Government Contracting Glossary
155 terms and definitions to help you understand federal procurement terminology.
881 term
AA12 terms
AbilityOne
Program for employing people who are blind or have severe disabilities.
Official sourceActive Registration
A current, non-expired SAM.gov registration that allows bidding on contracts.
Affiliation
Related business entities counted together for size determination.
Official sourceAgency-Level Protest
Bid protest filed directly with the contracting agency rather than GAO or COFC.
Official sourceAllowable Cost
Cost that can be charged to or reimbursed under a government contract.
Official sourceAmendment
Official change to a solicitation issued by the contracting officer.
ANC(Alaska Native Corporation)
Alaska Native Corporation eligible for special contracting preferences.
ATO(Authority to Operate)
Authority to Operate is formal authorization for an IT system to process government data.
Official sourceAuthorized Representative
Person designated to manage a company's SAM.gov registration.
Award
The government's acceptance of a proposal and creation of a binding contract.
Official sourceAward Fee
Additional compensation paid to contractors based on performance evaluation.
Official sourceAward Without Discussions
Contract award based on initial proposals without negotiations when solicitation permits.
Official sourceBB8 terms
Banking Verification
Validation of bank account information for electronic payment of contract invoices.
Official sourceBase Year
Initial mandatory period of a contract before option years.
Best Value
Procurement approach selecting the offer providing greatest overall benefit considering price and non-price factors.
Official sourceBid Bond
Guarantee that winning bidder will accept the contract.
BOA(Basic Ordering Agreement)
Basic Ordering Agreement - terms and conditions for future orders.
BPA(Blanket Purchase Agreement)
Blanket Purchase Agreement - simplified ordering arrangement for recurring needs.
Official sourceBurden Rate
Multiplier applied to direct labor costs to cover indirect expenses and profit.
Official sourceBuy American Act
Law requiring federal agencies to prefer domestic end products and construction materials in procurement.
Official sourceCC14 terms
CAGE Code(Commercial and Government Entity Code)
Commercial and Government Entity Code - a 5-character identifier for suppliers to the government.
Official sourceCAS(Cost Accounting Standards)
Cost Accounting Standards are government-mandated rules for how contractors must account for costs on federal contracts.
Official sourceCeiling Value
Maximum dollar amount that can be obligated under a contract.
CLIN(Contract Line Item Number)
Contract Line Item Number - separately priced contract element.
CMMC(Cybersecurity Maturity Model Certification)
Cybersecurity Maturity Model Certification is DOD's framework for assessing contractor cybersecurity practices.
Official sourceCOFC Protest
Bid protest filed in the U.S. Court of Federal Claims with binding judicial authority.
Official sourceCompetitive Range
Offerors whose proposals have a reasonable chance of being selected for award after initial evaluation.
Official sourceCorrective Action
Steps taken by an agency to remedy a procurement defect, often in response to a protest.
Official sourceCost Analysis
Government review of contractor cost elements to determine if proposed costs are reasonable.
Official sourceCost-Plus
Contract reimbursing actual costs plus a fee.
Official sourceCost Realism
Evaluation of whether proposed costs are realistic for the work.
CPARS(Contractor Performance Assessment Reporting System)
Contractor Performance Assessment Reporting System.
Official sourceCUI(Controlled Unclassified Information)
Controlled Unclassified Information requiring safeguarding but not classified under Executive Order 13526.
Official sourceCure Notice
Government notice giving contractor time to fix performance problems.
DD10 terms
Davis-Bacon Act
Federal law requiring contractors to pay prevailing wages on federally funded construction projects.
Official sourceDBA/Trade Name(Doing Business As)
"Doing Business As" - an alternate name under which a company operates.
DCAA(Defense Contract Audit Agency)
Defense Contract Audit Agency - audits defense contractor costs.
Official sourceDebarment
Exclusion of a contractor from government contracting for a specified period due to misconduct.
Official sourceDebriefing
Post-award meeting where the government explains evaluation results to unsuccessful offerors.
Official sourceDelivery Order
Order for products placed against an existing contract.
DFARS(Defense Federal Acquisition Regulation Supplement)
Defense Federal Acquisition Regulation Supplement contains DOD-specific procurement rules beyond the FAR.
Official sourceDirect Costs
Costs specifically identifiable to a particular contract.
Discussions
Negotiations between the government and offerors to improve proposals in the competitive range.
Official sourceDUNS Number(Data Universal Numbering System)
Former 9-digit business identifier replaced by UEI in April 2022.
EE5 terms
EAR(Export Administration Regulations)
Export Administration Regulations control dual-use items that have both commercial and military applications.
Official sourceEDWOSB(Economically Disadvantaged Women-Owned Small Business)
Economically Disadvantaged Women-Owned Small Business.
EIN(Employer Identification Number)
Employer Identification Number - a 9-digit tax ID assigned by the IRS.
Official sourceEntity Validation Service(Entity Validation Service)
EVS - the IRS-based system that validates business information in SAM.gov.
Evaluation Criteria
Factors used to evaluate and score proposals.
FF8 terms
FAR(Federal Acquisition Regulation)
The Federal Acquisition Regulation is the primary set of rules governing federal government procurement.
Official sourceFedRAMP(Federal Risk and Authorization Management Program)
Federal Risk and Authorization Management Program standardizes cloud security assessment for government use.
Official sourceFFP(Firm Fixed Price)
Firm Fixed Price - contract where price doesn't change regardless of costs.
Official sourceFinal Proposal Revision
Updated proposal submitted after discussions providing offeror's final offer for evaluation.
Official sourceFinal Rate
Audited indirect cost rate based on actual costs incurred.
FISMA(Federal Information Security Modernization Act)
Federal Information Security Modernization Act requires agencies to secure federal information systems.
Official sourceForward Pricing Rate
Agreed-upon indirect cost rates used for estimating costs on proposals and contracts.
Official sourceFunded Value
Amount of money actually obligated and available to spend.
GG4 terms
G&A(General and Administrative)
General and Administrative expenses allocated across all contracts.
GAO Protest
Formal challenge to a procurement decision filed with the Government Accountability Office.
Official sourceGSA Schedule
Long-term contract allowing sales to all federal agencies.
Official sourceGWAC(Government-Wide Acquisition Contract)
Government-Wide Acquisition Contract - multi-agency IT contract vehicle.
II7 terms
IDIQ(Indefinite Delivery/Indefinite Quantity)
Indefinite Delivery/Indefinite Quantity - umbrella contract for task orders.
Official sourceIFB(Invitation for Bid)
Invitation for Bid - sealed bidding where lowest price wins.
Official sourceIncentive Fee
Variable fee tied to contractor achievement of specific cost, schedule, or performance targets.
Official sourceIncurred Cost
Actual costs recorded under a contract.
Indirect Costs
Costs not directly attributable to a specific contract.
Invoice
Bill submitted by contractor for payment.
ITAR(International Traffic in Arms Regulations)
International Traffic in Arms Regulations control the export of defense articles and services.
Official sourceLL5 terms
Labor Categories
Defined skill levels and qualifications for contract personnel.
Labor Hour
Contract paying only for labor time without materials.
Legal Business Name
The official name of a business as registered with the IRS and state authorities.
Liquidated Damages
Pre-determined daily penalty for late delivery.
LPTA(Lowest Price Technically Acceptable)
Lowest Price Technically Acceptable is an evaluation method where the lowest-priced acceptable offer wins.
Official sourceMM5 terms
Mentor-Protégé
Program pairing experienced contractors with small businesses.
Official sourceMicro-Purchase
Purchases under $10,000 not requiring competition.
Official sourceMinimum Guarantee
Minimum amount the government commits to ordering under IDIQ contracts.
Modification
Written change to an existing contract.
MPIN(Marketing Partner Identification Number)
Marketing Partner Identification Number - credential for SAM.gov access.
NN6 terms
NAICS Code(North American Industry Classification System)
North American Industry Classification System code identifying business industry.
Official sourceNHO(Native Hawaiian Organization)
Native Hawaiian Organization eligible for contracting preferences.
NIST 800-171
NIST cybersecurity framework with 110 security controls for protecting CUI in contractor systems.
Official sourceNotarized Letter
Legal document sometimes required to verify business authority in SAM.gov.
Notice of Award
Official notification to a contractor that they have been selected for contract award.
Official sourceNotice to Proceed(Notice to Proceed)
Authorization to begin work on a contract.
OO5 terms
Obligation
Legal commitment of funds for a specific contract purpose.
OCI(Organizational Conflict of Interest)
Organizational Conflict of Interest occurs when a contractor's work creates an unfair competitive advantage.
Official sourceODCs(Other Direct Costs)
Other Direct Costs - direct costs that aren't labor or materials.
Option Year
Additional contract period the government may exercise at their discretion.
Overhead
Indirect costs related to production or service delivery.
PP17 terms
Past Performance
Record of contractor's performance on previous contracts.
Payment Bond
Guarantee that contractor will pay subcontractors and suppliers.
Performance Bond
Guarantee that contractor will complete the contract.
Period of Performance
Time frame during which contract work must be completed.
Physical Address Validation
Verification that a contractor's business address is valid and matches official records.
Official sourcePOA&M(Plan of Action and Milestones)
Plan of Action and Milestones tracks remediation of security control deficiencies.
Official sourcePost-Award Protest
Challenge to contract award decision filed after the government selects a winner.
Official sourcePPQ(Past Performance Questionnaire)
Past Performance Questionnaire sent to references.
Pre-Award Protest
Challenge to solicitation terms or agency actions filed before contract award.
Official sourcePrice Analysis
Evaluation of proposed prices compared to benchmarks to determine reasonableness.
Official sourcePrice Reasonableness
Determination that proposed price is fair for what's being purchased.
Primary NAICS
The main NAICS code representing a company's primary business activity.
Progress Payment
Interim payments to contractors based on costs incurred or percentage of work completed.
Official sourcePrompt Payment
Requirement for government to pay invoices within 30 days.
Official sourceProvisional Rate
Temporary indirect cost rate used until final rates are determined.
PSC Code(Product Service Code)
Product Service Code - 4-character code identifying products or services.
PWS(Performance Work Statement)
Performance Work Statement - defines outcomes rather than specific tasks.
RR8 terms
Recertification
Process of re-verifying small business status.
Registration Renewal
Annual update required to maintain active SAM.gov status.
Reps and Certs
Representations and Certifications - legal statements about business status.
Responsibility Determination
Assessment by contracting officers that a contractor can perform contract requirements satisfactorily.
Official sourceRetainage
Percentage withheld from payments until contract completion.
RFI(Request for Information)
Request for Information - market research before a formal solicitation.
RFP(Request for Proposal)
Request for Proposal - solicitation for complex requirements evaluating technical merit and price.
Official sourceRFQ(Request for Quote)
Request for Quote - solicitation for commercial items with simpler evaluation.
SS25 terms
SAM Entity
A registered business or organization in the System for Award Management.
Official sourceSAM.gov(System for Award Management)
System for Award Management - the official federal government system for contractor registration.
Official sourceSAT(Simplified Acquisition Threshold)
Simplified Acquisition Threshold - $250,000 ceiling for simplified procedures.
SBA Verification
Official SBA review and approval of certain small business certifications.
SDVOSB(Service-Disabled Veteran-Owned Small Business)
Service-Disabled Veteran-Owned Small Business.
Official sourceSection 508
Federal law requiring electronic and information technology to be accessible to people with disabilities.
Official sourceSection L
Instructions to Offerors - how to prepare and submit your proposal.
Section M
Evaluation Factors - how proposals will be evaluated and scored.
Self-Certification
Declaring small business status without third-party verification.
Set-Aside
Contract reserved exclusively for specific small business categories.
Show Cause
Notice requiring contractor to explain why contract shouldn't be terminated.
Simplified Acquisition
Streamlined procurement for purchases under $250,000.
Size Standard
SBA threshold for qualifying as small business in an industry.
Official sourceSmall Business
Business meeting SBA size standards for its industry.
Small Disadvantaged Business(SDB)
Small business owned by socially and economically disadvantaged individuals.
Sole Source
Contract awarded without competition to a single contractor.
Official sourceSolicitation
Formal government request for contractors to submit offers.
SOO(Statement of Objectives)
Statement of Objectives - high-level outcomes without detailed requirements.
Sources Sought
Notice asking potential contractors to identify themselves for an upcoming requirement.
SOW(Statement of Work)
Statement of Work - detailed description of tasks and deliverables.
Stay of Performance
Suspension of contract performance when a timely protest is filed.
Official sourceSubcontract
Contract between prime contractor and another contractor.
Suspension
Temporary exclusion of a contractor from government contracting pending investigation.
Official sourceSynopsis
Public notice of a planned or current procurement opportunity.
System Security Plan
Document describing security controls implemented to protect an information system.
Official sourceTT7 terms
TAA(Trade Agreements Act)
Trade Agreements Act governs procurement of foreign products and determines which countries qualify for federal contracts.
Official sourceTask Order
Order for services placed against an existing contract like IDIQ.
Termination for Convenience
Government ending contract for its own reasons.
Termination for Default
Government ending contract due to contractor failure.
TIN(Taxpayer Identification Number)
Taxpayer Identification Number - general term for tax IDs including EIN and SSN.
T&M(Time and Materials)
Time and Materials - payment based on labor hours and materials used.
Official sourceTribally-Owned
Business owned by an Indian Tribe with special contracting benefits.
