Government Contracting Glossary

Capture management is the disciplined process of positioning to win a specific opportunity before the RFP is released — gathering intelligence on the agency and incumbent, shaping the requirement, building the team, and developing win themes so the proposal starts from a position of strength.

Color team reviews are structured proposal-review checkpoints named by color, each with a distinct purpose. They build quality in stages — from strategy and outline (Blue/Black Hat) through draft (Pink), full review (Red), and final executive sign-off (Gold).

The incumbent is the contractor currently performing the work that is up for recompete. Incumbents enjoy advantages — relationships, institutional knowledge, and a performance record — but identifying and out-positioning them is central to winning recompetes.

A joint venture (JV) is a separate business entity formed by two or more companies to pursue and perform contracts together as a single offeror. In federal contracting, JVs are commonly used to combine capabilities and — under SBA rules — to let small firms pursue larger work.

Past performance is the record of how well a contractor performed on prior, relevant contracts. It is a standard evaluation factor in federal source selection — demonstrating quality, reliability, and relevance can be the deciding edge in a best-value award.

The prime contractor holds the contract directly with the government and is accountable for performance. A subcontractor works for the prime, not the government, performing part of the scope. Both roles are valid paths into federal work, with different risk and reward.

A teaming agreement is a written arrangement in which two or more companies agree to pursue a specific opportunity together — typically one as prime and the others as subcontractors. It sets out roles, work share, and exclusivity for that pursuit.

A NAICS code is a six-digit number that classifies the type of work in a contract. Each code carries a small-business size standard (in revenue or employees), so the NAICS on a solicitation determines who counts as a small business for that opportunity.

A Product Service Code (PSC) is a four-character code that describes what the government is actually buying — the specific product, service, or research. While NAICS classifies the industry, the PSC pinpoints the deliverable, making it a precise filter for finding relevant opportunities and spend.

CMMC is the Department of Defense's framework for verifying that contractors meet required cybersecurity standards before handling sensitive defense information. Depending on the data involved, contractors must demonstrate a specific CMMC level — sometimes verified by a third-party assessment.

The DFARS is the Department of Defense's supplement to the FAR, adding defense-specific acquisition rules and clauses. It governs DoD-unique requirements such as cybersecurity safeguards, specialty metals, and supply-chain provisions.

The Federal Acquisition Regulation (FAR) is the primary rulebook governing how U.S. federal agencies buy goods and services. It standardizes the procurement process — from solicitation and contract types to clauses and disputes — and applies across the executive branch.

FedRAMP (the Federal Risk and Authorization Management Program) is the government-wide program that standardizes security assessment and authorization for cloud products and services. A cloud offering must achieve FedRAMP authorization to be used by federal agencies.

A federal contract buys goods or services for the government's direct use, while a federal grant provides funding to support a public purpose with no direct deliverable to the government. Contracts are acquisitions under the FAR; grants are financial assistance under different rules.

The micro-purchase threshold is the dollar limit below which the government can buy goods or services with minimal process — often using a government purchase card — without competition or many standard requirements. For most purchases it is generally $10,000.

The simplified acquisition threshold (SAT) is the dollar ceiling below which agencies can use streamlined simplified acquisition procedures instead of full competition. For most purchases it is generally $250,000, and buys under the SAT are reserved for small businesses when conditions are met.

A Blanket Purchase Agreement (BPA) is a simplified method for filling anticipated, repetitive needs by setting up a 'charge account' with one or more vendors. The agency negotiates terms up front, then places orders ('calls') against the BPA as needs arise.

A delivery order is an order for supplies or products placed against an existing indefinite-delivery contract such as an IDIQ or GSA Schedule. The base contract sets pricing and terms; the delivery order specifies the items, quantity, and delivery.

Firm-fixed-price (FFP) and cost-plus are two families of contract types that determine who bears cost risk. Under FFP, the contractor is paid a set price regardless of actual cost. Under cost-plus (cost-reimbursement), the government reimburses allowable costs plus a fee, taking on more risk.

The GSA Schedule — officially the Multiple Award Schedule (MAS) — is a government-wide catalog of pre-negotiated commercial products and services that any federal agency can buy from. Holding a Schedule contract makes it far easier for agencies to purchase from your firm.

A GWAC is a pre-competed, multiple-award IDIQ contract for information technology that any federal agency can use to buy IT solutions. Examples include GSA's Alliant and 8(a) STARS vehicles, which streamline IT acquisition government-wide.

An IDIQ (Indefinite Delivery/Indefinite Quantity) contract provides for an indefinite quantity of supplies or services over a fixed period. The agency awards the IDIQ to one or more vendors, then issues task or delivery orders against it as needs arise.

A task order is an order for services issued under an existing IDIQ or other indefinite-delivery contract. The base contract sets the ceiling and terms; each task order defines the specific work, funding, and period of performance.

A time-and-materials (T&M) contract pays the contractor at fixed hourly labor rates plus the cost of materials. It is used when the scope or duration of work cannot be estimated accurately at award, so neither a fixed price nor a cost estimate is practical.

Best value is a source-selection approach in which the government may award to other than the lowest-priced offer when a higher-rated proposal's benefits justify the additional cost. Non-price factors — like technical approach and past performance — are weighed against price.

A combined synopsis/solicitation is a single SAM.gov notice that serves as both the public announcement of a requirement and the solicitation itself, letting agencies issue and solicit an opportunity at once. It is most often used for commercial items under FAR Part 12 to speed up the process.

A debriefing is the government's explanation to an offeror of why its proposal was or was not selected. A timely requested debriefing gives insight into the evaluation, helps you improve future bids, and can preserve and extend protest deadlines.

A bid protest is a formal challenge to the terms of a solicitation or the award of a contract. The Government Accountability Office (GAO) is the most common forum; an interested party can file to argue the agency violated procurement law or treated offerors unfairly.

An invitation for bid (IFB) is a solicitation used in sealed bidding, where the government awards a firm-fixed-price contract to the lowest responsive, responsible bidder. There are no negotiations or proposals — price is the deciding factor as long as the bidder meets the requirements.

LPTA is a source-selection method where the government awards to the lowest-priced offer that meets the minimum technical requirements. Once an offer is judged technically acceptable, there is no extra credit for being better — only price decides among acceptable offers.

The period of performance (PoP) is the timeframe during which a contractor must perform the work, including a base period and any option periods. It defines start and end dates and signals when a contract may be recompeted.

The place of performance is the geographic location where contract work will be carried out. It affects labor rates, eligibility for certain set-asides (like HUBZone), travel costs, and whether your firm is well positioned to perform.

A presolicitation notice announces that a government solicitation is coming and summarizes the upcoming requirement — the agency, scope, NAICS, set-aside, and expected dates — so vendors can prepare before the formal RFP is released.

A Performance Work Statement (PWS) describes a requirement in terms of measurable outcomes and performance standards rather than detailed step-by-step methods. It tells the contractor what results to achieve and lets the contractor decide how to achieve them.

A request for information (RFI) is a market-research tool the government uses to gather information from industry about capabilities, pricing approaches, or solutions before deciding how to buy. An RFI is not a solicitation and does not lead directly to an award.

A request for proposal (RFP) is a solicitation in which the government asks vendors to submit detailed technical and price proposals for a negotiated contract. The agency evaluates proposals against stated criteria and typically makes a best-value award rather than picking the lowest price automatically.

A request for quotation (RFQ) is a solicitation in which the government asks vendors to quote a price for goods or services, usually for commercial items or buys under simplified acquisition procedures. A quote is an offer the government may accept, but technically it is not a binding offer in the way a bid is.

A sole source contract is awarded to a single vendor without full competition, usually because only one firm can meet the need or a statutory authority allows it. Certain programs — like 8(a), HUBZone, SDVOSB, and WOSB — also permit sole-source awards up to defined dollar thresholds.

A Statement of Objectives (SOO) is a brief document that states the government's high-level goals for a requirement and asks offerors to propose their own solution and performance work statement. It shifts the burden of defining the approach to industry.

A sources sought notice is a market-research request the government posts before a solicitation to find capable vendors and shape the upcoming requirement. It is not a request for proposals — there is no award — but responding well can influence the eventual solicitation and signal a potential set-aside.

A Statement of Work (SOW) is the part of a solicitation that defines the specific tasks, deliverables, and requirements a contractor must perform. Unlike a performance-based PWS, a traditional SOW prescribes how the work is to be done.

The 8(a) program is a nine-year SBA business-development program for firms owned by socially and economically disadvantaged individuals. Participants can compete for 8(a) set-aside contracts and receive sole-source awards up to defined thresholds, plus mentoring and capacity-building support.

An EDWOSB is a women-owned small business whose owners also meet SBA's economic-disadvantage criteria — limits on personal net worth, income, and assets. EDWOSBs qualify for set-asides in more NAICS industries than WOSBs.

HUBZone is an SBA program for small businesses located in Historically Underutilized Business Zones that employ residents of those areas. Certified HUBZone firms can compete on HUBZone set-asides and sole-source awards and receive a price-evaluation preference in full competitions.

The SBA Mentor-Protégé Program lets an experienced mentor firm provide business and technical assistance to a small-business protégé. Its biggest benefit: an approved mentor and protégé can form a joint venture to pursue set-aside contracts without the mentor's size disqualifying the team.

An SDVOSB is a small business at least 51% owned and controlled by one or more service-disabled veterans. SDVOSBs can compete on set-aside and sole-source contracts reserved for service-disabled veteran-owned firms across the federal government.

A set-aside is a contract reserved exclusively for a specific category of business — most often small businesses, or sub-categories like 8(a), WOSB, SDVOSB, or HUBZone — so that only qualifying firms may compete.

A small business size standard is the maximum size a firm can be — measured in average annual revenue or number of employees — and still qualify as 'small' for a given NAICS code. SBA sets a size standard for every NAICS code, and the standard on a solicitation's NAICS decides who counts as small.

A VOSB is a small business at least 51% owned and controlled by one or more veterans. VOSB status can qualify a firm for veteran set-aside opportunities, most prominently at the Department of Veterans Affairs under its Veterans First program.

A WOSB is a small business that is at least 51% owned and controlled by one or more women who are U.S. citizens. The WOSB Federal Contracting Program lets agencies set aside contracts in industries where women-owned firms are underrepresented.

A CAGE code (Commercial and Government Entity code) is a five-character identifier assigned to entities doing business with the U.S. government. It identifies a specific facility location and is used for contracting, logistics, and payment.

CPARS is the federal system where agencies record formal evaluations of a contractor's performance on contracts. These ratings feed into past-performance assessments on future bids, so a strong CPARS record is a real competitive asset.

The DUNS number was a nine-digit identifier issued by Dun & Bradstreet that the federal government formerly used to identify contractors. It was retired for federal awards in April 2022 and replaced by the SAM.gov-assigned Unique Entity ID (UEI).

FPDS (the Federal Procurement Data System) is the government's official database of federal contract actions. It records details on awards — who won, the agency, dollar value, NAICS, PSC, set-aside type, and competition — making it the primary source for procurement spend analysis.

SAM.gov (the System for Award Management) is the U.S. government's official site for two things: registering as a federal contractor (entity registration) and finding federal contract opportunities. A vendor must have an active SAM.gov registration with a UEI to be eligible for award.

The Unique Entity ID (UEI) is a 12-character alphanumeric identifier assigned in SAM.gov that uniquely identifies an organization doing business with the federal government. It replaced the DUNS number as the official entity identifier in April 2022.

USAspending.gov is the official, public source for U.S. federal spending data, covering contracts, grants, loans, and other assistance. It lets anyone see where federal money goes — by agency, recipient, program, place of performance, and more.