Government Contracting Glossary
47+ essential terms every government contractor needs to know. Click any term to jump to its definition.
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8(a) Program
The SBA's 8(a) Business Development Program for socially and economically disadvantaged small businesses. Provides access to sole-source contracts up to $4.5M (services) or $8M (manufacturing), mentoring, and a nine-year development period.
Read the full guide →B
Best Value
An evaluation approach where the government considers factors in addition to price when making an award decision. The government selects the proposal that offers the greatest overall benefit, which may not be the lowest-priced offer.
Read the full guide →Bid/No-Bid Decision
The strategic analysis a contractor performs to decide whether to pursue a specific contract opportunity. Considers factors like competitive landscape, past performance fit, resource availability, and probability of win.
Read the full guide →C
CAGE Code
Commercial and Government Entity code — a unique five-character alphanumeric identifier assigned by the Defense Logistics Agency (DLA) to entities doing business with the federal government. Obtained automatically through SAM.gov registration.
Read the full guide →Capability Statement
A one- to two-page document that serves as a business resume for government buyers. Includes core competencies, past performance, differentiators, and company data (UEI, CAGE code, NAICS codes, certifications).
Read the full guide →CO (Contracting Officer)
The government official with legal authority to enter into, administer, and terminate contracts on behalf of the government. Only COs can bind the government to a contractual agreement.
Compliance Matrix
A document that maps every requirement in a solicitation to the corresponding section of your proposal. Ensures no requirements are missed and demonstrates full responsiveness to evaluators.
Read the full guide →COR (Contracting Officer Representative)
A government employee designated by the Contracting Officer to assist in managing contract performance. CORs monitor day-to-day work, review deliverables, and report to the CO, but cannot modify contract terms.
CPARS
Contractor Performance Assessment Reporting System — the government's database for recording contractor performance evaluations. Past performance ratings in CPARS directly affect your ability to win future contracts.
E
EDWOSB
Economically Disadvantaged Women-Owned Small Business — an SBA certification for women-owned businesses whose owners meet additional economic disadvantage thresholds. Provides access to set-asides in a broader range of NAICS codes than standard WOSB certification.
Read the full guide →EFT (Electronic Funds Transfer)
The method by which the government pays contractors. Banking information for EFT must be provided during SAM.gov registration. All federal contract payments are made electronically.
Read the full guide →F
FAR (Federal Acquisition Regulation)
The primary set of rules governing how the federal government purchases goods and services. The FAR covers everything from competition requirements and contract types to payment terms and dispute resolution. Available at acquisition.gov.
Full and Open Competition
A procurement where any responsible business — large or small — can submit a proposal. This is the default method for federal acquisitions above the simplified acquisition threshold, unless a set-aside or exception applies.
G
GSA Schedule
A long-term, government-wide contract with pre-negotiated pricing administered by the General Services Administration. Also called MAS (Multiple Award Schedule). Gives agencies a streamlined way to buy from pre-approved vendors.
Read the full guide →GWAC
Government-Wide Acquisition Contract — a pre-competed contract vehicle available to multiple federal agencies, typically for IT services. Examples include Alliant 2 and 8(a) STARS III.
H
HUBZone
Historically Underutilized Business Zone — an SBA program for businesses with principal offices and 35%+ employees in designated economically distressed areas. Benefits include set-asides, sole-source contracts, and a 10% price evaluation preference.
Read the full guide →I
IDIQ
Indefinite Delivery/Indefinite Quantity — a contract type that provides for an indefinite quantity of services or supplies during a fixed period. Work is ordered through individual task orders or delivery orders, each competed among IDIQ holders.
IDV (Indefinite Delivery Vehicle)
A contract that allows the government to acquire supplies or services by issuing individual orders. Includes IDIQ contracts, requirements contracts, definite-quantity contracts, and GSA Schedules.
IFF (Industrial Funding Fee)
A fee paid by GSA Schedule holders on their schedule sales, currently 0.75%. This fee funds GSA's Federal Acquisition Service operations. Paid quarterly based on reported sales.
Read the full guide →L
LPTA
Lowest Price Technically Acceptable — an evaluation method where the government awards to the lowest-priced proposal that meets all technical requirements. Price is the deciding factor once technical acceptability is established.
Read the full guide →M
Mentor-Protege Program
SBA program that pairs experienced government contractors (mentors) with small businesses (proteges). Enables joint ventures on contracts, with the mentor providing business development, technical, and financial assistance.
Read the full guide →Micro-Purchase Threshold
The dollar amount below which the government can make purchases without formal solicitation procedures — currently $10,000 for most agencies. Government purchase card (credit card) transactions typically fall under this threshold.
N
NAICS Code
North American Industry Classification System code — a six-digit code that classifies every type of business activity. Used to categorize solicitations and determine small business size standards. Each NAICS code has a specific revenue or employee count threshold.
Read the full guide →NCAGE Code
NATO Commercial and Government Entity code — the international equivalent of a CAGE code, assigned to non-U.S. entities through their country's national codification bureau. Required before foreign entities can register on SAM.gov.
Read the full guide →O
OSDBU
Office of Small and Disadvantaged Business Utilization — every major federal agency has one. OSDBUs help small businesses connect with procurement opportunities and advocate for small business participation within their agency.
Read the full guide →P
Past Performance
A contractor's track record of delivering quality work on previous contracts. Evaluated as part of most federal proposals. Includes relevance, quality, schedule adherence, and customer satisfaction. Documented in CPARS for federal contracts.
Read the full guide →PPQ (Past Performance Questionnaire)
A form sent to your references during proposal evaluation asking them to rate your performance on previous contracts. The government uses PPQ responses to assess the risk of awarding you a new contract.
Prime Contract
A contract awarded directly by a government agency to a business. The prime contractor is responsible for overall contract performance and may use subcontractors to perform portions of the work.
Read the full guide →PSC (Product Service Code)
A four-character code used by the government to categorize the type of product or service being purchased. Similar to NAICS codes but used specifically for federal procurement classification.
R
RFI (Request for Information)
A pre-solicitation document where an agency asks industry for information to help plan a future procurement. Not a solicitation — no contract will be awarded from an RFI. Responding demonstrates interest and helps shape the eventual requirement.
Read the full guide →RFP (Request for Proposal)
A formal solicitation asking contractors to submit detailed proposals including technical approach, management plan, past performance, and pricing. Evaluated based on stated criteria in the solicitation.
Read the full guide →RFQ (Request for Quote)
A solicitation asking contractors to submit price quotes for specific goods or services. Typically used for simplified acquisitions or orders under existing contract vehicles like GSA Schedules.
Rule of Two
The FAR requirement that a contracting officer must set aside a procurement for small businesses if there is a reasonable expectation that at least two qualified small businesses will submit competitive offers at fair market prices.
Read the full guide →S
SAM.gov
System for Award Management — the official U.S. government website for entity registration, contract opportunities, contract data, and wage determinations. Registration is free and mandatory for any business seeking federal contracts.
Read the full guide →SBA
Small Business Administration — the federal agency that supports small businesses through programs including 8(a), SDVOSB, HUBZone, and WOSB certifications, lending programs, counseling, and advocacy.
Read the full guide →SDVOSB
Service-Disabled Veteran-Owned Small Business — an SBA certification for businesses 51%+ owned and controlled by veterans with service-connected disabilities. Provides access to set-asides, sole-source contracts, and VA Veterans First priority.
Read the full guide →Set-Aside
A procurement restricted to specific categories of small businesses. Types include small business set-asides, 8(a), SDVOSB, HUBZone, and WOSB set-asides. Large businesses are excluded from competing on set-aside contracts.
Read the full guide →Simplified Acquisition Threshold
The dollar amount below which agencies can use streamlined purchasing procedures — currently $250,000. Procurements below this threshold have less paperwork, faster timelines, and are generally reserved for small businesses.
SIN (Special Item Number)
A category code within the GSA Multiple Award Schedule that identifies specific products or services. Contractors must be approved under the relevant SIN(s) to offer those items through their GSA Schedule.
Read the full guide →Sole-Source Contract
A contract awarded to a single contractor without competition. Available to certified 8(a), SDVOSB, HUBZone, and WOSB businesses up to $4.5M for services and $8M for manufacturing, at the contracting officer's discretion.
Read the full guide →Sources Sought
A pre-solicitation notice where an agency asks industry to express interest and capability for a planned procurement. Used to determine whether a set-aside is appropriate (Rule of Two). Responding is critical for shaping set-aside decisions.
Read the full guide →Subcontracting Plan
A plan required of large business prime contractors on contracts over $750,000 detailing how they will use small business subcontractors. Creates a pipeline of subcontracting opportunities for small businesses.
Read the full guide →T
Task Order
An individual order for services issued under an IDIQ or other indefinite delivery contract. Task orders define specific work requirements, period of performance, and funding for a portion of the overall contract.
Teaming Agreement
A formal agreement between two or more businesses to pursue a specific contract opportunity together. Defines roles, responsibilities, and work share. Can be structured as prime/subcontractor or joint venture.
Read the full guide →U
UEI (Unique Entity Identifier)
A 12-character alphanumeric identifier that replaced the DUNS number in April 2022 as the primary entity identifier for federal contracting. Generated automatically during SAM.gov registration.
Read the full guide →V
VOSB
Veteran-Owned Small Business — an SBA certification for businesses 51%+ owned and controlled by veterans. Provides access to VA Veterans First contracting priority. Distinct from SDVOSB, which requires a service-connected disability.
Read the full guide →W
WOSB
Women-Owned Small Business — an SBA certification for businesses 51%+ owned and controlled by women who are U.S. citizens. Provides access to set-aside contracts in designated NAICS codes where women-owned businesses are underrepresented.
Read the full guide →New to Government Contracting?
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