Federal contracting terms, A–Z

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8(a) Business Development Program

The 8(a) Business Development Program is an SBA program for small businesses that are at least 51% owned and run by socially and economically disadvantaged U.S. citizens. Firms stay in it for up to nine years. Agencies can set contracts aside for 8(a) firms or award them sole source, which makes an 8(a) certification one of the fastest routes into federal work. Procura shows 8(a) set-asides and sole-source awards on contract pages.

Source: 15 U.S.C. 637(a); 13 CFR part 124; FAR subpart 19.8

8(a) sole source

An 8(a) sole-source award goes directly to one 8(a) firm without competition, under thresholds set by rule. Above $30 million at civilian agencies and $100 million at Defense, the agency must also write and post a justification. Agencies use 8(a) sole source to award quickly, so a firm that markets to the right program offices can win work without a bid. Contract records show it as "8(a) sole source".

Source: FAR 19.805-1; FAR 6.303-1(b) (FAC 2025-06); DFARS 206.303-1

A

Acquisition

In federal use, acquisition means getting supplies or services by contract with appropriated funds. It runs from defining the need through solicitation, award, performance and closeout. It is broader than procurement, which often means only the buying step. Contracting staff are the "acquisition workforce", and acquisition plans are written long before a solicitation appears.

Source: FAR 2.101

Action date

The action date is the date a contract action, such as an award, order or modification, was signed. It decides which fiscal year the obligated money counts in, even when the work happens later. A contract signed on September 29 counts in the fiscal year ending the next day. Procura assigns every dollar to a fiscal year by its action date.

Affiliation

Affiliation is the rule that linked companies count as one when the government measures small-business size. Companies are linked when one controls the other or they share an owner. Control can come from ownership, management, shared officers, family ties or heavy economic dependence. A firm that looks small on its own may be large once affiliates are counted, which can lose it a set-aside award after a size protest.

Source: 13 CFR 121.103

Alaska Native Corporation (ANC) and tribal 8(a) firms

Companies owned by Alaska Native Corporations (ANCs), Indian tribes and Native Hawaiian Organizations can join the 8(a) program under special rules. They can receive sole-source awards above the normal 8(a) limits, with a posted justification for large awards, and the parent can own several 8(a) firms in different lines of work. They are frequent primes and teammates on large federal programs.

Source: 13 CFR 124.109-124.111; 13 CFR 124.506

Appropriation

An appropriation is a law passed by Congress that lets agencies obligate and spend money for set purposes during a set period. Twelve regular appropriations bills fund the government each year; each divides money into accounts such as Procurement or Operation and Maintenance. Contracts can only be funded from available appropriations, so a delayed bill slows awards. Procura's congressional adds pages follow defense appropriations line by line.

Source: U.S. Const. art. I, sec. 9; 31 U.S.C. 1301

Award Notice

An Award Notice is a public announcement, posted after a contract is signed, that names the winner, the amount and the date. Agencies post them for most contracts above a set dollar level, and Defense announces its largest awards daily. They show who is winning in a market and which incumbents will face a recompete when the work ends.

Source: FAR 5.301

See also: Solicitation, Recompete, Incumbent

Awarding office

The awarding office is the contracting office that ran the competition and signed the contract. It is where the contracting officer works, so it is the office to watch for future notices and the one that answers questions during a bid. Large buying commands award for many customers, so the awarding office and the funding office often differ. Contract pages in Procura show both.

Source: FAR 4.604

B

BAA (broad agency announcement)

A BAA (broad agency announcement) is an open call for research and development ideas in broad topic areas. Instead of buying a defined product, the agency reviews each proposal on its own merit and funds the best ideas, often through contracts, grants or other transactions. BAAs can stay open for a year or more, so they are a standing way into research work. Procura lists BAAs with the other open notices.

Source: FAR 2.101; FAR 35.016

Basic ordering agreement (BOA)

A basic ordering agreement (BOA) sets terms, clauses and pricing methods for future orders but is not itself a contract. Each order placed under it becomes a contract on its own. Defense uses BOAs heavily for spare parts and repairs on systems a company already supports.

Source: FAR 16.703

Best-value tradeoff

A best-value tradeoff lets the government pick an offer that is not the cheapest. It does so when better technical merit or past performance is worth the extra cost. The solicitation must say how important price is compared with the other factors. Winning a tradeoff means showing strengths the evaluators can name and value.

Source: FAR 15.101-1

Bid protest

A bid protest is a formal objection to the terms of a solicitation or to an award decision. It can be filed with the agency, the Government Accountability Office (GAO) or the U.S. Court of Federal Claims. GAO deadlines are short, usually 10 days from when the grounds were known, and GAO decides within 100 days. A timely protest at GAO can pause performance of the contract.

Source: FAR 33.103-33.104; 4 CFR part 21; 31 U.S.C. 3551-3556

C

CAGE code

A CAGE (Commercial and Government Entity) code is a 5-character code that identifies one company location doing federal work. It is assigned when the company registers, and each separate site gets its own code. Defense contracts, security paperwork and parts records use it, so buyers and primes often ask for it first. Company profiles in Procura list every CAGE code we hold, and the CAGE lookup finds the company behind a code.

Source: FAR subpart 4.18

Look up a CAGE code

Capability statement

A capability statement is a one- or two-page document that tells a government buyer what your company does. It lists core capabilities, past performance, differentiators, NAICS codes, UEI, CAGE code and contacts. Small-business offices and contracting officers ask for it in market research and after meetings. Procura also reads your capability statements to rate how well you fit each opportunity.

Capture management

Capture management is the work a company does to win one specific contract before the request for proposals comes out. It includes learning the customer's needs, shaping requirements, building the team and setting a price to win. Most competitive awards are decided by the quality of capture, so it starts months or years ahead of the proposal.

Ceiling (potential value)

A ceiling is the most a contract can be worth if the government uses every option. Records call it the base-and-all-options value or the potential value. On a contract vehicle, the ceiling caps the total of all orders placed under it. The gap between the ceiling and what has been obligated shows how much room is left. Contract and vehicle pages in Procura show both numbers side by side.

Source: FAR 16.504(a); FAR 17.204

Certified cost or pricing data (TINA)

Certified cost or pricing data is detailed cost information a contractor must certify as current, accurate and complete. The Truthful Cost or Pricing Data Act (TINA) requires it before certain prices are agreed. It is required mainly on non-competitive contracts and modifications over $2.5 million, the threshold since October 1, 2025. If the data turn out to be defective, the government can reduce the price.

Source: FAR 15.403-4 (FAC 2025-06); 10 U.S.C. 3702; 41 U.S.C. 3502

Change order

A change order is a written order from the contracting officer that changes work within the contract's scope. It can change drawings, delivery method or place of delivery, and the contractor need not agree. The contractor must comply, and is entitled to an equitable adjustment in price or schedule if the change affects cost or time. Ask for the adjustment in writing promptly.

Source: FAR 43.201; FAR 52.243-1

CLIN (contract line item number)

A CLIN (contract line item number) is a numbered line in a contract for one priced item or service. For example, 0001 might be base-year labor. Options get their own CLINs, and sublines (SLINs) split a CLIN further. Prices, funding and invoices are all tracked by CLIN, so the CLIN structure dictates how you build and present your price.

Source: FAR subpart 4.10

CMMC (Cybersecurity Maturity Model Certification)

CMMC (Cybersecurity Maturity Model Certification) is the Defense program that verifies contractors protect the information they hold. Level 1 covers basic safeguarding of federal contract information, Level 2 adds the 110 requirements of NIST SP 800-171 for controlled unclassified information, and Level 3 adds more for the most sensitive programs. Defense solicitations now state the required level, and a company without it cannot win the award.

Source: 32 CFR part 170; DFARS 252.204-7021

Color of money

Color of money is shorthand for the rule that each appropriation can be used only for the purpose and time period Congress set. Research money cannot buy production units, and one-year O&M money cannot fund a three-year buy. For contractors it explains why a customer who wants your product may still be unable to pay for it this year: it may have the wrong color of money.

Source: 31 U.S.C. 1301(a); 31 U.S.C. 1502

Combined Synopsis/Solicitation

A Combined Synopsis/Solicitation is one notice that both announces a purchase and asks for offers. Agencies use it for commercial products and services, which lets them skip the separate advance notice and give shorter response times. That means less warning, so these notices reward companies that watch for them daily. Procura shows them with the other open opportunities and their response deadline.

Source: FAR 12.603

Commercial product or service

A commercial product or commercial service is one of a type sold or offered to the general public, or a minor change to one. When the government agrees an item is commercial, it buys under FAR Part 12, with simpler terms, fewer clauses and usually no certified cost data. Getting a "commercial item determination" can make a company much easier to buy from.

Source: FAR 2.101; FAR Part 12

Commercial solutions opening (CSO)

A commercial solutions opening (CSO) is a competitive call for innovative commercial technologies or services. Instead of writing a detailed specification, the agency describes a need, reviews short solution briefs or pitches, and can award a contract or other transaction to the best ideas. Defense and Homeland Security use CSOs to reach companies that do not usually sell to government.

Source: 10 U.S.C. 3458

Company group

A company can hold more than one government registration, for example one per location. Within a parent company's family, registrations with the same legal name form a company group. The group sits between the parent company and its individual registrations.

D

Davis-Bacon Act

The Davis-Bacon Act sets minimum pay on federal construction contracts over $2,000. Laborers and mechanics must get at least the local prevailing wages and fringe benefits, and contractors file certified weekly payrolls. The wage determination in the solicitation sets the labor floor for construction bids.

Source: 40 U.S.C. 3141-3148; FAR subpart 22.4

DCAA (Defense Contract Audit Agency)

The Defense Contract Audit Agency (DCAA) checks the costs that Defense contractors bill and propose. It audits proposals, accounting systems, overhead rates and incurred costs, mostly on cost-type contracts. Before a company can win a cost-type contract, its accounting system must be adequate to track costs by contract. Passing a DCAA review is a common gate when a small firm moves into larger Defense work.

Source: DoD Directive 5105.36

DCMA (Defense Contract Management Agency)

The Defense Contract Management Agency (DCMA) manages Defense contracts after award. Its administrative contracting officers approve payments, check quality at contractor sites, oversee government property and review contractor business systems. Many Defense contracts name a DCMA office as the administration office, and that office becomes the contractor's daily point of contact once work starts.

Source: DoD Directive 5105.64; FAR 42.302

Debriefing

A debriefing is the government's explanation of how it evaluated your proposal. It covers strengths, weaknesses, the winner's price and overall ratings, and the reason for the award. To get the required one after a negotiated award, ask in writing within three days of the notice. It is the best free lesson for the next bid and starts the clock for some protests.

Source: FAR 15.505-15.506

Definitive contract

A definitive contract is a stand-alone contract with its price, scope and terms settled when it is signed. It is not an order under a vehicle and not a vehicle itself. Large single programs, construction jobs and many research projects are bought this way. Contract records mark the award type of every action.

Delivery order

A delivery order is an order for goods placed under a contract that is already in place, such as an IDIQ, Schedule or basic ordering agreement. It names the items, quantities, price and delivery date, and money is obligated on the order. Supply-focused companies earn most of their vehicle revenue through delivery orders. Procura lists delivery orders with the other orders under each vehicle.

Source: FAR 2.101; FAR 16.505

Deobligation

A deobligation removes money that was obligated on a contract, recorded as a negative amount on a modification. It happens when work costs less than planned, scope is cut, a contract is terminated or funds are closed out at the end. Deobligated money may be reused only if its period of availability has not ended. Large negative amounts on a contract's history in Procura usually mean descoping or closeout.

Source: GAO-05-734SP, A Glossary of Terms Used in the Federal Budget Process

Department (top-tier agency)

A department is a top-level federal agency, such as the Department of Defense. Independent agencies at the same level, such as NASA, count too. Departments set budgets and policy, while their subagencies and offices do the buying. Totals for a department add up everything its subagencies award. Procura has a page for each department, with its subagencies, offices and top contractors.

Browse agencies

DFARS

The DFARS (Defense Federal Acquisition Regulation Supplement) adds Defense-only rules and clauses to the FAR. It covers areas such as safeguarding defense information (DFARS 252.204-7012), specialty metals, cost accounting and data rights. Every Defense contract includes DFARS clauses, and some, like the cybersecurity clause, carry costly compliance work. Read the DFARS clause list before bidding on Defense work.

Source: 48 CFR chapter 2

District lines (119th Congress)

District lines are the boundaries of the 435 congressional districts. Procura's district pages and maps use the lines of the 119th Congress, in force from 2025 to 2027. Some states use new lines from January 2027, so a site can move to another district and to a different member of Congress then. Totals by district follow today's lines, not the lines in force when the money was spent.

E

Earmark (Community Project Funding)

An earmark is money a member of Congress directs to a specific project, place or recipient instead of through the agency's normal process. Since fiscal year 2022 the House calls them Community Project Funding and the Senate calls them Congressionally Directed Spending, with each request posted publicly. Defense earmarks are a subset of congressional adds.

Source: House Rule XXI, clause 9; Senate Rule XLIV

See congressional adds

EDWOSB (economically disadvantaged women-owned small business)

An EDWOSB (economically disadvantaged women-owned small business) is a certified women-owned small business with economically disadvantaged owners. The women owners must meet limits on personal net worth, income and assets. EDWOSBs can compete for both EDWOSB and WOSB set-asides, and EDWOSB set-asides are allowed in more industries than WOSB ones. Contract records show "Economically disadvantaged women-owned small business" set-asides.

Source: 13 CFR 127.203; FAR subpart 19.15

Ending soon (expiring contract)

Ending soon marks a contract or vehicle whose current end date is less than six months away. Procura lists contracts ending within the next 18 months, flags those under six, and links any successor once one appears. An ending contract usually means a recompete, a follow-on or an extension, so it is the earliest public sign of an opening.

Entity structure

Entity structure is the legal form a company declares when it registers for federal work. Examples are a corporation, LLC, partnership, sole proprietorship, nonprofit or government body. It affects tax reporting and some eligibility rules, such as which entities can join certain set-aside programs. It does not decide size or small-business status. Company profiles in Procura show the registered entity type.

Source: FAR 52.204-7

eSRS (subcontracting report system)

eSRS (Electronic Subcontracting Reporting System) is where contractors with subcontracting plans report their small-business subcontracting. They report totals for small businesses and each small-business category. Reports are filed per contract and as a yearly summary. Agencies use them to grade primes against their plans, and a poor record can hurt the prime's past performance ratings.

Source: FAR 19.705-6; FAR 52.219-9

Evaluation factors (Section M)

Evaluation factors are the criteria the government will use to judge offers, listed with their relative importance in Section M of a solicitation. Price and quality, including past performance, must be evaluated in every source selection; technical approach and management are common others. The government may judge only on the stated factors, so they show exactly what will win.

Source: FAR 15.304; FAR 15.204-5(c)

Extent competed

Extent competed records how much competition a contract had. The values are full and open, full and open after a small-business set-aside, competed under simplified procedures, not competed, and not available for competition. Together with the number of offers received, it shows how open an agency's buying really is and how often a market has one bidder. Contract pages in Procura show it under "Competition".

F

Facility clearance (FCL)

A facility clearance (FCL) is a finding that a company may access classified information at a set level. Levels include Secret and Top Secret. A company cannot apply on its own: a government customer or a cleared prime must sponsor it for a specific classified contract. Key managers must also hold personnel clearances. Many Defense and intelligence solicitations require an FCL at award.

Source: 32 CFR part 117 (NISPOM)

Fair opportunity

Fair opportunity is the rule that each holder of a multiple-award contract gets a fair chance to compete for each order. It applies to every order above the micro-purchase threshold, now $15,000. The agency may skip it only for listed exceptions, such as urgency or a logical follow-on order, and must document why. Large orders also need a clear notice, stated evaluation factors and a debriefing on request. Procura marks "competitive delivery orders" on contract pages.

Source: FAR 16.505(b)

FAPIIS

FAPIIS (Federal Awardee Performance and Integrity Information System) records contractor integrity problems. These include terminations for default or cause, non-responsibility findings, suspensions, debarments and certain legal proceedings. Before awarding a contract above the simplified acquisition threshold, the contracting officer must review it. An entry does not bar a company, but it must be explained. Companies can post comments on their own records.

Source: FAR 9.104-6; FAR 52.209-9

FAR (Federal Acquisition Regulation)

The Federal Acquisition Regulation (FAR) is the main rulebook for how executive agencies buy goods and services. It covers planning, competition, small-business programs, contract types, pricing and the standard clauses that go into contracts. Agencies add their own supplements, such as the DFARS for Defense. Contractors refer to it by part and section, such as FAR 19 for small business.

Source: 48 CFR chapter 1

G

GovCon (government contracting)

GovCon is short for government contracting: the business of selling goods and services to government agencies under formal contracts. In federal GovCon, companies register, find opportunities, compete under the FAR and its supplements, and perform under contracts with public reporting. The term also names the industry of firms that mostly sell to government.

GSA (General Services Administration)

The General Services Administration (GSA) buys common goods and services for other agencies. It runs the Multiple Award Schedule (the GSA Schedule), several governmentwide IT contracts (GWACs) and other shared vehicles, and it manages federal buildings and fleets. A GSA Schedule contract lets any agency buy from a company without a full new competition.

Source: 40 U.S.C. 501

GSA Schedule (Multiple Award Schedule)

A GSA Schedule contract, now the Multiple Award Schedule (MAS), is a long-term contract that sets a company's prices with GSA. Any agency can then order from it without a full new competition. It lasts five years with three five-year options, up to 20 years. Holding one does not bring work by itself: the company still has to market to agencies.

Source: FAR subpart 8.4; GSAR 538

GWAC (governmentwide acquisition contract)

A GWAC (governmentwide acquisition contract) is a multiple-award IDIQ for information technology that one agency sets up and any federal agency can order from. GSA, NASA and the National Institutes of Health run the current GWACs, under approval from the Office of Management and Budget. Agencies like them because ordering is fast, so a seat on a major GWAC opens IT work across government. Procura has a vehicle page for each GWAC.

Source: FAR 2.101; FAR 16.505(a)

H

HUBZone

The HUBZone (Historically Underutilized Business Zone) program helps small businesses in economically distressed areas. A firm qualifies when its principal office is in a HUBZone and at least 35% of its employees live in one. HUBZone firms can win set-asides and sole-source awards, and get a 10% price preference in full and open competitions. The federal goal is 3% of prime contract dollars.

Source: 15 U.S.C. 657a; 13 CFR part 126; FAR subpart 19.13

I

IDIQ (indefinite delivery, indefinite quantity)

An IDIQ (indefinite delivery, indefinite quantity) contract sets prices and terms up front. The government then places task or delivery orders as needs come up, between a stated minimum and maximum. The holder is guaranteed only the minimum; everything else must be won order by order. An IDIQ can have one holder or many, and large ones run for years with ceilings in the billions. Procura has a page for each IDIQ with its holders, orders and spending.

Source: FAR 16.504

IDV (indefinite delivery vehicle)

An IDV (indefinite delivery vehicle) is the record type for any agreement that exists to take orders, rather than to buy one thing. IDIQs, GWACs, GSA Schedule contracts, blanket purchase agreements and basic ordering agreements are all IDVs. Money is obligated on the orders placed under an IDV, not on the IDV itself, so its own obligation is often zero. Procura rolls each IDV's orders up on its vehicle page.

Source: FAR 4.1603(a)(3)

IFB (invitation for bids)

An IFB (invitation for bids) is the solicitation used for sealed bidding. Bids are opened publicly at a set time, and award goes to the lowest-priced bid that meets every requirement from a responsible bidder; there are no discussions. It is common in construction. A bid that misses a requirement or arrives late is rejected, so precision matters more than persuasion.

Source: FAR Part 14

In-depth analysisNew

In-depth analysis is Procura's full review of one opportunity against your team's capability statements, past performance and certifications. It rates how well you fit, lists the requirements you meet and the gaps you would need a partner to fill, and helps you make a bid/no-bid call. It is part of the paid plans.

Incumbent

The incumbent is the company performing the work today under the current contract. It knows the customer, the staff and the real workload, so it usually has the edge when the work is recompeted. Challengers win by showing a clear improvement or a lower price, often by hiring the incumbent's staff. Contract pages in Procura name the prime and its likely follow-on.

Industry day

An industry day is a meeting where an agency briefs companies on a coming purchase: the need, schedule and approach. Many include one-on-one sessions and time to meet possible teammates. The attendee list, often posted afterward, is a ready list of competitors and partners. Industry days are announced as Special Notices.

Source: FAR 15.201(c)

Inherently governmental function

An inherently governmental function is work so tied to public authority that only federal employees may do it. Examples are awarding contracts, directing federal staff and setting policy. Contractors may support these functions, for example by drafting analysis, but may not make the final decision. Solicitations for advisory work are written around this line.

Source: FAR 2.101; FAR subpart 7.5

ISR and SSR (subcontracting reports)

The Individual Subcontract Report (ISR) shows a prime's progress against the subcontracting plan on one contract and is filed twice a year. The Summary Subcontract Report (SSR) totals a prime's small-business subcontracting across its contracts for an agency. Both are filed in eSRS and checked by contracting officers.

Source: FAR 52.219-9(l)

J

Joint venture

A joint venture (JV) is an agreement in which two or more companies bid on and perform a contract together as one offeror. For a set-aside, every partner must be small for the contract's NAICS code, unless the JV comes from an approved mentor-protege relationship. The JV agreement must name a managing venturer and divide the work and profit. JVs let small firms combine past performance to bid on larger jobs.

Source: 13 CFR 121.103(h); 13 CFR 125.8

Justification and approval (J&A)

A justification and approval (J&A) is the written case an agency must make before it awards a contract without full and open competition. Approval comes at a level set by the dollar value. It names the legal exception used and why no competition is possible. Most J&As are posted publicly within 14 days of award. Reading them shows which companies an agency treats as the only source and why.

Source: FAR 6.303-6.305

L

Likely follow-on

A likely follow-on is Procura's match for the order that continued a piece of work. We flag the same company's next order under the same vehicle when it starts within 90 days before or after the earlier order's end; the agency does not label it a follow-on. Follow-ons show whether an incumbent kept the work and how long a customer relationship lasts. Contract pages show the match under "Likely follow-on".

See also: Recompete, Incumbent, Task order

Limitations on subcontracting

The limitations on subcontracting rule keeps set-aside work with small businesses. On a services set-aside, the prime may not pay more than 50% of the amount it receives to subcontractors that are not similarly situated small firms; the limit is also 50% for supplies (not counting materials), 85% for general construction and 75% for specialty trade construction. Breaking it can bring penalties.

Source: 13 CFR 125.6; FAR 52.219-14

LPTA (lowest price technically acceptable)

LPTA (lowest price technically acceptable) is a way of choosing a winner where the cheapest acceptable offer wins. Offers are rated only acceptable or unacceptable on non-price factors. Extra technical quality earns no credit, so bids compete on price. Recent defense authorization acts limit LPTA for complex services, such as IT and knowledge-based work. Read Section M to see whether a buy is LPTA or a tradeoff.

Source: FAR 15.101-2; 10 U.S.C. 3241

M

MBSE

MBSE (model-based systems engineering) designs a system with one connected computer model instead of stacks of separate documents. Defense programs now often require it in solicitations, usually with SysML tools. Companies with MBSE skills can compete for engineering work that others cannot. Procura reads MBSE requirements in solicitations when it rates a team's fit.

N

NAICS code

A NAICS (North American Industry Classification System) code is a six-digit number that names a line of business, such as 541330 for engineering services. Every federal contract and solicitation carries one NAICS code, and that code sets the size standard a company must meet to count as small for that buy. Companies list the codes they work in when they register. Procura groups spending by NAICS on industry pages, using the first four digits for the broader group.

Source: FAR 19.102; 13 CFR 121.201

Browse NAICS codes

National stock number (NSN)

A national stock number (NSN) is the 13-digit number the government assigns to a standard supply item, from bolts to radios. The first four digits are the federal supply class, which matches the product and service code for that item. Suppliers search open buys by NSN, and listing your parts against the right NSNs is how manufacturers and distributors get found.

Source: DoD 4100.39-M (Federal Logistics Information System)

NDAA (National Defense Authorization Act)

The National Defense Authorization Act (NDAA) is the yearly law that sets Defense policy and authorizes programs and funding levels. It often changes contracting rules, for example on small business, cybersecurity and commercial buying. It does not provide money itself: the defense appropriations act does. Contractors read it for new programs and rule changes that will reach solicitations later.

Source: Annual act, e.g. Pub. L. 118-159 (FY2025 NDAA)

NIST SP 800-171

NIST Special Publication 800-171 sets the security rules a contractor's own systems must meet to protect controlled unclassified information (CUI). They cover areas such as access control, incident response and encryption. Defense contracts require it through DFARS clause 252.204-7012, and CMMC Level 2 assesses against its 110 requirements. Companies record their status in a system security plan and an assessment score.

Source: DFARS 252.204-7012; DFARS 252.204-7019

Nonmanufacturer rule

The nonmanufacturer rule lets a small business that does not make a product still win a supply set-aside. It must supply an item made by a small business in the United States. If no small manufacturer exists for the item, the Small Business Administration can grant a class or individual waiver. Resellers and distributors should check the rule before quoting on set-aside supply buys.

Source: 13 CFR 121.406; FAR 19.505

Notice of intent to sole source

A notice of intent to sole source says the government plans to award a contract to one named company without a competition. Other companies that believe they can do the work can answer before the deadline, and a strong answer can force a competition. These notices also show which companies an agency already relies on. Procura lists them with the other open notices.

Source: FAR 5.201; FAR 6.302

O

Obligation

An obligation is money the government has legally committed to pay on a contract. It is recorded when a contract or modification is signed, before any work is billed, so it is not the same as cash paid. Obligations are the standard measure of federal contract spending, and every dollar total in Procura counts obligations. Example: $6M obligated against a $10M ceiling means $6M is committed so far.

Source: 31 U.S.C. 1501; OMB Circular A-11, section 20

Offeror

An offeror is any company that submits an offer in response to a solicitation. In sealed bidding the same party is called a bidder, and in response to a request for quotations it is a quoter. Solicitation instructions and clauses address offerors, so "the offeror shall" means your company must do it to be considered.

Source: FAR 2.101

Office code

An office code is the six-character code that identifies a government contracting or funding office in contract records. Defense offices use their DoD Activity Address Code (DoDAAC). The code is the most reliable way to follow one buying office across years, because office names change and repeat. Procura shows office codes in parentheses next to office names and uses them to build the office lists on agency pages.

Source: FAR 4.1603(a)(1)

Operation and maintenance (O&M)

Operation and maintenance (O&M) is the appropriation that pays for day-to-day running costs: training, maintenance, base operations, civilian pay and most support services. O&M money is generally available to obligate for one year, which is why much of it is awarded near fiscal year-end. Most service contractors are paid from O&M accounts.

Source: DoD 7000.14-R, vol. 2A

Option (option year)

An option is a right, written into the contract, that lets the government extend the work or buy more at prices set in advance. Most service contracts run as one base year plus several one-year options. The government decides whether to exercise each option, and the contractor must perform if it does. An unexercised option is the earliest sign a contract may end early. Contract pages in Procura show when options moved the end date.

Source: FAR 2.101; FAR subpart 17.2

Ordering period

The ordering period is the span of dates during which the government may place new orders under a vehicle. When it ends, no new orders can be placed, but orders already placed can keep running to their own end dates. The end of an ordering period often signals a successor vehicle and a recompete. Vehicle pages in Procura show "Ordering ends" and mark vehicles whose ordering has closed.

Source: FAR 16.505(a); FAR 52.216-18

Organizational conflict of interest (OCI)

An organizational conflict of interest (OCI) arises when a company's other work gives it an unfair edge or could bias its judgment. Writing requirements it then bids on, or evaluating its own products, are typical cases. The contracting officer must find and avoid, neutralize or mitigate it, which can mean excluding the company. Firms doing advisory work should check OCI limits before taking a job.

Source: FAR subpart 9.5

OSDBU (small business office)

An OSDBU (Office of Small and Disadvantaged Business Utilization) is the small-business office every major agency must have. Its staff and small-business specialists review buys for set-aside potential, track the agency's small-business goals and meet with small companies. A short, specific capability briefing to the right OSDBU can lead to introductions to program offices. Defense calls it the OSBP.

Source: 15 U.S.C. 644(k)

Ostensible subcontractor rule

Under the ostensible subcontractor rule, a small prime and its subcontractor count as one company for size. This happens when the sub does the main work or the prime relies on it heavily. If the combined size is too large, the prime loses eligibility for the set-aside. It is a common ground for size protests against small primes teamed with large firms.

Source: 13 CFR 121.103(h)(3)

Other transaction agreement (OTA)

An other transaction agreement (OT or OTA) is a flexible agreement outside the normal contract rules. Agencies with the authority use it for research, prototypes and, after a successful prototype, follow-on production. Because it is not a procurement contract, most FAR rules do not apply. Defense prototype OTs generally require a nontraditional defense contractor or small business to take part, or a cost share. OTs are a fast route into Defense work for commercial firms.

Source: 10 U.S.C. 4021-4023

Outlay

An outlay is an actual payment of federal money, such as paying a contractor's invoice. It comes after the obligation that committed the money, often months or years later on long contracts. Contract totals are reported as obligations, while the budget deficit is measured in outlays, which is why the two rarely match. Procura reports contract obligations, not outlays.

Source: OMB Circular A-11, section 20

P

Parent company

A parent company owns other companies that hold their own government registrations. Large contractors often have dozens: one per business unit, location or acquired company. The parent company's page groups every registration in the family, with their contracts and money, so you can see the whole company in one place. Joint ventures are not part of either partner's family.

Parent registration

A parent company and the companies it owns can each hold their own government registration. The contractors list shows the parent company once, as its parent registration: the parent's name, location and industry, with the prime award value of every registration in its family added together. Companies that belong to no parent company keep a row of their own. Switch the list to "All registrations" to see each registration on its own row.

Parent UEI

A parent UEI is the Unique Entity ID of the company that owns or controls a registered company. Registrations must name the immediate owner and the highest-level owner, which links subsidiaries and separate locations into one corporate family. That matters because affiliates can count against small-business size, and because a large company often wins under several names.

Source: FAR 52.204-17

Partial set-aside

A partial set-aside reserves part of a purchase for small businesses and leaves the rest open to everyone. Agencies use it when a large buy can be split into lots and small businesses can supply some of them at fair prices. Small businesses can bid on both parts. Contract records show it as "Small business (partial)".

Source: FAR 19.502-3

R

RDT&E (research, development, test and evaluation)

RDT&E (research, development, test and evaluation) is the Defense money for research, prototypes and testing. It funds a system before it moves to production. Each year's RDT&E money is generally available to obligate for two years. Its budget lines are broken out by program element, which makes it the most detailed public view of upcoming research work.

Source: DoD 7000.14-R, vol. 2B

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Recompete

A recompete is a new competition for work the government already buys, held when the current contract or its ordering period runs out. The company doing the work today, the incumbent, must win again, and every other qualified company gets a chance to take it. Recompetes are often the best openings for a challenger because the need and the budget are proven. Procura flags contracts ending soon and links the successor when one appears.

Registration

A registration is the record a company creates to do business with the federal government. It holds the legal name, address, UEI, CAGE code, NAICS codes and certifications. It must be renewed every year, and an expired registration blocks new awards. One company can hold several registrations, often one per location. Procura counts registrations until it can merge them into one company.

Source: FAR 4.1102; FAR 52.204-7

Requirements contract

A requirements contract commits the government to buy all of its needs for certain supplies or services from one contractor. Orders are placed as needs arise during a set period. The contract gives an estimated quantity but no guaranteed minimum. It differs from an IDIQ, which guarantees a minimum but does not promise all of the agency's needs.

Source: FAR 16.503

Response deadline

The response deadline is the exact date and time offers or quotes are due. The solicitation and its amendments state it, with a time zone. Offers that arrive late are rejected except in a few narrow cases. Agencies often extend deadlines by amendment, so check the latest one. Procura shows each opportunity's deadline in Eastern time.

Source: FAR 15.208; FAR 52.212-1(f)

Responsibility determination

A responsibility determination is the contracting officer's finding that the apparent winner can do the job. The company must have adequate money, capacity, a good performance and integrity record, and the needed systems. No contract can go to a company found not responsible. When the company is small, that finding goes to the Small Business Administration, which can overrule it with a Certificate of Competency.

Source: FAR 9.104-1; FAR subpart 19.6

RFI (request for information)

An RFI (request for information) asks companies to answer questions about a need before the government decides how to buy. Agencies use the answers to shape requirements, estimate cost and judge whether small businesses can do the work. A good answer can steer the later solicitation toward what your company does well. No contract is awarded from an RFI. Procura lists RFIs with the other open notices.

Source: FAR 15.201(e)

RFP (request for proposals)

An RFP (request for proposals) is the solicitation used for negotiated buys. The government judges offers on price and on non-price factors such as technical approach, management and past performance. It follows the uniform contract format, with Section L for instructions and Section M for evaluation. Offers are binding, and the government can award without discussions, so the first proposal must be the best one.

Source: FAR 15.203

RFQ (request for quotations)

An RFQ (request for quotations) asks companies for price quotes and often a short technical response. Agencies use it mostly for simplified buys and orders under GSA Schedules. Unlike a proposal, a quotation is not an offer: the government's order is the offer, and the contract forms when the company accepts it. RFQs move fast, with responses due in days, so speed and complete paperwork decide many of them.

Source: FAR 13.004; FAR 13.106

Rule of two

The rule of two says a buy must be set aside for small businesses when two or more of them are likely to offer. The offers must come from responsible firms at fair market prices. The Department of Veterans Affairs applies the same test to veteran-owned firms first. This is why answering Sources Sought notices matters: each capable small firm that responds helps trigger the set-aside.

Source: FAR 19.502-2; 38 U.S.C. 8127(d)

S

S corporation (Subchapter S)

An S corporation is a U.S. corporation that passes its income and losses through to its owners for tax. It makes this election under Subchapter S of the tax code. It is one of the entity types a company declares when it registers for federal work, along with LLCs, partnerships and C corporations. The tax form does not change eligibility for contracts. Company profiles in Procura show the entity type the company registered.

Source: 26 U.S.C. 1361

SAM.gov

SAM.gov (the System for Award Management) is the federal website where companies register to do business with the government. There they get their UEI and post their representations and certifications. Agencies also post contract opportunities there, from Sources Sought notices to solicitations and award notices. An active registration is required before most awards.

Source: FAR 4.1102; FAR 2.101

SBA (Small Business Administration)

The Small Business Administration is the federal agency that sets size standards. It also runs the small-business contracting programs: 8(a), HUBZone, women-owned and veteran-owned certification, and mentor-protege. It also negotiates each agency's small-business goals and hears size and status protests. For a small contractor, its rules decide which set-asides you can bid on.

Source: 15 U.S.C. 633; 13 CFR chapter I

SBA-listed small business

An SBA-listed small business is a company that appears in the Small Business Administration's public directory of small businesses. The company writes its own profile, including its certifications. Contracting officers and large primes search this directory during market research, so a complete profile helps a company get found. The listing is not a size ruling: whether a company counts as small depends on the size standard for each contract's NAICS code. Company profiles in Procura mark SBA-listed companies.

Source: 13 CFR 121 (size); SBA small-business directory

SBIR (Small Business Innovation Research)

SBIR (Small Business Innovation Research) is a federal program that reserves part of large agencies' research budgets for small U.S. businesses. Phase I funds a short feasibility study, Phase II funds development of a prototype, and Phase III is follow-on work paid from other budgets. Agencies publish topics, and companies propose against them. SBIR awards are a common first federal contract for technology startups.

Source: 15 U.S.C. 638

SBIR Phase III

SBIR Phase III is work that derives from, extends or completes an earlier SBIR or STTR project, paid from budgets outside the SBIR program. Agencies can award Phase III work to the original company without a new competition, at any size and at any time. That sole-source path is the main business value of an SBIR win and is why primes team with SBIR holders.

Source: 15 U.S.C. 638(r)

SDVOSB (service-disabled veteran-owned small business)

An SDVOSB (service-disabled veteran-owned small business) is a small business at least 51% owned and controlled by service-disabled veterans. The disability must be service-connected. Firms must be certified to receive SDVOSB set-asides and sole-source awards governmentwide. Every agency has an SDVOSB goal, and the Department of Veterans Affairs buys from these firms first. Company profiles in Procura show the set-asides a company has won under.

Source: 15 U.S.C. 657f; 13 CFR part 128; FAR subpart 19.14

Section L (instructions to offerors)

Section L is the part of a solicitation that tells offerors how to build the proposal. It sets the volumes, page limits, fonts and what each section must address. Non-compliance can get a proposal rejected before it is read. Build the proposal outline from Section L and check it against Section M.

Source: FAR 15.204-1; FAR 15.204-5(b)

Service Contract Act (labor standards)

The Service Contract Act, now the Service Contract Labor Standards, sets minimum pay on most federal service contracts over $2,500. Workers must get at least the local prevailing wages and fringe benefits in a Labor Department wage determination. The wage determination is attached to the solicitation, so it sets the floor for any price you bid.

Source: 41 U.S.C. chapter 67; FAR subpart 22.10

Set-aside

A set-aside reserves a competition for small businesses, or for one group of them: 8(a), HUBZone, service-disabled veteran-owned, or women-owned firms. Contracting officers must set aside a buy when they expect offers from at least two capable small businesses at fair prices. For a small company, set-asides cut the field to firms of similar size. Procura shows the set-aside type on every contract and opportunity.

Source: FAR subpart 19.5

SIC code

A SIC (Standard Industrial Classification) code is a four-digit industry code the U.S. used before 1997, when NAICS replaced it. Some lenders, insurers and state forms still ask for it, but federal contracts, size standards and registrations use NAICS codes only. If a buyer or form asks for your industry code for federal work, give your NAICS code.

Source: OMB, North American Industry Classification System (1997)

T

TAA (Trade Agreements Act) compliance

The Trade Agreements Act (TAA) limits covered federal buys to products from the U.S. or from designated trade partner countries. A "TAA-compliant" product is made or substantially transformed in one of those countries; China is not one. GSA Schedule contracts require TAA compliance for every listed product.

Source: 19 U.S.C. 2501 et seq.; FAR subpart 25.4

Task order

A task order is an order for services placed under a contract that already exists, usually an IDIQ or other contract vehicle. Only the companies that hold that vehicle can compete for its task orders, so winning a seat on the vehicle comes first. Procura lists every order under a vehicle on its page and links each order to its own contract page.

Source: FAR 2.101; FAR 16.505

Teaming agreement

A teaming agreement is a contract between companies that agree to pursue a federal opportunity together. Usually one is the prime and the others are planned subcontractors. It sets each party's work share, exclusivity and what happens if the team wins or loses. The government recognizes these arrangements, but the prime stays fully responsible for the work. Company profiles in Procura show the primes and subs a company has worked with.

Source: FAR subpart 9.6

Termination for convenience

A termination for convenience lets the government end all or part of a contract when that is in its interest, with no fault by the contractor. The contractor is paid for work performed and reasonable settlement costs, but not profit on the work canceled. Every federal contract carries this right, so a backlog is never fully guaranteed.

Source: FAR subpart 49.5; FAR 52.249-2

Termination for default

A termination for default (or for cause, on commercial contracts) ends a contract because the contractor failed to deliver, perform or make progress. The government can buy the work elsewhere and charge the extra cost to the contractor. The termination is recorded in the integrity and performance records that every contracting officer checks, so it damages future bids.

Source: FAR subpart 49.4; FAR 52.249-8; FAR 52.212-4(m)

Time-and-materials (T&M)

A time-and-materials (T&M) contract pays fixed hourly labor rates plus the actual cost of materials. The hourly rates include overhead and profit, and a ceiling price caps the total. A labor-hour contract is the same without materials. Agencies use them when the amount of work cannot be known up front, but the FAR treats them as least preferred and requires a written justification. Winning depends on competitive rates and qualified staff.

Source: FAR 16.601-16.602

U

UEI (Unique Entity ID)

A UEI (Unique Entity ID) is the 12-character letter-and-number code the government assigns to each company that registers for federal work. Every contract, subaward and payment record is tied to it, so it is the surest way to find one company in the data. It replaced the DUNS number on April 4, 2022. Every company profile in Procura shows its UEI, and the UEI lookup finds a company from it.

Source: FAR 4.1102 and FAR 52.204-7

Look up a UEI

Undefinitized contract action (UCA)

An undefinitized contract action (UCA) lets a contractor start work before the price and final terms are agreed, when the need is urgent. A letter contract is one common form. The parties must settle (definitize) the terms later, usually within 180 days, and the government may obligate only part of the expected price until then. UCAs carry pricing risk and close government scrutiny.

Source: FAR 16.603; DFARS 217.74

Unilateral modification

A unilateral modification is a contract change signed only by the contracting officer. It is used for administrative changes, change orders, adding incrementally funded money and exercising options. The contractor does not have to agree, but can still ask for an equitable adjustment if the change affects cost or schedule.

Source: FAR 43.103(b)

USAspending.gov

USAspending.gov is the official public website for federal spending, covering contracts, grants, loans and their subawards. It combines agency financial reports with contract records and subaward reports, so it shows both obligations and outlays. It was created under the 2006 transparency law and expanded by the DATA Act of 2014.

Source: Pub. L. 109-282; Pub. L. 113-101

V

Vehicle holder

A holder is a company that has won a seat on a contract vehicle, such as an IDIQ or GWAC. Only holders may compete for the vehicle's orders, and on many vehicles a few holders win most of the money. A vehicle's holder list is a ready-made list of competitors and possible teammates. Procura lists every holder on each vehicle page with its share of the orders.

VOSB (veteran-owned small business)

A VOSB (veteran-owned small business) is a small business at least 51% owned and controlled by one or more veterans. Since January 1, 2023, the SBA certifies VOSBs (the VA verified them before), and a firm must be certified to receive VOSB set-asides. VA buys from VOSBs first under its "Veterans First" rules, so certification opens a large market. Company profiles in Procura show the set-asides a company has won under.

Source: 13 CFR part 128; 38 U.S.C. 8127

W

WOSB (women-owned small business)

A WOSB (women-owned small business) is a small business at least 51% owned and controlled by one or more women who are U.S. citizens. Since October 2020, a firm must be certified to receive WOSB set-asides, which are allowed only in industries where women-owned firms are substantially underrepresented. The governmentwide goal is 5% of prime contract dollars. Company profiles in Procura show the set-asides a company has won under.

Source: 15 U.S.C. 637(m); 13 CFR part 127; FAR subpart 19.15