Glossary

Government contracting is full of acronyms. Here is what the common ones mean.

8

8(a) Business Development Program 8(a): An SBA program that helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts. Participation is time-limited, and the program allows certain contracts to be set aside or awarded sole-source to participants.

A

Amendment: An official change to a solicitation issued by the agency before offers are due. Amendments may revise requirements, answer vendor questions, or extend the deadline. Vendors are usually required to acknowledge amendments in their offer.
Award: The point at which the government formally selects a vendor and establishes a contract for the work. Award notices are published so that vendors and the public can see who won and, often, the value of the contract.

B

Blanket Purchase Agreement BPA: A simplified arrangement that lets an agency place repeated orders for supplies or services from a vendor without writing a new contract each time. It establishes terms in advance to streamline recurring purchases.

C

CAGE Code CAGE: The Commercial and Government Entity code, a five-character identifier assigned to businesses that do work with the U.S. government. It is generated as part of registering in SAM.gov.
Capability Statement: A short marketing document a business uses to summarize its core competencies, past performance, key personnel, certifications, and identifiers (such as UEI and NAICS codes). Agencies often request one in response to Sources Sought notices.
Cognizant Agency: The federal agency assigned responsibility for overseeing certain shared matters for an organization, such as negotiating indirect cost rates or coordinating audits, so that one agency handles them on behalf of others.

D

Defense Federal Acquisition Regulation Supplement DFARS: A supplement to the FAR that adds rules specific to Department of Defense acquisitions. DOD solicitations apply both the FAR and DFARS, including DFARS requirements such as cybersecurity clauses.

F

Federal Acquisition Regulation FAR: The primary set of rules governing how federal agencies buy goods and services. It standardizes the acquisition process across the government, and most solicitations cite specific FAR clauses.

G

Governmentwide Acquisition Contract GWAC: A pre-competed, multiple-award contract vehicle for information technology that any federal agency can use to buy IT solutions, avoiding the need to run a full competition from scratch.

H

HUBZone: An SBA program for small businesses located in Historically Underutilized Business Zones that also employ a required percentage of residents from those areas. Certified firms can compete for HUBZone set-aside contracts and may receive a price evaluation preference.

I

Incumbent: The contractor currently performing the work under an existing contract. When that contract is recompeted, the incumbent often has an advantage due to its experience, but it is not guaranteed to win the follow-on award.
Indefinite Delivery/Indefinite Quantity IDIQ: A contract type used when the exact quantities or delivery dates are not known in advance. It sets minimum and maximum limits, and the agency orders supplies or services as needed through task or delivery orders during the contract period.
Invitation for Bid IFB: A solicitation used in sealed bidding where award is based primarily on price and other price-related factors. Bids are opened publicly, and the contract typically goes to the lowest responsive, responsible bidder.

M

Market Research: The process an agency uses to gather information about available products, services, and capable vendors before issuing a solicitation. Tools like RFIs and Sources Sought notices are common market-research methods. Sometimes called a market survey.
Multiple Award Contract MAC: A contract approach in which the government awards the same base contract to several vendors. Specific work is then competed among those awardees through individual task or delivery orders.

N

Non-Disclosure Agreement NDA: A legal agreement in which parties agree to keep shared information confidential. In contracting, NDAs are common between primes and subcontractors, or when sensitive government information is involved.
North American Industry Classification System NAICS: The standard system of numeric codes used to classify businesses by industry. Agencies assign a NAICS code to each contract opportunity, and the code helps determine small-business size standards for that work.

O

Option Year: An additional period of performance the government may choose to exercise to extend a contract beyond its base period, under terms already agreed upon. Options are at the government's discretion and are not guaranteed.

P

Past Performance: A record of how well a contractor performed on previous contracts. Agencies often evaluate past performance as part of award decisions and may verify it through references or government rating systems.
Performance Work Statement PWS: A document that describes the work in terms of measurable performance outcomes and standards rather than dictating exactly how to do the work. It is associated with performance-based contracting.
Period of Performance PoP: The window of time during which a contractor is expected to perform the work, defined by a start and end date. It may include a base period and one or more option periods.
Pre-Solicitation: An advance notice that an agency intends to issue a solicitation soon. It gives industry time to prepare and may share draft requirements, but no proposals or quotes are submitted at this stage.
Prime Contractor: The business that holds the contract directly with the government and is ultimately responsible for delivering the work. A prime may perform the work itself or use subcontractors to help fulfill the contract.
Procurement Integrated Enterprise Environment PIEE: A federal platform that brings together many procurement-related systems and applications, such as contract management and invoicing, into a single sign-on environment used widely across the Department of Defense and other agencies.

R

Request for Information RFI: A notice used to gather information from industry, often to help an agency plan an acquisition or refine requirements. An RFI is not a solicitation, and submitting a response does not commit you to bid or result in an award.
Request for Proposal RFP: A formal solicitation in which an agency asks vendors to submit detailed proposals to perform work. Proposals are typically evaluated on factors beyond price, such as technical approach and past performance. Responding usually means you intend to compete for the actual contract.
Request for Quote RFQ: A solicitation in which an agency asks vendors to submit a price quote for clearly defined supplies or services. RFQs are common for simpler or lower-dollar purchases where price is a major factor.

S

SAM.gov: The System for Award Management, the U.S. government's official website where businesses register to do business with the federal government and where many contract opportunities are posted. Registration is generally required before receiving a federal award.
Service-Disabled Veteran-Owned Small Business SDVOSB: An SBA program for small businesses at least 51% owned and controlled by one or more service-disabled veterans. Certified firms can compete for set-aside and sole-source contracts reserved for this group.
Set-Aside: A contract or portion of a contract reserved for competition among a specific group of businesses, most commonly small businesses or a particular socioeconomic category. Only businesses that qualify for that group may compete for a set-aside.
Small Business Administration SBA: The federal agency that supports small businesses, including by setting small-business size standards and administering contracting programs such as 8(a), HUBZone, WOSB, and SDVOSB.
Sole Source: An award made to a single vendor without full and open competition, typically because only one source can reasonably meet the need or a program allows it. Sole-source awards must meet specific justification requirements.
Solicitation: The official document an agency uses to request offers from vendors for a contract. RFPs, RFQs, and Invitations for Bid are all types of solicitations. It contains the requirements, instructions, terms, and how offers will be evaluated.
Sources Sought: A market-research notice, not a solicitation. The agency is gauging which businesses can perform the work, often to decide whether to set the contract aside for small businesses. Responding does not commit you to bid, and no contract is awarded from it. Often labeled 'THIS IS NOT AN RFP'.
Statement of Objectives SOO: A brief document that states the agency's high-level goals and desired outcomes, leaving it to vendors to propose how the work should be performed. Vendors often respond by writing their own PWS.
Statement of Work SOW: A document that defines the specific tasks, deliverables, and requirements a contractor must complete. It typically prescribes the work to be performed in detail.
Subcontractor: A business hired by the prime contractor to perform part of the work on a government contract. Subcontractors have a contract with the prime, not directly with the government.

U

Unique Entity Identifier UEI: A 12-character alphanumeric identifier assigned to each entity registered in SAM.gov. The UEI replaced the older DUNS number as the government's standard way to identify businesses.

W

Woman-Owned Small Business WOSB: An SBA program that helps small businesses at least 51% owned and controlled by women compete for set-aside contracts in industries where women-owned firms are underrepresented. A related category, EDWOSB, covers economically disadvantaged women-owned small businesses.

Glossary

Government contracting is full of acronyms. Here is what the common ones mean.

8

8(a) Business Development Program 8(a): An SBA program that helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts. Participation is time-limited, and the program allows certain contracts to be set aside or awarded sole-source to participants.

A

Amendment: An official change to a solicitation issued by the agency before offers are due. Amendments may revise requirements, answer vendor questions, or extend the deadline. Vendors are usually required to acknowledge amendments in their offer.
Award: The point at which the government formally selects a vendor and establishes a contract for the work. Award notices are published so that vendors and the public can see who won and, often, the value of the contract.

B

Blanket Purchase Agreement BPA: A simplified arrangement that lets an agency place repeated orders for supplies or services from a vendor without writing a new contract each time. It establishes terms in advance to streamline recurring purchases.

C

CAGE Code CAGE: The Commercial and Government Entity code, a five-character identifier assigned to businesses that do work with the U.S. government. It is generated as part of registering in SAM.gov.
Capability Statement: A short marketing document a business uses to summarize its core competencies, past performance, key personnel, certifications, and identifiers (such as UEI and NAICS codes). Agencies often request one in response to Sources Sought notices.
Cognizant Agency: The federal agency assigned responsibility for overseeing certain shared matters for an organization, such as negotiating indirect cost rates or coordinating audits, so that one agency handles them on behalf of others.

D

Defense Federal Acquisition Regulation Supplement DFARS: A supplement to the FAR that adds rules specific to Department of Defense acquisitions. DOD solicitations apply both the FAR and DFARS, including DFARS requirements such as cybersecurity clauses.

F

Federal Acquisition Regulation FAR: The primary set of rules governing how federal agencies buy goods and services. It standardizes the acquisition process across the government, and most solicitations cite specific FAR clauses.

G

Governmentwide Acquisition Contract GWAC: A pre-competed, multiple-award contract vehicle for information technology that any federal agency can use to buy IT solutions, avoiding the need to run a full competition from scratch.

H

HUBZone: An SBA program for small businesses located in Historically Underutilized Business Zones that also employ a required percentage of residents from those areas. Certified firms can compete for HUBZone set-aside contracts and may receive a price evaluation preference.

I

Incumbent: The contractor currently performing the work under an existing contract. When that contract is recompeted, the incumbent often has an advantage due to its experience, but it is not guaranteed to win the follow-on award.
Indefinite Delivery/Indefinite Quantity IDIQ: A contract type used when the exact quantities or delivery dates are not known in advance. It sets minimum and maximum limits, and the agency orders supplies or services as needed through task or delivery orders during the contract period.
Invitation for Bid IFB: A solicitation used in sealed bidding where award is based primarily on price and other price-related factors. Bids are opened publicly, and the contract typically goes to the lowest responsive, responsible bidder.

M

Market Research: The process an agency uses to gather information about available products, services, and capable vendors before issuing a solicitation. Tools like RFIs and Sources Sought notices are common market-research methods. Sometimes called a market survey.
Multiple Award Contract MAC: A contract approach in which the government awards the same base contract to several vendors. Specific work is then competed among those awardees through individual task or delivery orders.

N

Non-Disclosure Agreement NDA: A legal agreement in which parties agree to keep shared information confidential. In contracting, NDAs are common between primes and subcontractors, or when sensitive government information is involved.
North American Industry Classification System NAICS: The standard system of numeric codes used to classify businesses by industry. Agencies assign a NAICS code to each contract opportunity, and the code helps determine small-business size standards for that work.

O

Option Year: An additional period of performance the government may choose to exercise to extend a contract beyond its base period, under terms already agreed upon. Options are at the government's discretion and are not guaranteed.

P

Past Performance: A record of how well a contractor performed on previous contracts. Agencies often evaluate past performance as part of award decisions and may verify it through references or government rating systems.
Performance Work Statement PWS: A document that describes the work in terms of measurable performance outcomes and standards rather than dictating exactly how to do the work. It is associated with performance-based contracting.
Period of Performance PoP: The window of time during which a contractor is expected to perform the work, defined by a start and end date. It may include a base period and one or more option periods.
Pre-Solicitation: An advance notice that an agency intends to issue a solicitation soon. It gives industry time to prepare and may share draft requirements, but no proposals or quotes are submitted at this stage.
Prime Contractor: The business that holds the contract directly with the government and is ultimately responsible for delivering the work. A prime may perform the work itself or use subcontractors to help fulfill the contract.
Procurement Integrated Enterprise Environment PIEE: A federal platform that brings together many procurement-related systems and applications, such as contract management and invoicing, into a single sign-on environment used widely across the Department of Defense and other agencies.

R

Request for Information RFI: A notice used to gather information from industry, often to help an agency plan an acquisition or refine requirements. An RFI is not a solicitation, and submitting a response does not commit you to bid or result in an award.
Request for Proposal RFP: A formal solicitation in which an agency asks vendors to submit detailed proposals to perform work. Proposals are typically evaluated on factors beyond price, such as technical approach and past performance. Responding usually means you intend to compete for the actual contract.
Request for Quote RFQ: A solicitation in which an agency asks vendors to submit a price quote for clearly defined supplies or services. RFQs are common for simpler or lower-dollar purchases where price is a major factor.

S

SAM.gov: The System for Award Management, the U.S. government's official website where businesses register to do business with the federal government and where many contract opportunities are posted. Registration is generally required before receiving a federal award.
Service-Disabled Veteran-Owned Small Business SDVOSB: An SBA program for small businesses at least 51% owned and controlled by one or more service-disabled veterans. Certified firms can compete for set-aside and sole-source contracts reserved for this group.
Set-Aside: A contract or portion of a contract reserved for competition among a specific group of businesses, most commonly small businesses or a particular socioeconomic category. Only businesses that qualify for that group may compete for a set-aside.
Small Business Administration SBA: The federal agency that supports small businesses, including by setting small-business size standards and administering contracting programs such as 8(a), HUBZone, WOSB, and SDVOSB.
Sole Source: An award made to a single vendor without full and open competition, typically because only one source can reasonably meet the need or a program allows it. Sole-source awards must meet specific justification requirements.
Solicitation: The official document an agency uses to request offers from vendors for a contract. RFPs, RFQs, and Invitations for Bid are all types of solicitations. It contains the requirements, instructions, terms, and how offers will be evaluated.
Sources Sought: A market-research notice, not a solicitation. The agency is gauging which businesses can perform the work, often to decide whether to set the contract aside for small businesses. Responding does not commit you to bid, and no contract is awarded from it. Often labeled 'THIS IS NOT AN RFP'.
Statement of Objectives SOO: A brief document that states the agency's high-level goals and desired outcomes, leaving it to vendors to propose how the work should be performed. Vendors often respond by writing their own PWS.
Statement of Work SOW: A document that defines the specific tasks, deliverables, and requirements a contractor must complete. It typically prescribes the work to be performed in detail.
Subcontractor: A business hired by the prime contractor to perform part of the work on a government contract. Subcontractors have a contract with the prime, not directly with the government.

U

Unique Entity Identifier UEI: A 12-character alphanumeric identifier assigned to each entity registered in SAM.gov. The UEI replaced the older DUNS number as the government's standard way to identify businesses.

W

Woman-Owned Small Business WOSB: An SBA program that helps small businesses at least 51% owned and controlled by women compete for set-aside contracts in industries where women-owned firms are underrepresented. A related category, EDWOSB, covers economically disadvantaged women-owned small businesses.