Government Contracting Glossary

60 terms every bidder should know — written for people who have to respond to the solicitation, not just read about it.

Solicitations

Request for Proposal (RFP)A formal solicitation asking vendors to propose a solution and price.Request for Information (RFI)A market research notice that gathers vendor capability information.Request for Quotation (RFQ)A simplified solicitation used for commercial items and smaller buys.Sources Sought NoticeA market research notice used to determine small business capability.Past PerformanceEvaluation of how well an offeror performed similar prior work.Compliance MatrixA table mapping every solicitation requirement to a proposal location.Section L — Instructions to OfferorsThe part of an RFP that dictates proposal format and content.Section M — Evaluation CriteriaThe scoring rubric the government uses to select an awardee.Best Value Trade-OffAward method allowing the government to pay more for higher value.

Contracts

Statement of Work (SOW)The document defining the work a contractor must perform.Performance Work Statement (PWS)An outcome-based work statement measured by performance standards.Statement of Objectives (SOO)A short document stating goals and letting vendors propose the work statement.Contractor Performance Assessment Reporting System (CPARS)The federal system recording contractor performance ratings.Indefinite Delivery, Indefinite Quantity (IDIQ)A contract vehicle for an unspecified quantity of work over a period.Task OrderAn order for services placed against an existing IDIQ contract.Government-Wide Acquisition Contract (GWAC)A pre-competed IT contract usable by any federal agency.GSA Multiple Award ScheduleA long-term contract offering commercial products and services to agencies.Bid ProtestA formal challenge to a solicitation or award decision.DebriefingThe agency's post-award explanation of an offeror's evaluation.Teaming AgreementAn agreement between a prime and subcontractor to pursue a bid together.Contract Data Requirements List (CDRL)The list of formal deliverables and their submission schedule.Quality Assurance Surveillance Plan (QASP)The plan describing how the government will monitor performance.Sole-Source AwardAn award made without competition under an authorized exception.

Compliance

Federal Acquisition Regulation (FAR)The primary rulebook governing federal purchasing.Defense Federal Acquisition Regulation Supplement (DFARS)DoD's supplement to the FAR, including cybersecurity requirements.Cybersecurity Maturity Model Certification (CMMC)DoD's tiered cybersecurity certification for contractors.NIST SP 800-171The security control set for protecting CUI in nonfederal systems.Controlled Unclassified Information (CUI)Sensitive but unclassified government information requiring safeguards.SAM.govThe federal system for entity registration and contract opportunities.Unique Entity Identifier (UEI)The 12-character identifier assigned to entities in SAM.gov.Commercial and Government Entity Code (CAGE)A five-character code identifying a facility location.NAICS CodeThe industry classification that sets small business size standards.Defense Contract Audit Agency (DCAA)The agency auditing contractor costs and accounting systems.

Small Business

Small Business Size StandardThe revenue or employee ceiling defining a small business by industry.Set-AsideA solicitation reserved for a category of small businesses.Rule of TwoSet aside a buy when two or more capable small businesses are expected.8(a) Business Development ProgramSBA program for socially and economically disadvantaged firms.Service-Disabled Veteran-Owned Small Business (SDVOSB)A verified small business owned and controlled by service-disabled veterans.Veteran-Owned Small Business (VOSB)A small business at least 51% owned by veterans.HUBZone ProgramSet-aside program for firms in historically underutilized business zones.Women-Owned Small Business (WOSB)Certified small business majority-owned by women.Capability StatementA one-page marketing summary of a contractor's qualifications.Joint VentureA formal entity formed by two firms to pursue contracts jointly.Limitations on SubcontractingRules capping how much set-aside work can go to non-similarly situated firms.AffiliationSBA rule combining related firms' size for eligibility purposes.

Pricing

Lowest Price Technically Acceptable (LPTA)Award to the cheapest offer that meets stated minimums.Simplified Acquisition Threshold (SAT)The dollar ceiling below which streamlined procedures apply.Micro-Purchase ThresholdThe small-dollar ceiling for purchase card buys without competition.Firm-Fixed-Price Contract (FFP)A contract with a set price regardless of the contractor's actual cost.Cost-Reimbursement ContractThe government reimburses allowable costs plus a fee.Time-and-Materials Contract (T&M)Payment based on labor hours at fixed rates plus materials at cost.Labor Category (LCAT)A defined role with qualifications and a billing rate.Wrap RateThe multiplier converting direct labor cost into a billed rate.Indirect RateRates allocating overhead and G&A costs across contracts.Price Evaluation PreferenceAn adjustment favoring HUBZone firms in open competition.

Grants

Notice of Funding Opportunity (NOFO)The federal announcement describing an available grant program.Logic ModelA diagram linking inputs and activities to outcomes and impact.Evaluation PlanThe methodology for measuring whether a grant achieved its goals.Negotiated Indirect Cost Rate Agreement (NICRA)The approved rate for charging indirect costs to federal grants.Cost Share / Matching FundsThe applicant's required contribution to a funded project.

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