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Government Contracting Terms

Using and understanding contracting terms is necessary when working with the federal government. Listed below are commonly used government contracting terms and their meanings. Looking for an acronym? Check out a list of commonly used acronyms and their meanings Government Acronyms.

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Meaning
collapse Letter : A ‎(28)
 ACCEPTANCE PERIOD
The number of calendar days available to the Government for awarding a contract from the date specified in the solicitation for receipt of offers.
 ACQUISITION
The process of purchasing goods and services for government activity that includes a detailed establishment of the required materials, method of procurement, solicitation, financing, a selection of sources, contract management and other functions.
 APPROPRIATION
Money from public funds that has been set aside for a specific purpose
 AWARD
Any mechanism signed by a contracting officer providing government funds or other resources to an offeror
8(a) CONTRACT
A contract with the Small Business Administration under a program established by Section 8(a) of the Small Business Act. Under that program, the Small Business Administration is authorized to enter into all types of contracts with other agencies and let subcontracts for performing those contracts to firms eligible for program participation.
ACCEPTANCE OF (OFFER/WORK)
The act of an authorized representative of the Government by which the Government, for itself or as agent of another, assumes ownership of existing identified supplies tendered or approves specific services rendered as partial or complete performance of the contract
ACCEPTANCE TIME
A definite period of time that one party to a negotiation has to accept an offer by another party. Instead of forcing a quick decision, this tactic can be used to deliberately give the other negotiator more time to grasp a solution or ideas
ACQUISITION PLANNING
The process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost. It includes developing the overall strategy for managing the acquisition.
ACTUAL COSTS
Amounts determined on the basis of costs incurred, as distinguished from forecasted costs. Actual costs include standard costs properly adjusted for applicable variances.
ADEQUATE PRICE COMPETITION
Adequate price competition exists when two or more responsible offerors, competing independently, submit priced offers that satisfy the Government's expressed requirement
ADMINISTRATIVE CHANGE
A unilateral contract modification, in writing, that does not affect the substantive rights of the parties
ADMINISTRATIVE CONTRACTING OFFICER
Contracting officer whose primary duties involve contract administration
ADVANCE AGREEMENT
An agreement on the treatment of special or unusual costs, before those costs are incurred. The purpose of the agreement is to avoid possible subsequent disallowance or dispute based on unreasonableness, unallocability, or unallowability under specific cost principles.
ADVANCE NOTICE
A notice of projected Government construction requirements distributed to reach as many prospective offerors as practicable.
ADVANCE PAYMENT BOND
A bond that secures fulfillment of the contractor's obligations under an advance payment provision.
ADVANCE PAYMENTS
Advances of money by the Government to a prime contractor before, in anticipation of, and for the purpose of complete performance under one or more contracts.
AFFILIATES
Business concerns, organizations, or individuals that control each other or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest.
AFFIRMATIVE ACTION PROGRAM
A contractor's program that complies with Department of Labor regulations to ensure equal opportunity in employment to minorities and women.
AGENCY PROTEST
Also referred to as agency procurement protest. A protest made to the agency responsible for the procurement.
ALLOCATE
To assign an item of cost, or a group of items of cost, to one or more cost objectives. This term includes both direct assignment of cost and the reassignment of a share from an indirect cost pool.
AMENDMENT
A change to a solicitation before contract award
ANTI-DEFICIENCY ACT
Requires that no officer or employee of the Government may create or authorize an obligation in excess of the funds available, or in advance of appropriations unless otherwise authorized by law.
APPEAL
Action taken by a bidder, offeror or vendor to seek a hearing before a disinterested third-party to challenge a decision
APPOINTMENT LETTER
Document used by the contracting officer to assign contractual responsibility to another Government official. The letter or memorandum specifies the official's authority and is signed by the Contracting Officer.
ARBITRATION
A resolution by a disinterested third-party to disputes, sometimes pre-dispute, through a clause in a contract
AREAWIDE CONTRACT
A contract entered into between the General Services Administration and a utility service supplier to cover utility service needs of Federal agencies within the franchise territory of the supplier. Each areawide contract includes an authorization form for requesting service, connection, disconnection, or change in service.
ASSIGNMENT OF CLAIMS
The transfer or making over by the contractor to a bank, trust company, or other financing institution, as security for a loan to the contractor, of its right to be paid by the Government for contract performance.
AUDIT
A review of an offeror's or contractor's books and financial records to evaluate reporting accuracy, financial risk, or cost reasonableness and report to the Contracting Officer or another Government official.
collapse Letter : B ‎(15)
 BID PRICE
The stated bid sum
 BUNDLING
Two or more consolidated requirements for supplies or services, previously provided or performed under separate similar contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business
BASIC AGREEMENT
A basic agreement is not a contract. It is a written instrument of understanding, negotiated between an agency or contracting activity and a contractor, that Contains contract clauses applying to future contracts between the parties during its term, and contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the basic agreement.
BEST AND FINAL OFFER
A contractor"s final offer following the conclusion of discussions in relation to negotiated procurements
BEST VALUE
The solution achieved by the ordering activity selecting the lowest overall price offered depending on the circumstances of the purchase
BID
An offer to perform work at a specified cost as described in a contract that includes a complete proposal to do the work. Typically time sensitive and good for 30 to 60 days.
BID AND PROPOSAL (B&P) COSTS
Costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) on potential Government or non-Government contracts. The term does not include the costs of effort sponsored by a grant or cooperative agreement, or required in the performance of a contract.
BILL OF LADING
A written receipt, contract or invoice given by a carrier to the recipient or sender showing a list of goods delivered
BILLING RATE
An indirect cost rate that is established temporarily for interim reimbursement of incurred indirect costs and adjusted as necessary pending establishment of final indirect cost rates.
BLANKET PURCHASE ORDER (BPO)
An arrangement between the purchaser and a vendor to provide the purchaser's requirements for an item or service on an as-required basis. Time limited and with a maximum amount of money that can be spent at one time. Specifically identifies the people authorized to accept goods.
BOARD OF CONTRACT APPEALS (BCA)
An independent tribunal that hears and decides contract disputes between government contractors and the General Services Administration (GSA).
BOND
A financial agreement by a surety company that work will be completed as described in a contract
BREAK EVEN
A situation that exists when cost and revenue (e.g., contract price) are equal. Profit is zero
BROAD AGENCY ANNOUNCEMENT (BAA)
A general announcement of an agency's research interest including criteria for selecting proposals and soliciting the participation of all offerors capable of satisfying the Government's needs.
BUY ITEM
An item or work effort to be produced or performed by a subcontractor
collapse Letter : C ‎(27)
 CONSIDERATION
In contract law, something of value. It may be money, an act, or a promise. It is one of the key elements required to have a binding contract.
 CONSULTING SERVICES
Advice or assistance of a purely advisory nature provided for a predetermined fee to an agency by an outside individual or vendor under contract to that agency
CAGE CODE
A five-character identifying number used extensively withing the federal government
CANCELLATION
The cancellation (within a contractually specified time) of the total requirements of all remaining program years of a multi-year contract. Cancellation results when the Contracting Officer notifies the contractor of nonavailability of funds for contract performance for any subsequent program year, or fails to notify the contractor that funds are available for performance of the succeeding program year requirement.
CAPITAL
Assets, less liabilities, representing the ownership interest in business
CENTRAL CONTRACTOR REGISTRATION (CCR)
The primary vendor database for the U.S. Federal Government. Registration with CCR is mandatory in order to apply for a General Services Administration (GSA) Schedule Contract
CERTIFIED 8(a) FIRM
A designated small business that is at least 51 percent owned by one or more individuals who are both designated socially and economically disadvantaged, and eligible to receive federal contracts under the Small Business Administration's 8(a) Business Development Program.
CHANGE ORDER
A written order, signed by the Contracting Officer, directing the contractor to make a change that the Changes clause authorizes the Contracting Officer to order without the contractor's consent.
CHIEF INFORMATION OFFICER (CIO)
General Services Administration (GSA) officer who manages the Electronic and Information Technology (IT) business for the Office of Governmentwide Policy (OGP).
CLAIM
A written demand by one of the contracting parties as a matter of right, the payment of money in a certain sum, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract
CLASSIFIED INFORMATION
Any information or material, regardless of its physical form or characteristics, that is owned by, produced by or for, or under the control of the United States Government, and determined pursuant to Executive Order 12356, April 2, 1982 or prior orders to
require protection against unauthorized disclosure, and is so designated.
CLOSEOUT
The process in which the awarding agency determines that all applicable administrative actions and all required work of the award have been completed by the recipient and the awarding agency
CLOSING DATE
The deadline for all bid submissions
COLLATERAL COSTS
In value engineering, agency costs of operation, maintenance, logistic support, or Government-furnished property.
CONTINGENT FEE
Any commission, percentage, brokerage, or other fee that is contingent upon the success that a person or concern has in securing a Government contract.
CONTRACT
Any type of agreement or order for the procurement of goods or services
CONTRACT ADMINISTRATION OFFICE (CAO)
The organization responsible for ensuring that the contractor complies with the terms and conditions of the contract
CONTRACT MODIFICATION
Any written change in the terms of a contract (after it has been established)
CONTRACT OFFICER
General Services Administration (GSA) staff member, who signs purchase orders, thereby awarding orders to contractors.
CONTRACTOR TEAM ARRANGEMENT
An arrangement under the General Services Administration (GSA) Schedules Program, in which two or more GSA Schedule Contractors join together to provide a total solution to meet a customer's needs.
COST ANALYSIS
The review and evaluation of the separate cost elements and profit in an offeror's or contractor's proposal (including cost or pricing data or information other than cost or pricing data), and the application of judgment to determine how well the proposed costs represent what the cost of the contract should be, assuming reasonable economy and efficiency
COST DATA
All the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred
COST PLUS AWARD FEE (CPAF)
A cost-reimbursement contract that provides for a fee consisting of a base amount fixed at inception of the contract and an award amount that the contractor may earn in whole or in part during performance and that is sufficient to provide motivation for excellence in such areas as quality, timeliness, technical ingenuity, and cost-effective management. The amount of the award fee to be paid is determined by the Government's judgmental evaluation of the contractor's performance in terms of the criteria stated in the contract. This determination is made unilaterally by the Government and is not subject to the Disputes clause.
COST PLUS FIXED FEE (CPFF)
A cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract. This contract type permits contracting for efforts that might otherwise present too great a risk to contractors, but it provides the contractor only a minimum incentive to control costs.
COST PLUS INCENTIVE FEE (CPIF)
A cost-reimbursement contract that provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. This contract type specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. After contract performance, the fee payable to the contractor is determined in accordance with the formula. The formula provides, within limits, for increases in fee above target fee when total allowable costs are less than target costs, and decreases in fee below target fee when total allowable costs exceed target costs. This increase or decrease is intended to provide an incentive for the contractor to manage the contract effectively. When total allowable cost is greater than or less than the range of costs within which the fee-adjustment formula operates, the contractor is paid total allowable costs, plus the minimum or maximum fee.
COST REIMBURSEMENT CONTRACTS
Contracts based on payment by an agency to a contractor of allowable, reasonable and allocated costs incurred in the contract performance to the extent prescribed in the contract
CURE NOTICE
Oral or written – informs the vendor that he/she is in default and how to correct it
collapse Letter : D ‎(15)
DATA UNIVERSAL NUMBERING SYSTEM (DUNS)
A 9-digit number, required in order to apply for a General Services Administration Schedule Contract, which is assigned by Dun and Bradstreet, Inc. (D&B) to identify unique business entities.
DEBARMENT
Excludes contractor from government contracting and government approved subcontracting for a reasonable, specified period of time
DECREMENT FACTOR
A percentage used to indicate the relative difference between a proposed price and a recommended should-pay price. A percentage by which a subcontract reduces its subcontract price, if for example, the prime contractor purchases more than a specified amount of supplies.
DEDUCTION
The amount deducted from the contract sum by a change order
DEFENSE ACQUISITION REGULATORY COUNCIL (DARC)
A group composed of representatives from each Military department, the Defense Logistics Agency, and the National Aeronautics and Space Administration in charge of the Federal Acquisition Regulation (FAR) on a joint basis with the Civilian Agency Acquisition Council (CAAC).
DEFENSE CONTRACT AUDIT AGENCY (DCAA)
For contractors other than educational institutions and nonprofit organizations, the Defense Contract Audit Agency (DCAA) is normally the agency responsible for performing Government contract audits
DEFENSE FEDERAL ACQUISITION REGULATIONS SUPPLEMENT (DFARS)
A supplement to the Federal Acquisition Regulations (FAR) that provides Department of Defense (DOD) specific acquisition regulations.
DEFERRED COMPENSATION
An award made by an employer to compensate an employee in a future cost accounting period or periods for services rendered in one or more cost accounting periods before the date of the receipt of compensation by the employee. This definition must not include the amount of year end accruals for salaries, wages, or bonuses that are to be paid within a reasonable period of time after the end of a cost accounting period.
DEFICIENCY
A material failure of a proposal to meet a Government requirement or a combination of significant weaknesses in a proposal that increases the risk of unsuccessful contract performance to an unacceptable level.
DEFINITE-QUANTITY CONTRACT
An indefinite-delivery contract that provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order.
DELEGATE AGENCY
An agency of the U.S. Government authorized by delegation from Department of Commerce to place priority ratings on contracts that support authorized programs. Schedule I of the DPAS lists the Delegate Agencies.
DELIVERABLE
A report or product that must be delivered to an agency to satisfy contractual agreements
DELIVERY ORDER
An order for supplies placed against an established contract
DEVIATION
The issuance or use of a policy, procedure, solicitation provision, contract clause, method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR
DISADVANTAGED BUSINESS
An independent small business which is at least 51% owned and controlled by one or more socially and/or economically disadvantaged individuals
collapse Letter : E ‎(8)
E-BUY
An online Request for Quotation (RFQ) tool for commercial supplies and services offered by General Service Administration (GSA) Schedule contractors who are on GSAAdvantage.
E-COMMERCE
A paperless process including electronic mail, electronic bulletin boards, electroniC funds transfer, electronic data interchange, and similar techniques for accomplishing business transactions. The use of terms commonly associated with paper transactions (e.g., copy, document, page, printed, sealed envelope, and stamped) must not be interpreted to restrict the use of electronic commerce. Contracting Officers may supplement electronic transactions by using other media to meet the requirement of any contract action governed by FAR
EFFECTIVE DATE
For a solicitation amendment, change order, or administrative change, the effective date must be the issue date of the amendment, change order, or administrative change.
ENERGY SERVICES SCHEDULE CONTRACT
A General Services Administration (GSA) Schedule Contract enabling federal consumers to purchase energy management, optimization, and support services.
ENVIRONMENTAL SERVICES SCHEDULE CONTRACT (ES)
A General Services Administration (GSA) Schedule Contract enabling federal consumers to purchase services related to environmental compliancy and protection.
ESCALATION CLAUSE
Permits the adjustment of contract prices by an amount or percent if certain, specified, contingencies occur, such as changes in the vendor's raw material or labor costs
EXECUTION
The final consummation of a contract action including all formalities (e.g., signature and any necessary approvals) needed to complete the action
EXECUTIVE AGREEMENT
A government-to-government agreement, including agreements with international organizations, to which the United States is a party
collapse Letter : F ‎(25)
FACTORING
Process of using account receivables, through a fee, to leverage advance money from a financial institution
FAIR AND REASONABLE PRICE
A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. "Fair and reasonable" price is subject to statutory and regulatory limitations.
FAIR MARKET PRICE
A price based on reasonable costs under normal competitive conditions and not on lowest possible cost.
FEDBIZOPPS
An online portal that enables commercial vendors to search, monitor, and retrieve opportunities solicited by the federal contracting community.
FEDERAL ACQUISITION REGULATION (FAR)
A set of rules that govern executive agencies in acquiring goods and services.
FEDERAL ACQUISITION SERVICE (FAS)
The result of a reorganization plan that consolidated the Federal Technology Service (FTS) and the Federal Supply Service (FSS) into one organization
FEDERAL ADVISORY COMMITTEE ACT (FACA)
An act by Congress that ensures advice rendered to the executive branch by the various advisory committees, task forces, boards, and commissions formed over the years by Congress and the president, be both objective and accessible to the public.
FEDERAL DISPOSAL SYSTEMS (FEDS)
The General Service Administration's (GSA"s) computer system for recording, tracking and controlling the nationwide inventory of excess and surplus property of the federal government.
FEDERAL MANAGEMENT REGULATION (FMR)
A document that replaces the Federal Property Management Regulation (FPMR) which details policies and regulatory requirements on managing property and administrative services.
FEDERAL OFFICE SYSTEMS EXPOSITION (FOSE)
The largest, annually occurring Information Technology (IT) exposition serving the government marketplace.
FEDERAL PROCUREMENT DATA SYSTEM (FPDS)
A central repository of statistical information on federal contracting.
FEDERAL SUPPLY SCHEDULE (FSS)
Publications issued by the GSA schedule contracting office containing the information for placing delivery or task orders under indefinite delivery contracts (including requirements contracts) established with commercial firms to obtain commonly used commercial supplies and services associated with volume buying. Ordering offices issue delivery or task orders directly to the schedule contractors.
FEDERAL TRADE COMMISSION (FTC)
A government body created to prevent unfair methods of competition in commerce.
FEDERAL TRADE REGULATION
A document that details statutory requirements and Executive Branch policies for travel by federal civilian employees and others authorized to travel at government expense.
FEDERALLY FUNDED RESEARCH AND DEVELOPMENTH CENTER (FFRDC)
An activity that is sponsored under a broad charter by a Government agency (or agencies) for the purpose of performing, analyzing, integrating, supporting, and/or managing basic or applied research and/or development, and which receive 70 percent or more of its financial support from the Government
FEINTING
The use of a pretense or action designed to mislead. In negotiations, this tactic normally involves the use of true but misleading statement or behavior. It gives the other negotiator a false impression or deceives the negotiator into believing something that is not true
FILED
The complete receipt of any document by an agency before its close of business. Documents received after close of business are considered filed as of the next day
FIRM FIXED-PRICE CONTRACT (FFP)
A contract that provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract.
FORMAL SOLICITATION
A solicitation that requires a “sealed" response
FREE ON BOARD AT DESTINATION
The seller is responsible for the cost and risk of shipping
FREE ON BOARD FROM ORIGIN
The buyer is responsible for the cost and risk of shipping
FREEDOM OF INFORMATION ACT (FOIA)
The right to access Federal and many state and local agency records. Upon written request, the agency must disclose the desired records, unless they can be lawfully withheld from disclosure under one of nine specific exemptions set out within the FOIA. In this case, burden to substantiate why the information may not be released is placed on the government agency.
FULL AND OPEN COMPETITION
All responsible sources are permitted to compete for a solicitation
GENERAL SERVICES ADMINISTRATION (GSA)
A Federal agency that supplies products and communications for U.S. government offices, provides transportation and office space to federal employees and develops cost-minimizing policies
GPE
The single point where government business opportunities greater than $25,000 can be accessed electronically by the public, including synopses of proposed contract actions, solicitations and associated information
collapse Letter : G ‎(6)
G&A EXPENSE
General administrative and management expenses for a business unit as a whole
GOODS
Materials, equipment, supplies, printing and IT hardware and software
GOODWILL
An unidentifiable intangible asset, that originates under the purchase method of accounting for a business combination when the price paid by the acquiring company exceeds the sum of the identifiable individual assets acquired less liabilities assumed, based upon their fair values. Goodwill may arise from the acquisition of a company as a whole or a portion thereof.
GOVERNMENT WIDE ACQUISITION CONTRACTS
Task order or delivery order contracts, operated by an executive agent designated by the Office of Management and Budget (OMB), for Information Technology (IT) established by one agency for government wide use.
GSA ADVANTAGE
An online shopping and ordering system administered by the General Services Administration (GSA) that offers federal consumers access to thousands of supplies and services provided by vendors who hold GSA Schedule Contracts.
GUARANTEE
A legally enforceable assurance of the quality or duration of a product or of work performed.
collapse Letter : H ‎(1)
HISTORICALLY UNDERUTILIZED BUSINESS ZONES (HUBzone)
Small businesses that operate out of distressed areas and are provided Federal contracting opportunities to empower communities, create jobs and attract private investment
collapse Letter : I ‎(5)
INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ)
Federal type of contract that provides for an indefinite quantity of supplies or services during a fixed period of time and is not specified until a delivery or task order is issued.
INDIRECT COST
Also referred to as burden. Any cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives or an intermediate cost objective. An indirect cost must not be allocated to a final cost objective if other costs incurred for the same purpose in like circumstances have been included as a direct cost of that or any other final cost objective.
INDUSTRIAL FUNDING FEE (IFF)
A .75% user fee built into General Services Administration (GSA) Schedule Contract prices to cover the Federal Acquisition Service's (FAS) cost of operating the Multiple Award Schedule Program (MAS). The total revenue collected by the vendor as a result of the IFF is reported to the Office of Contract Management and sent to the FAS quarterly.
INELIGIBLE
Excluded from Government contracting (and subcontracting, if appropriate) pursuant to statutory, Executive order, or regulatory authority other than the FAR and its implementing and supplementing regulations
ISSUE IN CONTROVERSY
A material disagreement between the Government and the contractor which may result in a claim or is part of an existing claim
collapse Letter : J ‎(3)
JAVITS-WAGNER-O'DAY (JWOD)
A federal law that required the government to purchase some of its supplies and services from nonprofit agencies that employ Americans who are blind or who have other sever limitations
JOINT SETTLEMENT
Joint negotiation of two or more termination settlement proposals from the same contractor under different contracts. or regulatory authority other than the FAR and its implementing and supplementing regulations
JOINT VENTURE
An association of two or more business entities to carry on a single business enterprise for profit for which purpose they combine their property, capitol, efforts, skills and knowledge
collapse Letter : K ‎(1)
KICKBACK
Any fee, money, credit, gift, gratuity, or compensation of any kind that is directly or indirectly provided to agency procurement or program officials by any contractor for the purpose of favorable treatment in connection with obtaining a contract
collapse Letter : L ‎(8)
LABOR COST AT STANDARD
A pre-established measure of the labor element of cost, computed by multiplying labor-rate standard by a labor-time standard
LABOR MARKET
A place where individuals exchange their labor for compensation
LEAD TIME
The time it takes a supplier to deliver goods or services after receipt of an order
LETTER OF INTENT
A letter signifying an intention to enter in to a formal agreement, typically including the terms of that agreement
LIMITATION OF COST
A limitation on the funds available under a cost-reimbursement contract. The parties estimate that the contract cost will not exceed the limitation of cost. The contractor agrees to use its best efforts to perform the work specified in the contract and all obligations under the contract within the estimated cost, which, if the contract is a cost-sharing contract, includes both the Government's and contractor's share of cost.
LIMITED AUTHORITY
When large organizations are involved, most negotiators have limited authority. For example, Government negotiator authority is limited by the funds available and any required management approvals. However, negotiators using this tactic claim they have very little or no authority to negotiate a key issue or issues. Win/lose negotiators use limited authority to identify your negotiation limits without making any commitment or divulging any information themselves.
LINE ITEM
An item of supply or service specified in a solicitation for which the vendor must specify a separate price
LIQUIDATION RATES
Progress payments are recouped by the Government through the deduction of liquidations from payments that would otherwise be due to the contractor for completed contract items.To determine the amount of the liquidation, a liquidation rate is applied to the contract price of contract items delivered and accepted.
collapse Letter : M ‎(8)
MAINTENANCE BOND
A bond that provides a guarantee to an owner that the contractor will rectify defects in workmanship or materials reported to the contractor within a specified time period following final acceptance of the work under contract
MARKET RESEARCH
Collecting and analyzing information about capabilities within the market to satisfy agency needs
MASTER SOLICITATION
A document containing special clauses and provisions that have been identified as essential for the acquisition of a specific type of supply or service that is acquired repetitively.
MEMO OF UNDERSTANDING (MOU)
Expression of mutual understanding of an issue without implying commitments by parties to the understanding
MICRO-PURCHASE
An acquisition of supplies or services (except construction), the aggregate amount of which does not exceed $2,500, except that in the case of construction, the limit is $2,000.
MODIFICATION (AKA MOD)
A minor change in the details of a provision or clause that is specifically authorized by the FAR and does not alter the substance of the provision or clause.
MOST FAVORED CUSTOMER (MFC)
Individuals or entities that receive the best prices, discounts, and/or concessions, regardless of selling terms and conditions.
MULTIPLE AWARD TASK ORDER CONTRACT
DOD agencies seek RFQ/RFP's from many contractors/vendors for construction services. Multiple awardees will be chosen to provide services to the government within a pre-defined dollar amount.
collapse Letter : N ‎(12)
NEGLIGENCE
Failure to exercise that degree of care that a reasonable and prudent person would exercise under the same circumstances
NEGOTIATED CONTRACT COST (NCC)
The estimated cost negotiated in a cost-plus-fixed-fee contract or the negotiated contract target cost in either a fixed-price incentive contract or a cost-plus-incentive fee contract
NET PRICE
Pricing after all discounts, rebates and such have been allowed
NO BID
A response to a solicitation for bids stating that the respondent doesn't wish to submit an offer.
NON-COLLUSION AFFIDAVIT
A notarized statement by a bidder that he has prepared his bid without collusion of any kind
NONPROFIT ORGANIZATION
Any corporation, foundation, trust, or institution operated for scientific, educational, or medical purposes, not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
NONRECURRING COSTS
Those costs which are generally incurred on a one-time basis and include such costs as plant or equipment relocation, plant rearrangement, special tooling, special test equipment, pre-production engineering, initial spoilage and rework, and specialized work force training.
NONSEVERABLE
Property that cannot be removed after erection or installation without substantial loss of value or damage to the property or to the premises where installed
NORTH AMERICAN INDUSTRIAL CLASSIFICATION SYSTEM (NAICS)
A classification system for collecting, analyzing and publishing statistical data related to the economy.
NOTICE OF AWARD
A written notification to a vendor stating that the vendor has received an award
NOTICE TO BIDDERS
A notice contained in the bidding requirements informing prospective bidders of the opportunity to submit bids on a project and setting forth the procedures for doing so
NOTICE TO PROCEED
Written communication issued by the owner to the contractor authorizing him/her to proceed with the work and establishing the date of commencement of the work
collapse Letter : O ‎(6)
OFFER
A response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. A response to an invitation for bids or a request for proposals is an offer. A response to a request for quotations is a quote not an offer.
OFFEROR
A bidder on a government solicitation.
OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO)
A branch of the General Services Administration (GSA) whose mission is to provide policy leadership in strategic planning, budgeting, and financial management.
OFFICE OF THE CHIEF PEOPLE OFFICER (OCPO)
A branch of the General Services Administration (GSA) that provides customers with workforce, organization, and workplace business solutions.
OPTION
A unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract.
OVERHEAD
Indirect costs other than those related to general and administrative expense and selling expenses.
collapse Letter : P ‎(11)
PAST PERFORMANCE INFORMATION
Relevant information, for future source selection purposes, regarding a contractor's actions under previously awarded contracts. It includes, for example, the contractor's record of conforming to contract requirements and to standards of good workmanship; the contractor's record of forecasting and controlling costs; the contractor's adherence to contract schedules, including the administrative aspects of performance; the contractor's history of reasonable and cooperative behavior and commitment to customer satisfaction; and generally, the contractor's business-like concern for the interest of the customer.
PRE-AWARD SURVEY
An evaluation of a prospective contractor's capability to perform a proposed contract
PRIME CONTRACT
A contract or contractual action entered into by the United States for the purpose of obtaining supplies, materials, equipment, or services of any kind.
PROCUREMENT
The procedures for obtaining goods and/or services including all activities from the planning steps and preparation and processing of a requisition, through receipt and acceptance of delivering and processing of a final invoice for payment
PROJECT
An undertaking, composed of one or more elements of work, planned and executed in a fixed time period
PROJECT MANAGER
A third-party consultant or employee of the owner who coordinates the activities of the project. Assists with the development of specific strategies of the project, establishes time frames and benchmarks for the project, assists the owner in hiring other professional services, reviews plans and drawings and makes recommendations to the owner, monitors the budget of all phases of the project, assists the owner in closeout and prepares for occupancy
PROJECT MANUAL
The manual prepared for a project, including the bidding requirements, conditions of the contract and the technical specifications
PROPOSAL
A document used by the owner to evaluate the professional capabilities of a business, agency or individual against a set of pre-established criteria that may be weighted on a numerical scale using a set of questions that allows the owner to determine the best business or agency to hire for the specific job. Normally does not include the cost of services. Designed to evaluate such criteria as previous work experience, the qualifications of the lead professional
PROPRIETARY SPECIFICATION
A restriction to one manufacturer or vendor for acceptable products or services. Example: a specification by brand name that excludes consideration of proposed “equals." Although all sole source specifications are proprietary, all proprietary specifications are not sole source- proprietary items may be available from several vendors through competitive bidding
PROTEST
A written complaint about an administrative action or decision brought by a bidder or offeror to the appropriate administrative section with the intention of receiving a remedial result.
PURCHASE ORDER
An order by the government to buy supplies or services, including construction and research/development upon specified acquisition procedures
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QUALIFIED CONTRACTORS LIST (QCL)
A list of contractors whose capability to provide a service has been evaluated and approved based on detailed prequalification procedures
QUALIFIED PRODUCTS LIST (QPL)
A list of products that have been tested and approved based on written pre-qualification procedures
QUALITY
The composite of material attributes, including performance features and characteristic, of a product or service to satisfy a given need
QUALITY ASSURANCE
The inspection, testing and other relevant action taken to ensure that the desired level of quality is in accordance with the applicable standards or specifications for the product of work
QUALITY CONTROL
The inspection, analysis and other relevant action taken to provide control over what is being done, manufactured or fabricated so that a desirable level of quality is achieved and maintained
QUALITY SURVEY
A detailed analysis and listing of all items of materials and equipment necessary to undertake a project
QUANTITY DISCOUNT
A reduction in the unit price offered for large volume contracts
QUOTATION
A price quoted by a contractor, sub-contractor, material supplier, or vendor to furnish materials, labor, or both
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RATED ORDER
A prime contract for any product, service, or material (including controlled materials) placed by a Delegate Agency under the provisions of the DPAS in support of an authorized program and which require preferential treatment, and includes subcontracts and purchase orders resulting under such contracts.
REASONABLE BIDDER OR OFFEROR
A person or vendor who has the capability to perform fully the contract requirements and the moral and business integrity and reliability which will assure good faith performance and who has been prequalified
REASONABLE PRICE
A price that does not exceed that which would be incurred by a prudent person in the conduct of a competitive business. Reasonable price can be established by market test, price or cost analysis, or the experience and judgment of the purchaser
REQUEST FOR INFORMATION (RFI)
A document issued to the public in order to gain valuable industry input to assist in the acquisition planning process and gain a greater knowledge of industries' ability to provide these services.
REQUEST FOR PROPOSAL (RFP)
A document submitted to one or more potential suppliers detailing project specifications and application procedures, and eliciting a response for supply of said products and services.
REQUEST FOR QUOTATION (RFQ)
A document submitted to one or more potential suppliers eliciting quotations for a product or service.
REQUISITION
An internal document that a functional department (stores, maintenance) sends to the purchasing department containing details of materials to meet its needs, replenish stocks or obtain materials for specific jobs or contracts
RETAINAGE
A percentage of a progress payment withheld based on unsatisfactory contract progress under a construction contract. The percentage withheld must not exceed 10 percent of the approved estimated amount of progress under the terms of the contract and may be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Upon contract completion of all contract requirements, retained amounts must be paid promptly.
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SEALED BIDDING
A method of contracting that employs competitive bids, public bid opening, and awards. Award is made to that responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the Government consider only price and price-related factors included in the invitation
SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS (SDVOSB):
A small business is smaller than a given size as measured by its employment, business receipts, or business assets—that is at least 51 percent owned by one or more individuals who are service-disabled veterans.
SET-ASIDE
A small business “set-aside" is the reserving of an acquisition exclusively for participation by small business concerns, as governed by FAR Part 19.
SIMPLIFIED ACQUISITION THRESHOLD
The simplified acquisition threshold (SAT) is $150,000. The SAT is the threshold used for SAP contracts. The SAT can vary depending on the particular acquisition situation.
SINGLE AWARD TASK ORDER CONTRACT (SATOC)
A purchasing mechanism used by DOD agencies as a form of solicitation requesting proposals from contractors / vendors. Only one awardee will be chosen. The awardee then is the sole provider of services as tasks orders are issued. SATOC's are usually awarded for multi years with a cap award amount.
SITE VISIT
Offerors or quoters are urged and expected to inspect the site where services are to be performed and to satisfy themselves regarding all general and local conditions that may affect the cost of contract performance, to the extent that the information is reasonably obtainable.
SIZE STANDARD
A maximum level of average employment or annual revenue at which a firm can qualify as a small business.
SMALL DISADVANTAGED BUSINESS (SDB)
A designated small business that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged.
SOLE SOURCE
A contract for the purchase of supplies or services that is entered into or proposed to be entered into by an agency after soliciting and negotiating with only one source
SOLICITATION
A document sent to prospective contractors by a Government agency requesting submission of an offer, quote, or information.
SOURCE SELECTION
The process of identifying which offeror(s) will receive a contract in a competitive negotiated acquisition
STANDARD INDUSTRIAL CLASSIFICATION (SIC)
A code published by the Government in the Standard Industrial Classification Manual. These codes classify and define activities by industry categories and is the source used by the Small Business Administration as a guide in defining industries for small business size standards
STOP WORK ORDER
Under a negotiated fixed-price supply, cost-reimbursement supply, research and development, or service contract, a contract clause permits the Contracting Officer to order the contractor to stop work, if a work stoppage is required for reasons such as advancement in the state-of-the-art, production or engineering breakthroughs, or realignment of programs
SUBCONTRACTOR
Any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract. The term includes any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor.
SUBJECT MATTER EXPERT (SME)
An individual possessing the prerequisite knowledge skills and abilities demonstrating competence in a field of endeavor
SURETY
An individual or corporation legally liable for the debt, default, or failure of a principal to satisfy a contractual obligation
SYNOPSIS
A notice of a proposed contract action exceeding $25,000 furnished by an agency for publication in the Commerce Business Daily as required by the Small Business Act
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TARGET COST
The estimated cost of a contract as initially negotiated, adjusted for any change in contract requirements.
TASK ORDER
An order for services placed against an established contract or with government sources
TECHNICAL ANALYSIS
Review by personnel having specialized knowledge, skills, experience, or capability in engineering, science, or management of the proposed types and quantities of materials, labor, processes, special tooling, facilities, the reasonableness of scrap and spoilage, and other factors set forth in the proposals) in order to determine the need for and reasonableness of the proposed resources, assuming reasonable economy and efficiency.
TIME AND MATERIALS CONTRACT
A contract providing for the procurement of supplies/services on the basis of direct labor hours at specified fixed hourly rates and material at cost or at some bid percentage discount from manufacturer's catalog or list prices
TRADEOFF PROCESS
In a negotiated acquisition, a procedure that permits consideration of tradeoffs among cost or price and non-cost factors and allows the Government to accept other than the lowest priced proposal. The perceived benefits of the higher priced proposal must merit the additional cost and the rationale must for tradeoffs must be documented in the contract file.
TRIAL BALLOON
A tentative plan offered to test the reaction of a particular audience.
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UNALLOWABLE COST
Any cost which, under the provisions of any pertinent law, regulation, or contract, cannot be included in prices, cost-reimbursements, or settlements under a Government contract to which it is allocable.
UNSOLICITED PROPOSAL
A written proposal for a new or innovative idea that is submitted to an agency on the initiative of the offeror for the purpose of obtaining a contract with the government and that is not in response to a RFP (request for proposal), Broad Agency Announcement or any other government initiated solicitation or program
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VALUE ADDED RESELLER (VAR)
A company that adds features or services to an existing product, then resells it (usually to end-users) as an integrated product or complete “turn-key" solution. This practice occurs commonly in the electronics industry, where, for example, a VAR might bundle a software application with supplied hardware
VALUE ENGINEERING (VE)
A systematic method to improve the “value" of goods or products and services by using an examination of function
VALUE ENGINEERING CHANGE PROPOSAL (VECP)
Post-award value engineering proposals made by construction contractors during the course of construction under a value engineering clause in the contract
VARIABLE COST
In cost-volume-profit analysis, costs of each unit that remain constant no matter how many units are made in the relevant range of production. Total variable cost increases as the total number of units produced increases.
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WAGE DETERMINATIONS ONLINE
The official source for federal contracting agencies to use when obtaining wage determinations issued by the DOL for service contracts subject to the McNamara-O'Hara Service Contract Act(SCA) and for construction contracts subject to the Davis-Bacon Act and related Acts (DBRA).
WIDE AREA WORK FLOW
A secure web based system for electronic invoicing, receipt, and acceptance.
WORK-IN-PROCESS
Material that has been released to manufacturing, engineering, design or other services under the contract and includes undelivered manufactured parts, assemblies, and products, either complete or incomplete