Government Contracting Glossary

8(a) Program

SBA business development program for disadvantaged small businesses.

AbilityOne

Program for employing people who are blind or have severe disabilities.

Active Registration

A current, non-expired SAM.gov registration that allows bidding on contracts.

Affiliation

Related business entities counted together for size determination.

Agency-Level Protest

Bid protest filed directly with the contracting agency rather than GAO or COFC.

Allowable Cost

Cost that can be charged to or reimbursed under a government contract.

Amendment

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.

Authorized 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.

Award Fee

Additional compensation paid to contractors based on performance evaluation.

Award Without Discussions

Contract award based on initial proposals without negotiations when solicitation permits.

Banking Verification

Validation of bank account information for electronic payment of contract invoices.

Base 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.

Bid 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.

CAGE Code(Commercial and Government Entity Code)

Commercial and Government Entity Code - a 5-character identifier for suppliers to the government.

CAS(Cost Accounting Standards)

Cost Accounting Standards are government-mandated rules for how contractors must account for costs on federal contracts.

Ceiling 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.

Davis-Bacon Act

Federal law requiring contractors to pay prevailing wages on federally funded construction projects.

DBA/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.

Debarment

Exclusion of a contractor from government contracting for a specified period due to misconduct.

Debriefing

Post-award meeting where the government explains evaluation results to unsuccessful offerors.

EAR(Export Administration Regulations)

Export Administration Regulations control dual-use items that have both commercial and military applications.

EDWOSB(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.

Entity 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.

FAR(Federal Acquisition Regulation)

The Federal Acquisition Regulation is the primary set of rules governing federal government procurement.

FedRAMP(Federal Risk and Authorization Management Program)

Federal Risk and Authorization Management Program standardizes cloud security assessment for government use.

FFP(Firm Fixed Price)

Firm Fixed Price - contract where price doesn't change regardless of costs.

Final Proposal Revision

Updated proposal submitted after discussions providing offeror's final offer for evaluation.

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.

GSA Schedule

Long-term contract allowing sales to all federal agencies.

GWAC(Government-Wide Acquisition Contract)

Government-Wide Acquisition Contract - multi-agency IT contract vehicle.

HUBZone(Historically Underutilized Business Zone)

Historically Underutilized Business Zone program.

IDIQ(Indefinite Delivery/Indefinite Quantity)

Indefinite Delivery/Indefinite Quantity - umbrella contract for task orders.

IFB(Invitation for Bid)

Invitation for Bid - sealed bidding where lowest price wins.

Incentive Fee

Variable fee tied to contractor achievement of specific cost, schedule, or performance targets.

Incurred Cost

Actual costs recorded under a contract.

Indirect Costs

Costs not directly attributable to a specific contract.

Joint Venture

Partnership between companies for specific contracting opportunities.

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.

Mentor-Protégé

Program pairing experienced contractors with small businesses.

Micro-Purchase

Purchases under $10,000 not requiring competition.

Minimum 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.

NAICS Code(North American Industry Classification System)

North American Industry Classification System code identifying business industry.

NHO(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.

Notarized 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.

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.

ODCs(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.

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.

POA&M(Plan of Action and Milestones)

Plan of Action and Milestones tracks remediation of security control deficiencies.

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.

Retainage

Percentage withheld from payments until contract completion.

RFI(Request for Information)

Request for Information - market research before a formal solicitation.

RFP

SAM Entity

A registered business or organization in the System for Award Management.

SAM.gov(System for Award Management)

System for Award Management - the official federal government system for contractor registration.

SAT(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.

TAA(Trade Agreements Act)

Trade Agreements Act governs procurement of foreign products and determines which countries qualify for federal contracts.

Task 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.

UEI(Unique Entity Identifier)

Unique Entity Identifier - a 12-character alphanumeric ID assigned to businesses through SAM.gov.

Unallowable Cost

Cost that cannot be charged to government contracts.

VOSB(Veteran-Owned Small Business)

Veteran-Owned Small Business.

WAWF(Wide Area WorkFlow)

Wide Area WorkFlow - DoD electronic invoicing system.

WOSB(Women-Owned Small Business)

Women-Owned Small Business eligible for certain set-asides.

Wrap Rate

Fully loaded labor rate including all indirect costs and profit.