Solicitations under sealed bid procedures are called «invitations for bids.» Solicitations under negotiated procedures are called «requests for proposals.» Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer. Self-insurance means the assumption or retention of the risk of loss by the contractor, whether voluntarily or involuntarily. Performance Work Statement (PWS) means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes.
Bid or Proposal
Responses to invitations for bids (sealed bidding) are offers called «bids» or «sealed bids»; responses to requests for proposals (negotiation) are offers called «proposals»; however, responses to requests for quotations (simplified acquisition) are «quotations,» not offers. Master solicitation means 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. General and administrative (G&A) expense means any management, financial, and other expense which is incurred by or allocated to a business unit and which is for the general management and administration of the business unit as a whole. G&A expense does not include those management expenses whose beneficial or causal relationship to cost objectives can be more directly measured by a base other than a cost input base representing the total activity of a business unit during a cost accounting period. Economically disadvantaged women-owned small business (EDWOSB) concern- (see definition of «Women-Owned Small Business (WOSB) Program» in this section). Design-to-cost means a concept that establishes cost elements as management goals to achieve the best balance between life-cycle cost, acceptable performance, and schedule.
Definition
Pricing means the process of establishing a reasonable amount or amounts to be paid for supplies or services. Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency. Federally-controlled information system means an information system (44 U.S.C. 3502(8) used or operated by a Federal agency, or a contractor or other organization on behalf of the agency (44 U.S.C. 3544(a)(1)(A)). Electronic Funds Transfer (EFT) indicator means a four-character suffix to the unique entity identifier. The suffix is assigned at the discretion of the commercial, nonprofit, or Government entity to establish additional System for Award Management records for identifying alternative EFT accounts (see subpart 32.11) for the same entity.
Overtime premium means the difference between the contractor’s regular rate of pay to an employee for the shift involved and the higher rate paid for overtime. It does not include shift premium, i.e., the difference between the contractor’s regular rate of pay to an employee and the higher rate paid for extra-pay-shift work. Indirect cost rate means the percentage or dollar factor that expresses the ratio of indirect expense incurred in a given period to direct labor cost, manufacturing cost, or another appropriate base for the same period (see also «final indirect cost rate»). Effective date of termination means the date on which the notice of termination requires the contractor to stop performance under the contract.
- For purposes of compliance with 31 U.S.C.3332 and implementing regulations at 31 CFR part 208, the term «electronic funds transfer» includes a Governmentwide commercial purchase card transaction.
- Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price.
- Small business subcontractor means a concern that does not exceed the size standard for the North American Industry Classification Systems code that the prime contractor determines best describes the product or service being acquired by the subcontract.
- Computer database or «database» means a collection of recorded information in a form capable of, and for the purpose of, being stored in, processed, and operated on by a computer.
- A contract performance report is documentation submitted by the contractor to report progress, accomplishments, and any issues encountered during contract performance.
Transactional Data Reporting (TDR)
Entering the world of federal contracting means learning a unique language filled with abbreviations, acronyms, and specialized terms. Whether you’re preparing a proposal, managing a contract, or simply researching opportunities, understanding these terms is critical. Special test equipment means either single or multipurpose integrated test units engineered, designed, fabricated, or modified to accomplish special purpose testing in performing a contract. It consists of items or assemblies of equipment including foundations and similar improvements necessary for installing special test equipment, and standard or general purpose items or components that are interconnected and interdependent so as to become a new functional entity for special testing purposes.
North American Industrial Classification System (NAICS) Codes
- Contracting officer’s representative (COR) means an individual, including a contracting officer’s technical representative (COTR), designated and authorized in writing by the contracting officer to perform specific technical or administrative functions.
- The Government Accountability Office is a congressional watchdog responsible for auditing and evaluating government programs and expenditures to ensure accountability and efficiency.
- Direct costs are not limited to items that are incorporated in the end product as material or labor.
- The unison marketplace is an online platform used by government agencies for conducting auctions, solicitations, and contract management, facilitating efficient procurement processes and competition among vendors.
- Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract.
Make-or-buy program means that part of a contractor’s written plan for a contract identifying those major items to be produced or work efforts to be performed in the prime contractor’s facilities and those to be subcontracted. Contracting officer’s representative (COR) means an individual, including a contracting officer’s technical representative (COTR), designated and authorized in writing by the contracting officer to perform specific technical or administrative functions. Change order means 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. Assisted acquisition means a type of interagency acquisition where a servicing agency performs acquisition activities on a requesting agency’s behalf, such as awarding and administering a contract, task order, or delivery order. If a word or term that is defined in this section is defined differently in another part, subpart, or section of this chapter, the definition in this section includes a cross-reference to the other definitions and that part, subpart, or section applies to the word or term when used in that part, subpart, or section. Socioeconomic programs are government initiatives aimed at promoting the participation of certified small businesses, disadvantaged groups, and other underrepresented entities in federal contracting.
Government Accountability Office (GAO)
From identifying the right candidates to facilitating seamless onboarding, we’re dedicated to helping you build a team that drives success Federal Government Contracting. Our team of seasoned professionals brings a wealth of experience in the art Federal Government Contracting and science of proposal writing. Whether you’re seeking funding, partnerships, or new opportunities, we have the expertise to turn your ideas into persuasive proposals that leave a lasting impression Federal Government Contracting. Sources Sought Notice – A notice to gather information on available businesses for a potential procurement.
Historically black college or government contracting terminologies university means an institution determined by the Secretary of Education to meet the requirements of 34 CFR 608.2. Head of the contracting activity means the official who has overall responsibility for managing the contracting activity. First article testing means testing and evaluating the first article for conformance with specified contract requirements before or in the initial stage of production. Executive agency means an executive department, a military department, or any independent establishment within the meaning of 5 U.S.C.101, 102, and 104(1), respectively, and any wholly owned Government corporation within the meaning of 31 U.S.C. 9101.
MAS is a contract vehicle that allows government agencies to purchase goods and services from pre-approved vendors with negotiated terms and pricing. A marketing partner identification number is a unique identifier used by businesses registered in the System for Award Management (SAM) for secure access to government contracting systems. The GSA is a federal agency tasked with managing government buildings, supplies, and transportation, including procurement through programs like GSA Schedules. Cooperative Purchasing – An arrangement allowing state and local governments to use federal contracts to purchase goods/services.
Forward pricing rate agreement means a written agreement negotiated between a contractor and the Government to make certain rates available during a specified period for use in pricing contracts or modifications. These rates represent reasonable projections of specific costs that are not easily estimated for, identified with, or generated by a specific contract, contract end item, or task. These projections may include rates for such things as labor, indirect costs, material obsolescence and usage, spare parts provisioning, and material handling. Termination inventory means any property purchased, supplied, manufactured, furnished, or otherwise acquired for the performance of a contract subsequently terminated and properly allocable to the terminated portion of the contract. It does not include any facilities, material, special test equipment, or special tooling that are subject to a separate contract or to a special contract requirement governing their use or disposition.
Federal Acquisition Regulation (FAR)
Electronic data interchange (EDI) means a technique for electronically transferring and storing formatted information between computers utilizing established and published formats and codes, as authorized by the applicable Federal Information Processing Standards. Cost sharing means an explicit arrangement under which the contractor bears some of the burden of reasonable, allocable, and allowable contract cost. Change-of-name agreement means a legal instrument executed by the contractor and the Government that recognizes the legal change of name of the contractor without disturbing the original contractual rights and obligations of the parties.
The federal fiscal year is the 12-month accounting period used by the federal government for budgeting and financial reporting, beginning on October 1st and ending on September 30th. A contract performance report is documentation submitted by the contractor to report progress, accomplishments, and any issues encountered during contract performance. Simplified Acquisition Procedures (SAP) – Procedures for purchases under the simplified acquisition threshold to streamline procurement. Cost Plus Fixed Fee (CPFF) – A contract where the contractor is reimbursed for allowable costs plus a fixed fee. Contractor Team Arrangement (CTA) – An arrangement between two or more GSA Schedule contractors to work together to fulfill government requirements.
Irrevocable letter of credit means a written commitment by a federally insured financial institution to pay all or part of a stated amount of money, until the expiration date of the letter, upon the Government’s (the beneficiary) presentation of a written demand for payment. Neither the financial institution nor the offeror/contractor can revoke or condition the letter of credit. Indirect cost means any cost not directly identified with a single final cost objective, but identified with two or more final cost objectives or with at least one intermediate cost objective. Federal agency means any executive agency or any independent establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, the Architect of the Capitol, and any activities under the Architect’s direction). Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations. Delivery order means an order for supplies placed against an established contract or with Government sources.
