A – C
The first section of our glossary covers foundational terms you will encounter in nearly every solicitation and registration process.
- 8(a) Business Development Program — An SBA program for small disadvantaged businesses that provides access to sole-source and set-aside contracts, mentoring, and business development assistance over a nine-year period.
- Acquisition — The process by which the federal government obtains supplies, services, or construction through purchase or lease. Governed by the FAR and agency-specific supplements.
- Award — The formal decision by a contracting officer to grant a contract to a specific offeror after evaluating proposals or bids.
- BAA (Broad Agency Announcement) — A competitive solicitation used to obtain proposals for basic and applied research. Common at DoD, DARPA, and scientific agencies.
- Best Value — An evaluation approach where the government considers factors beyond price, such as technical capability, past performance, and management approach, to select the offer most advantageous to the government.
- BPA (Blanket Purchase Agreement) — A simplified acquisition method for filling anticipated repetitive needs for supplies or services. Establishes charge accounts with qualified sources.
- CAGE Code (Commercial and Government Entity Code) — A five-character alphanumeric identifier assigned to entities that do business with the federal government. Required for SAM.gov registration.
- CCR (Central Contractor Registration) — The former registration database for government contractors, now replaced by SAM.gov. Legacy references still appear in older solicitations.
- COR (Contracting Officer’s Representative) — A government employee designated by the contracting officer to monitor contractor performance and serve as the technical liaison during contract execution.
- CO / KO (Contracting Officer) — The government official with authority to enter into, administer, and terminate contracts. The only person who can legally bind the government.
- CPARS (Contractor Performance Assessment Reporting System) — The government’s system for recording contractor past performance evaluations. Ratings directly affect your ability to win future contracts.
- CUI (Controlled Unclassified Information) — Government-created or -owned information that requires safeguarding controls but is not classified. Handling requirements are specified in NIST SP 800-171.
- Competitive Range — The subset of proposals that have a reasonable chance of award after initial evaluation. Only offerors in the competitive range participate in discussions.
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D – F
Terms in this range cover key regulatory frameworks, registration identifiers, and procurement databases.
- D&B (Dun & Bradstreet) — The commercial entity that formerly issued DUNS numbers for contractor identification. The DUNS number has been replaced by the UEI in SAM.gov.
- DCAA (Defense Contract Audit Agency) — The DoD agency responsible for auditing contractor accounting systems, incurred costs, and forward pricing proposals.
- DFARS (Defense Federal Acquisition Regulation Supplement) — The DoD-specific supplement to the FAR. Contains additional rules and clauses that apply to all defense procurements.
- DPAS (Defense Priorities and Allocations System) — A system that requires contractors to give priority to defense-related orders. Priority ratings (DO and DX) appear on some defense contracts.
- DUNS Number — A nine-digit identifier formerly assigned by Dun & Bradstreet to businesses. Replaced by the Unique Entity Identifier (UEI) in April 2022.
- EO (Executive Order) — A directive issued by the President that manages operations of the federal government. Can impact contracting requirements such as minimum wage, cybersecurity, and reporting.
- ERA (Electronic Resale Activity) — Transactions conducted through the GSA Advantage online shopping platform for products on GSA Schedules.
- FAR (Federal Acquisition Regulation) — The primary set of rules governing the federal acquisition process. Found in Title 48 of the Code of Federal Regulations. Every government contractor must understand FAR fundamentals.
- FASA (Federal Acquisition Streamlining Act) — Legislation that simplified government procurement procedures and raised the simplified acquisition threshold.
- FPDS (Federal Procurement Data System) — The central repository of federal contracting data. Records all contract actions above the micro-purchase threshold. Available at FPDS.gov for competitive intelligence research.
- FSS (Federal Supply Schedule) — See GSA Schedule. Pre-negotiated contract vehicles that allow agencies to purchase commercial products and services at volume-discounted prices.
- Full and Open Competition — A procurement where any responsible source may submit a proposal. No restrictions based on business size or socioeconomic status.
- FOB (Free on Board) — A shipping term indicating the point at which title and risk of loss transfer from the seller to the buyer. Common in supply contracts.
G – I
This section covers major contract vehicles, socioeconomic programs, and common procurement structures.
- GAO (Government Accountability Office) — The independent agency that investigates how the federal government spends taxpayer dollars. Also handles bid protests from contractors who believe a procurement was conducted improperly.
- GFE / GFP (Government-Furnished Equipment / Property) — Equipment or property owned by the government and provided to a contractor for use during contract performance.
- GSAR (General Services Acquisition Regulation) — GSA’s supplement to the FAR, containing rules specific to GSA procurements and schedules.
- GSA Schedule (General Services Administration Schedule) — Long-term, government-wide contracts with commercial firms that provide federal agencies access to millions of commercial products and services at pre-negotiated prices and terms.
- GWA (Government-Wide Acquisition) — Contract vehicles available for use by multiple federal agencies, such as GSA Schedules and GWACs.
- GWAC (Government-Wide Acquisition Contract) — A multi-agency, indefinite-delivery contract for IT products and services. Examples include Alliant 2, 8(a) STARS III, and VETS 2.
- HUBZone (Historically Underutilized Business Zone) — An SBA program for small businesses located in economically distressed areas. Provides access to set-aside contracts and a 10% price evaluation preference.
- IAE (Integrated Award Environment) — The collection of government systems that support the federal award process, including SAM.gov, FPDS, CPARS, and FAPIIS.
- IDIQ (Indefinite Delivery / Indefinite Quantity) — A contract type that provides for an indefinite quantity of supplies or services during a fixed period. Work is ordered through individual task or delivery orders.
- IFB (Invitation for Bids) — A solicitation method used in sealed bidding where award is made to the lowest responsive, responsible bidder. Price is the primary evaluation factor.
- IGCE (Independent Government Cost Estimate) — The government’s internal estimate of the cost to fulfill a requirement. Used to evaluate the reasonableness of contractor proposals.
- ISO (International Organization for Standardization) — Quality management standards (e.g., ISO 9001) that some solicitations require contractors to hold as evidence of quality systems.
- ITAR (International Traffic in Arms Regulations) — Regulations controlling the export of defense-related articles and services. Relevant for defense contractors handling controlled technologies.
J – L
Key terms covering procurement officials, evaluation criteria, and acquisition thresholds.
- J&A (Justification and Approval) — A document required when a contracting officer plans to award a contract without full and open competition. Must justify why competition is limited.
- JV (Joint Venture) — A business arrangement where two or more firms combine resources to pursue a specific contract opportunity. Common in mentor-protégé relationships and when meeting size or capability requirements.
- KO (Contracting Officer) — See CO. The authorized government official who can bind the government to a contract. Never take direction from anyone other than the KO or designated COR.
- Key Personnel — Individuals identified in a proposal or contract whose qualifications and experience are critical to contract performance. Replacement typically requires government approval.
- LPTA (Lowest Price Technically Acceptable) — An evaluation method where proposals meeting all technical requirements are ranked solely by price. The lowest-priced technically acceptable proposal wins.
- Labor Category (LCAT) — A defined role in a services contract with specified qualifications, experience levels, and billing rates. Common in time-and-materials and labor-hour contracts.
- Letter Contract — A preliminary contract authorizing the contractor to begin work immediately, with the understanding that a definitive contract will be negotiated later. Used when urgency prevents normal procedures.
- Liquidated Damages — A predetermined amount specified in the contract that the contractor must pay for each day of delay beyond the delivery date. Common in construction and time-critical procurements.
- LPTAP (Lowest Price Technically Acceptable Process) — The full evaluation process used in LPTA procurements, from establishing technical acceptability criteria through price evaluation.
- Lot — A grouping of items in a solicitation that must be bid on as a unit. Multi-lot solicitations may allow bidders to bid on individual lots or all lots.
- Line Item (CLIN / SLIN) — Contract Line Item Number or Sub-Line Item Number. A distinct item of supply or service in a contract, each with its own description, quantity, and price.
- Lowest Responsive Bidder — In sealed bidding (IFB), the bidder who offers the lowest price and whose bid conforms to all material terms and conditions of the solicitation.
M – O
Terms covering procurement methodologies, business programs, and major contract vehicles.
- MAC (Multiple Award Contract) — A contract vehicle where multiple contractors are awarded positions. Task orders are competed among the awardees, creating a smaller competitive pool.
- Mentor-Protégé Program — An SBA or DoD program that pairs experienced large businesses (mentors) with small businesses (protégés) to build capacity through joint ventures, training, and subcontracting.
- Micro-Purchase Threshold — The dollar threshold below which purchases can be made without competitive bidding. Currently $10,000 for most purchases ($2,000 for construction).
- MAS (Multiple Award Schedule) — See GSA Schedule. The program through which GSA awards long-term contracts for commercial products and services.
- MOD (Contract Modification) — A written change to an existing contract. Can be bilateral (agreed by both parties) or unilateral (issued by the government under specific authority).
- NAICS Code (North American Industry Classification System) — A six-digit code that classifies businesses by industry type. Every solicitation includes a primary NAICS code, which also determines the applicable small business size standard.
- NDA (Non-Disclosure Agreement) — A contract between parties agreeing not to disclose confidential information. May be required before the government shares sensitive requirements details.
- OASIS (One Acquisition Solution for Integrated Services) — A government-wide, multi-agency contract vehicle for professional services. OASIS+ is the current generation, managed by GSA.
- OCI (Organizational Conflict of Interest) — A situation where a contractor’s existing relationships or access to information could give it an unfair competitive advantage or impair its objectivity.
- OFPP (Office of Federal Procurement Policy) — The office within OMB that provides government-wide procurement policy direction and oversight.
- Option Year — A period beyond the base contract year that the government may exercise at its discretion. Typical structure is a one-year base plus four one-year option periods.
- Organizational Experience — The demonstrated ability of a company to perform work similar to the solicitation requirements. Evaluated through past performance references and contract examples.
- OTA (Other Transaction Authority) — A flexible contracting mechanism used primarily by DoD that is not subject to FAR requirements. Used for prototyping and research projects.
P – R
This section covers proposal-related terms, performance evaluation, and key solicitation documents.
- Past Performance — A contractor’s record of previous contract work, including quality, timeliness, cost control, and customer satisfaction. One of the most heavily weighted evaluation factors in best-value procurements.
- PO (Purchase Order) — A simplified contract form used for purchases below the simplified acquisition threshold. Requires less documentation than a formal contract.
- PPIRS (Past Performance Information Retrieval System) — The former system for retrieving contractor past performance data. Now integrated into CPARS.
- Privity of Contract — The direct contractual relationship between the government and the prime contractor. Subcontractors do not have privity with the government.
- Proposal — A contractor’s formal response to a solicitation, including technical approach, management plan, past performance references, and price/cost data.
- PSC (Product Service Code) — A four-character code used to describe the type of product or service being procured. Used alongside NAICS codes to classify federal spending.
- PWS (Performance Work Statement) — A statement of work that describes requirements in terms of measurable outcomes and results rather than specific processes. Preferred over SOW in performance-based contracts.
- RFI (Request for Information) — A market research tool used by the government to gather information about capabilities, industry practices, and potential sources. Not a solicitation and does not commit the government to any action.
- RFP (Request for Proposal) — A solicitation document used in negotiated procurements. Proposals are evaluated on multiple factors and the government may conduct discussions before making an award.
- RFQ (Request for Quotation) — A solicitation document used for simplified acquisitions or GSA Schedule purchases. Generally less formal than an RFP.
- Responsibility Determination — The contracting officer’s assessment of whether a prospective contractor is capable of performing the contract. Considers financial resources, performance record, and organizational capability.
- RSAOM (Reserved for Small and All Other Microenterprises) — A less common set-aside type indicating the procurement is restricted to very small businesses meeting specific revenue criteria.
- Rule of Two — The standard contracting officers use to determine if a procurement should be set aside for small businesses. Requires a reasonable expectation that at least two small businesses will submit competitive offers.
S – U
Critical terms including the main procurement platform, business designations, and contract terminology.
- SAM.gov (System for Award Management) — The official government website for entity registration, contract opportunities, wage determinations, and federal assistance listings. Registration is required to do business with the federal government.
- SAT (Simplified Acquisition Threshold) — The dollar threshold below which simplified acquisition procedures may be used. Currently $250,000 for most procurements.
- SBA (Small Business Administration) — The federal agency responsible for supporting small businesses, managing set-aside programs (8(a), HUBZone, WOSB, SDVOSB), and setting size standards.
- SBIR (Small Business Innovation Research) — A competitive program that encourages small businesses to engage in federal R&D with commercial potential. Provides phased funding from feasibility through commercialization.
- SDVOSB (Service-Disabled Veteran-Owned Small Business) — A small business owned and controlled by one or more service-disabled veterans. Eligible for sole-source and set-aside contracts through the VA and other agencies.
- Set-Aside — A procurement restricted to a specific category of small businesses. Types include total small business, 8(a), HUBZone, SDVOSB, WOSB, and EDWOSB set-asides.
- SIN (Special Item Number) — A category within a GSA Schedule contract that identifies the specific products or services a contractor is authorized to sell.
- SOW (Statement of Work) — A document that describes the specific tasks, deliverables, and performance standards required under a contract. Defines what the contractor must do.
- Sole Source — A contract awarded to a single contractor without competition. Requires a J&A unless conducted under specific small business authorities (e.g., 8(a) sole source).
- STTR (Small Business Technology Transfer) — Similar to SBIR but requires the small business to partner with a nonprofit research institution. Focuses on technology transfer and commercialization.
- T4C (Termination for Convenience) — The government’s right to end a contract at any time when it is in the government’s best interest. The contractor is entitled to payment for work performed and reasonable termination costs.
- T4D (Termination for Default) — The government’s right to end a contract when the contractor fails to perform. The contractor may be liable for excess reprocurement costs and is not entitled to profit on unperformed work.
- UEI (Unique Entity Identifier) — A 12-character alphanumeric code assigned through SAM.gov that replaced the DUNS number as the primary entity identifier for federal contracting.
V – Z
The final section covers veteran programs, women-owned business designations, and additional procurement terms.
- VA (Department of Veterans Affairs) — The federal agency that administers the Veterans First Contracting Program, giving procurement preferences to VOSBs and SDVOSBs.
- Value Engineering — A systematic process to analyze contract requirements and identify modifications that reduce cost while maintaining essential performance, quality, and reliability.
- VETS 2 (Veterans Technology Services 2) — A GSA GWAC restricted to SDVOSB firms for IT professional services. Provides streamlined access to federal IT contracts.
- VOSB (Veteran-Owned Small Business) — A small business owned and controlled by one or more veterans. Receives procurement preferences at the VA and some competitive advantages at other agencies.
- Wage Determination — A Department of Labor determination specifying minimum wages and fringe benefits that must be paid to workers on government service contracts (per the Service Contract Act) or construction contracts (per the Davis-Bacon Act).
- Warranty — A contractor’s guarantee regarding the quality, fitness, or performance of supplies or services provided under a contract. Terms are specified in the contract clauses.
- WOSB (Women-Owned Small Business) — A small business at least 51% owned and controlled by one or more women. Eligible for WOSB and EDWOSB (Economically Disadvantaged Women-Owned Small Business) set-aside contracts.
- Work Breakdown Structure (WBS) — A hierarchical decomposition of the total scope of work into manageable components. Used in proposals and project management to organize deliverables.
- Year (Base Year / Option Year) — The time periods of a contract. The base year is the initial performance period; option years are additional periods the government may exercise.
- Zone Pricing — A pricing structure where different rates apply based on geographic zones. Common in transportation, delivery, and field service contracts.
- 8(a) Sole Source — A contract awarded directly to an 8(a) participant without competition, allowed for contracts up to $5.5 million (services) or $8.5 million (manufacturing).
- 802 Data (Section 802) — Refers to cybersecurity and supply chain requirements under Section 802 of the FY2020 NDAA, requiring contractors to report cybersecurity incidents.
Keep Learning the Language
Federal contracting has a steep vocabulary curve, but fluency pays off. Understanding these terms helps you read solicitations faster, write stronger proposals, and communicate confidently with contracting officers. As you encounter new terms in your contracting journey, refer back to this glossary and remember that every experienced contractor started exactly where you are now.
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