Reference
Glossary of federal contracting terms
Plain definitions of the terms you will meet in notices, award records, and quality clauses. One or two sentences each, no jargon to explain the jargon.
Terms
| Term | Meaning |
|---|---|
| SAM.gov | The federal System for Award Management, run by GSA. It is where your company registers to receive federal awards and where agencies post most contract opportunities. |
| UEI | Unique Entity ID. A twelve-character identifier that SAM.gov assigns to a registered entity. It replaced the DUNS number in April 2022. |
| CAGE code | Commercial and Government Entity code. A five-character code that DLA assigns to a facility at a specific address during SAM registration. Award records and DIBBS use it. |
| DUNS (legacy) | The nine-digit Data Universal Numbering System number issued by Dun and Bradstreet. No longer required for federal registration, but older award records still carry it. |
| NAICS | North American Industry Classification System. A six-digit code that describes a line of business. The NAICS on a solicitation sets the small business size standard for that buy. |
| PSC | Product or Service Code. A four-character code that describes what is being bought. Codes that start with a digit are products; codes that start with a letter are services. |
| FSC | Federal Supply Classification. The four-digit product groups that make up the product half of the PSC list. An FSC is also the first four digits of a national stock number. |
| set-aside | A buy that only a defined group of businesses may compete for, such as small businesses or firms in a specific SBA program. |
| total small business set-aside | A buy reserved entirely for small businesses under the size standard of its NAICS code. Common for parts and small repair work. |
| 8(a) | The SBA business development program for small firms owned by socially and economically disadvantaged people. Buys can be set aside for, or sole sourced to, 8(a) firms. |
| HUBZone | An SBA program for small firms located in historically underutilized business zones with a share of employees who live in those zones. Certified firms qualify for HUBZone set-asides. |
| SDVOSB | Service-Disabled Veteran-Owned Small Business. Certified through SBA. Eligible for SDVOSB set-asides and, in some cases, sole-source awards. |
| WOSB | Woman-Owned Small Business. Certified through SBA. Eligible for WOSB set-asides in NAICS codes where SBA has found women-owned firms underrepresented. |
| EDWOSB | Economically Disadvantaged Woman-Owned Small Business. A WOSB whose owners also meet SBA economic limits. Eligible for a wider set of set-asides than WOSB alone. |
| sole source | An award made without competition because only one source can meet the need, or under a program that allows it. Above certain thresholds it needs a written justification. |
| full and open competition | A buy any responsible source may compete for. The default when no set-aside or exception applies. |
| sources sought | A notice asking which firms could do the work, often to decide whether a buy can be set aside. It is not a solicitation. Responding is how you help shape the buy. |
| RFI | Request for Information. Market research; the agency wants input on its plans, not a price. |
| RFQ | Request for Quotation. The agency asks for a quote, usually under simplified acquisition. Your quote is not a binding offer; the government's order is. |
| RFP | Request for Proposal. A negotiated procurement. You submit a proposal that is evaluated on price and other stated factors, and the agency may hold discussions. |
| IFB | Invitation for Bid. Sealed bidding. Bids are opened publicly and award goes to the lowest-priced responsive, responsible bidder. |
| presolicitation | A notice that a solicitation is coming. It gives you time to prepare before the solicitation and its deadline post. |
| combined synopsis and solicitation | A single notice that announces and issues the solicitation at the same time. Common for commercial items and simplified buys; deadlines tend to be short. |
| award notice | A notice posted after award that names the winner and the amount. |
| special notice | A catch-all notice type for industry days, announcements, and other information that is not a solicitation. |
| amendment | A change to a solicitation after it posts. You usually must acknowledge each amendment in your offer or your offer can be rejected. |
| solicitation number | The identifier the buyer assigns to a solicitation. It is not the same as the contract number that follows award. |
| PIID | Procurement Instrument Identifier. The contract, order, or agreement number that appears on the award and in the contract record. |
| IDV | Indefinite Delivery Vehicle. The umbrella agreement, such as an IDIQ, BPA, BOA, or GSA schedule, under which orders are placed. |
| IDIQ | Indefinite Delivery, Indefinite Quantity contract. It sets terms, a guaranteed minimum, and a ceiling. The agency places orders as needs arise during the ordering period. |
| BPA | Blanket Purchase Agreement. A charge-account style arrangement for repeat small buys. It is not a contract until a call is placed against it. |
| BOA | Basic Ordering Agreement. A written agreement on terms and pricing methods for future orders. Each order placed under it is a separate contract. |
| task order | An order for services placed under an IDV. |
| delivery order | An order for supplies placed under an IDV. |
| purchase order | A simplified acquisition award, usually a stand-alone buy below the simplified acquisition threshold. Many DLA part buys are purchase orders. |
| GSA schedule (MAS) | The Multiple Award Schedule run by GSA. A long-term, governmentwide vehicle with pre-negotiated terms that agencies can order from. |
| FAR | Federal Acquisition Regulation. The rulebook for federal buying, published at acquisition.gov. |
| DFARS | Defense Federal Acquisition Regulation Supplement. The Department of Defense's additions to the FAR. |
| DFARS 252.204-7012 | The clause on safeguarding covered defense information and reporting cyber incidents. It requires contractors to implement NIST SP 800-171 and flows down to subcontractors. |
| NIST SP 800-171 | The security requirements for protecting controlled unclassified information on nonfederal systems. The basis for both DFARS 252.204-7012 and CMMC. |
| CMMC | Cybersecurity Maturity Model Certification. The DoD program that verifies contractors meet the required NIST SP 800-171 practices. It is being phased into DoD contracts. |
| ITAR | International Traffic in Arms Regulations. State Department rules that control defense articles, services, and technical data on the United States Munitions List. |
| EAR | Export Administration Regulations. Commerce Department rules that control dual-use items and some military items on the Commerce Control List. |
| deemed export | A release or transfer of technology or source code to a foreign person in the United States. The EAR treat it as an export to that person's most recent country of citizenship or permanent residency (15 CFR 734.13). |
| DDTC registration | Registration with the Directorate of Defense Trade Controls. Required for manufacturers and exporters of ITAR-controlled defense articles, even if they never export. |
| specialty metals clause | DFARS 252.225-7009. Requires that certain metals, such as titanium and some steel and nickel alloys, in covered DoD items be melted or produced in the United States or a qualifying country. |
| Buy American Act | A law requiring a preference for domestic end products in federal purchases, implemented in FAR Part 25. It works through price evaluation preferences, not an outright ban. |
| Berry Amendment | A law requiring that certain items bought by DoD, mainly textiles, clothing, and hand and measuring tools, be entirely grown, produced, or manufactured in the United States. |
| first article test | A test of a sample unit before full production to prove your process meets the drawing. Often required of a new source. |
| certificate of conformance | A signed statement from the supplier that the delivered items meet the contract requirements. Used in place of government inspection for some buys. |
| material certification | The mill or process certification that proves the material or treatment used matches the specification called out on the drawing. |
| source approval request (SAR) | A package you submit to become an approved source for a part with restricted sources, typically a flight-critical or safety item. It takes time, so start it before the solicitation. |
| qualified products list (QPL) | A list of products already tested and approved against a military specification. Only listed products may be offered on buys that require it. |
| DIBBS | DLA Internet Bid Board System. DLA's portal for posting and quoting on most of its small buys. Many DLA buys never appear on SAM.gov. |
| DLA | Defense Logistics Agency. Buys spares, consumables, and repair parts for all the services through activities such as DLA Aviation, DLA Land and Maritime, and DLA Troop Support. |
| long-term contract (LTC) | DLA's term for a multi-year contract, often an IDIQ, covering repeat parts. It replaces many one-off purchase orders with a single vehicle. |
| period of performance | The dates a contract or order runs, from the start date to the current end date. |
| base period | The initial guaranteed term of a contract, before any option is exercised. |
| option period | An additional term the government may add at its choice, usually a year at a time, without a new competition. |
| base and all options value | The total potential value of a contract if every option is exercised. Also called the ceiling or potential value. |
| obligated amount | The dollars the government has actually committed on an award to date. Usually less than the ceiling, and sometimes negative on a modification. |
| outlay | Money actually paid out by Treasury against an obligation. Outlays lag obligations. |
| recompete | The new buy an agency runs when a contract nears its end and the need continues. The incumbent has an advantage but not a lock. |
| incumbent | The vendor currently holding a contract. |
| prime contractor | The company with the direct contract with the government. |
| subcontractor | A company that sells to the prime contractor rather than directly to the government. |
| flowdown clause | A FAR or DFARS clause a prime must pass to its subcontractors, such as cybersecurity, specialty metals, or export control requirements. |
| teaming agreement | A written arrangement between companies to pursue a bid together, usually one as prime and the others as subcontractors. |
| joint venture | A separate entity formed by two or more firms to bid as one. SBA has specific rules for joint ventures that keep small business status. |
| mentor-protege | A program pairing a small business with a larger, experienced mentor. SBA runs one; DoD has its own. Approved pairs may form joint ventures that count as small. |
| size standard | The maximum employee count or annual receipts that lets a firm count as small in a given NAICS code. SBA sets it. |
| small business office (OSBP) | The Office of Small Business Programs at a DoD component or NASA. Its staff help small firms find opportunities and the right people. Civilian agencies call it OSDBU. |
| contracting officer (CO) | The only government official with the authority to sign, change, or terminate a contract. |
| contracting officer's representative (COR) | A technical person the CO appoints to monitor performance. A COR cannot change the contract or direct work outside it. |
| FOB destination | The seller pays shipping and keeps title and risk until the goods are delivered to the named destination. |
| FOB origin | The government takes title and risk at the seller's dock and arranges or pays for transportation. |
| wide area workflow (WAWF) / PIEE | Wide Area Workflow, now part of the Procurement Integrated Enterprise Environment. Where DoD contractors submit invoices and receiving reports to get paid. |
| unique item identifier (IUID) | Item Unique Identification. A permanent machine-readable mark required on certain DoD items above a unit cost threshold or otherwise designated, under DFARS 252.211-7003. |
| contract action report | The record a contracting office files for every award, option and modification and the source of most federal award data. |
| USASpending | Treasury's site for federal spending. It republishes federal contract action data alongside grants and other awards, with search and download. |
| extent competed | The field that records whether an award was competed, and how: full and open, after exclusion of sources, not competed, or not available for competition. |
| number of offers received | The field that records how many offers or quotes the buyer received. A value of one on a competed buy means nobody else quoted. |
| GOVCON | Government contracting, as the industry calls itself. Usually means selling to the federal government rather than to a state or a city. |
| SLED | State, local and education. The non-federal public sector, which buys differently and is not covered by the FAR. |
| KO | Contracting officer, in Department of Defense usage. Spelled this way to keep the role distinct from a commanding officer. |
| CO | Contracting officer. The only official who can obligate the government, up to the dollar limit of their written warrant. |
| COR | Contracting officer's representative. Monitors performance and accepts work after award. A COR cannot change the contract. |
| COTR | Contracting officer's technical representative. An older name for much the same role as a COR. |
| PCO | Procuring contracting officer. The contracting officer who awarded the contract, as distinct from one administering it afterwards. |
| MPT | Micro-purchase threshold. The value below which an agency may buy with a purchase card under simplified procedures, generally without competition. |
| SAT | Simplified acquisition threshold. The ceiling for streamlined buying procedures. Buys between the micro-purchase threshold and this one are reserved for small business by default. |
| SOW | Statement of work. What the contractor is required to do, written as tasks. |
| PWS | Performance work statement. The same job described as outcomes and measures rather than as tasks, leaving the method to the contractor. |
| SOO | Statement of objectives. A short statement of what the government wants to achieve, leaving bidders to propose the work itself. |
| CLIN | Contract line item number. The numbered line a deliverable and its price sit on. Invoices and modifications are written against CLINs. |
| SIN | Special item number. The category a product or service sits in on a GSA schedule. Hourly rates are published per SIN. |
| MAS | Multiple Award Schedule. GSA's government-wide contract vehicle, also called the Federal Supply Schedule. |
| GWAC | Government-wide acquisition contract. A vehicle one agency runs that any agency may order against, usually for technology. |
| BPA | Blanket purchase agreement. A standing arrangement for repeat purchases against agreed terms, so each buy does not need a fresh solicitation. |
| T&M | Time and materials. A contract paying agreed hourly labor rates plus the cost of materials, used when the work cannot be priced firmly. |
| CPFF | Cost plus fixed fee. A cost-reimbursement contract paying allowable costs plus a fee agreed at the start and not varying with cost. |
| CPIF | Cost plus incentive fee. Cost reimbursement where the fee moves with how the contractor performs against agreed targets. |
| CPAF | Cost plus award fee. Cost reimbursement where part of the fee is decided periodically by the government on stated criteria. |
| TINA | Truth in Negotiations Act, now the truthful cost or pricing data requirements. Above a threshold you must certify that the cost data you gave is current, accurate and complete. |
| CAS | Cost Accounting Standards. Rules on how certain contractors measure, assign and allocate costs. They apply above thresholds and mostly to cost-type work. |
| DCAA | Defense Contract Audit Agency. Audits contractor accounting systems, incurred costs and proposals for DoD and other agencies. |
| DCMA | Defense Contract Management Agency. Administers DoD contracts after award: quality, delivery, and performance. |
| CUI | Controlled unclassified information. Government information that is not classified but is still protected, and the reason most defense cybersecurity clauses exist. |
| CMMC | Cybersecurity Maturity Model Certification. The DoD program for verifying that suppliers meet required security practices before award. |
| PIEE | Procurement Integrated Enterprise Environment. The DoD system where contractors submit invoices and receiving reports. |
| eSRS | Electronic Subcontracting Reporting System. Where primes report what they actually subcontracted to small businesses against their plan. |
| CPARS | Contractor Performance Assessment Reporting System. Where agencies record how you performed. It follows you to the next bid. |
| PPIRS | Past Performance Information Retrieval System. The older name for the system that made recorded past performance available to evaluators. |
| OSDBU | Office of Small and Disadvantaged Business Utilization. Every large agency has one, and it exists to help firms like yours find a way in. |
| APEX Accelerator | A government-funded local centre offering counselling and training to firms entering government contracting. Formerly called a PTAC. |
| PTAC | Procurement Technical Assistance Center. The former name for an APEX Accelerator. |
| SBIR | Small Business Innovation Research. A program funding research and development by small firms, with its own solicitations and phases. |
| J&A | Justification and approval. The written explanation an agency must publish to award without full competition. It names the supplier, the authority, and often the date the work is next competed. |
| LPTA | Lowest price technically acceptable. A source selection method where, among proposals that pass the technical bar, the cheapest wins. |
| FAR | Federal Acquisition Regulation. The common rulebook for executive branch buying. |
| DFARS | Defense Federal Acquisition Regulation Supplement. The Department of Defense's additions to the FAR. |
Definitions are simplified. The FAR, DFARS, and SBA regulations control.
Related pages
- How to read an award recordThe award fields above, explained in order.
- GuidesStep by step guides to registration, quoting, and compliance.
- FAQQuestions about the product, its data, and its plans.
- DataThe sources behind every page.
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