to the government. Subcontractors have no direct contractual relationship with the government.
A notice published on SAM.gov announcing an upcoming procurement opportunity. Synopses provide basic information about requirements and give contractors advance notice of opportunities.
An order placed against an existing indefinite-delivery contract (like an IDIQ or BPA) for specific work. Task orders define scope, period, and funding for discrete projects.
An arrangement between two or more companies to pursue a contract opportunity together. Typically specifies roles, responsibilities, and workshare percentages.
The section of a proposal that describes the contractor's technical approach, methodology, and solution for meeting the government's requirements. Often the most heavily weighted evaluation factor.
A contract type where payment is based on direct labor hours at specified hourly rates plus actual cost of materials. Requires close government monitoring due to cost risk.
Unique Entity Identifier - A 12-character alphanumeric ID assigned by SAM.gov that uniquely identifies your business for federal contracting purposes. The UEI replaced the DUNS number in April 2022.
The official source for spending data for the U.S. government. Provides detailed information on federal contracts, grants, and other awards.
Wide Area Workflow - The Department of Defense's electronic invoicing system. Contractors submit invoices through WAWF for payment on DoD contracts.
Women-Owned Small Business - A small business at least 51% owned and controlled by one or more women. WOSBs are eligible for set-aside contracts in industries where women-owned businesses are underrepresented.
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