The GovCon Dictionary

A

8(a) Business Development Program SBA: An SBA program that helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts. Participants can receive sole-source contracts (no competition) up to $5.5 million for services or $8.5 million for manufacturing. The program lasts nine years.
Acquisition BASICS: The process the government uses to buy goods and services from private businesses. It covers everything from identifying a need to awarding and managing a contract. When you hear "federal acquisition," think "federal purchasing."
Allowable Cost COMPLIANCE: A cost the government will reimburse on a cost-type contract. To be allowable, a cost must be reasonable, allocable to the contract, and permitted under FAR Part 31. Your accounting system must separate allowable from unallowable costs before billing the government.; Read more →
APMP (Association of Proposal Management Professionals) BD: The leading professional association for proposal, bid, and capture management practitioners. APMP publishes industry benchmarks on win rates and capture best practices. Their research, along with Shipley Associates, is widely cited for the finding that the majority of government buying decisions are made before proposals are submitted.; Read more →
APEX Accelerator BASICS: A free government-funded counseling center that helps small businesses win contracts. Formerly called PTACs (Procurement Technical Assistance Centers). There are over 300 locations nationwide. They help with SAM.gov registration, finding opportunities, and writing proposals at no cost.; Read more →
Award BASICS: When the government officially selects a contractor and signs the contract. Getting an "award" means you won the contract and can start work. The contracting officer is the only person who can make an award official.
Award Fee COMPLIANCE: A bonus payment the government adds to your contract price based on how well you perform the work. Used on cost-plus-award-fee (CPAF) contracts. The government evaluates your performance periodically and decides how much of the available fee pool you earn.

B

Berry Amendment DLA: A law requiring the Department of Defense to buy food, clothing, fabrics, and hand tools only from U.S. sources. If you sell these items to the military, your products must be 100% domestically sourced. This applies to most DLA Troop Support purchases.
Best Value PROPOSALS: An evaluation method where the government picks the proposal that offers the best combination of quality and price, not just the cheapest option. This means a higher-priced proposal can still win if it offers a better technical approach or stronger past performance.
Bid PROPOSALS: An offer you submit to the government in response to a solicitation. In sealed bidding (IFBs), the lowest-priced responsive bid wins. In negotiated procurements (RFPs), the government evaluates your entire proposal, not just the price.
Bid/No-Bid Decision PROPOSALS: The process of deciding whether a contract opportunity is worth pursuing before you spend time writing a proposal. Good contractors evaluate their win probability, available resources, and fit before committing. Chasing every opportunity wastes time and money.
Blanket Purchase Agreement (BPA) GROWTH: A simplified method for filling recurring government needs for supplies or services. Think of it like a standing account at a store. The government sets up the agreement once, then places individual orders as needed without going through a full bidding process each time.
Bonding PROPOSALS: A guarantee from a surety company that you will complete the contract work. Construction contracts often require bid bonds, performance bonds, and payment bonds. The Miller Act requires bonds on federal construction projects over $150,000.
Buy American Act COMPLIANCE: A federal law requiring the government to prefer U.S.-made products when buying supplies. Manufactured items must have 55% or more domestic content (rising to 75% by 2029). If you sell products to the government, check whether your goods qualify as domestic.

C

CAGE Code SAM: Commercial and Government Entity Code. A five-character ID assigned to your business by the Defense Logistics Agency during SAM.gov registration. You need it to do business with the Department of Defense. It is assigned automatically and usually arrives within five business days after your SAM registration is validated.
Capability Statement BD: A one-page document that tells the government what your business does, who you have worked for, and why they should pick you. It is your business resume for government buyers. Every contractor needs one. Include your NAICS codes, UEI, certifications, and past performance.
Capture Management BD: The process of positioning your company to win a specific contract before the solicitation is even released. It starts 12 to 18 months before bid day and involves meeting with the agency, understanding the requirement, and building relationships. Most contracts are won or lost during capture, not during proposal writing.
CAS (Cost Accounting Standards) COMPLIANCE: A set of rules that govern how you track and report costs on government contracts. Small businesses are fully exempt. Modified CAS (4 standards: 401, 402, 405, 406) kicks in at $35 million per contract. Full CAS (all 19 standards) applies at $100 million in aggregate CAS-covered contracts. Thresholds updated by FY2026 NDAA, effective after June 30, 2026.; Read more →
Ceiling Price COMPLIANCE: The maximum dollar amount the government will pay on a contract. Common on time-and-materials and IDIQ contracts. You cannot bill above the ceiling without a contract modification. Track your spending against the ceiling to avoid working for free.
Certifications and Representations SAM: Self-declarations you make during SAM.gov registration about your business type, size, ownership, and compliance status. These are legally binding. Misrepresenting your status (like claiming to be small when you are not) can result in fines, contract termination, and debarment.
CMMC (Cybersecurity Maturity Model Certification) COMPLIANCE: A Department of Defense cybersecurity standard that contractors must meet to handle sensitive government information. Level 1 requires 17 basic practices (self-assessed). Level 2 requires 110 practices with third-party assessment. If you want DoD contracts involving controlled information, you will need CMMC certification.
CO (Contracting Officer) BASICS: The government official with legal authority to enter into, change, or terminate contracts. Only the CO can bind the government to a deal. If anyone else at the agency tells you to change the scope of work or spend more money, get it in writing from the CO first.
Color Team Review PROPOSALS: A structured review process used during proposal development. Different review stages have color names: Pink (outline), Red (full draft), Gold (final). Each review checks compliance, persuasiveness, and quality. Even small businesses benefit from having someone review their proposal before submission.
Combined Synopsis/Solicitation PROPOSALS: A single document on SAM.gov that announces a contract opportunity and includes the full solicitation at the same time. Common for simpler purchases. When you see one of these, you can start writing your proposal immediately.
Competitive Range PROPOSALS: The group of proposals that the government considers good enough to move forward in the evaluation process. If your proposal makes the competitive range, you may get a chance to revise it during discussions. If it does not, you are out.
Compliance Matrix PROPOSALS: A table that maps every requirement from the solicitation to the exact section of your proposal that addresses it. It proves you read and responded to everything the government asked for. Building one before you start writing keeps your proposal organized and compliant.
Contract Line Item Number (CLIN) BASICS: A numbered line in a contract that identifies a specific item or service being purchased, along with its quantity and price. Think of CLINs like line items on an invoice. Each one describes something the government is buying and what they are paying for it.
Contract Modification COMPLIANCE: A written change to an existing contract. Only the contracting officer can issue one. Modifications can change the scope, price, schedule, or terms. Never start extra work based on a verbal request. Always get a signed modification first.
Contract Vehicle GROWTH: A pre-established contract that agencies use to buy goods or services without running a full competition each time. GSA Schedule, GWACs, and BPAs are contract vehicles. Getting on one gives you access to a steady stream of task orders from multiple agencies.
Contractor Team Arrangement (CTA) TEAMING: An agreement between two or more contractors to work together on government task orders. Unlike a joint venture, each company keeps its own contract. CTAs let small businesses combine capabilities to compete for larger orders.
Contracting Officer Representative (COR) BASICS: A government employee appointed to monitor your day-to-day performance on a contract. The COR is your main point of contact but cannot make changes to the contract. Only the contracting officer can do that. Build a good working relationship with your COR.
Cooperative Purchasing STATE/LOCAL: Programs that let state and local governments buy from existing federal or multi-state contracts. NASPO ValuePoint, Sourcewell, and GSA cooperative purchasing are the major ones. If you hold one of these contracts, state and local buyers can order from you directly.
COR (Contracting Officer Representative) BASICS: See Contracting Officer Representative. The COR monitors your work on behalf of the contracting officer. They review deliverables, approve invoices, and report on your performance. Treat them as your primary government contact during contract execution.
Cost-Plus Contract BASICS: A contract type where the government pays your actual allowable costs plus a fee (profit). Used when the scope of work is uncertain. You must track every cost carefully because the government will audit them. Requires a DCAA-adequate accounting system.
Cost Pool COMPLIANCE: A grouping of indirect costs that share a common allocation base. Most government contractors use three pools: fringe benefits (allocated on total labor), overhead (allocated on direct labor dollars), and general and administrative or G&A (allocated on total cost input). Fringe typically runs 25-40%, overhead 20-60%, and G&A 8-25% for small service contractors. Each pool is calculated as a rate and applied to contracts consistently.; Read more →
CPARS (Contractor Performance Assessment Reporting System) GROWTH: The government database where agencies rate your performance on contracts above $350,000 (per FAR 42.1502). Five rating levels: Exceptional, Very Good, Satisfactory, Marginal, and Unsatisfactory. Over 50% of all ratings are Satisfactory. Ratings stay in the system for 3 years (6 for construction). You have 14 days to respond to a rating you disagree with.; Read more →
CUI (Controlled Unclassified Information) COMPLIANCE: Government information that is not classified (not secret) but still needs protection. Examples include personnel records, law enforcement data, and technical drawings. If your contract involves CUI, you must follow NIST 800-171 security standards and will need CMMC certification for DoD work.

D

Davis-Bacon Act COMPLIANCE: A federal law requiring contractors on government construction projects over $2,000 to pay workers the local prevailing wage. If you do construction work for the government, you must pay at least the wage rate the Department of Labor sets for your area and trade.
DBE (Disadvantaged Business Enterprise) STATE/LOCAL: A certification for small businesses owned by socially and economically disadvantaged individuals, used primarily on state and local transportation projects funded by the U.S. Department of Transportation. This is separate from the federal 8(a) program. Apply through your state DOT.
DCAA (Defense Contract Audit Agency) COMPLIANCE: The Department of Defense agency that audits contractor accounting systems, costs, and billing. DCAA examined $599.8 billion in contractor costs in FY2024. They check that every dollar you charge is allowable, allocable, and reasonable under federal cost principles. Most relevant for cost-reimbursement and time-and-materials contracts.; Read more →
Debarment COMPLIANCE: When the government bans a company or individual from receiving new federal contracts, usually for fraud, poor performance, or integrity violations. Debarment typically lasts three years. The government checks the SAM.gov exclusions list before making any award.
Debriefing PROPOSALS: A meeting or written explanation from the government about why your proposal was not selected. You have a right to request one under FAR 15.506. Always request a debriefing when you lose. It tells you exactly what to improve for next time.
DFARS (Defense Federal Acquisition Regulation Supplement) COMPLIANCE: Additional procurement rules that apply specifically to Department of Defense contracts, on top of the standard FAR. DFARS includes requirements for cybersecurity, domestic sourcing, and cost accounting that do not apply to civilian agency contracts.
DIBBS (DLA Internet Bid Board System) DLA: The Defense Logistics Agency online platform where DLA posts solicitations for supplies and you submit quotes. If you sell physical products to the military, this is where you find and bid on DLA opportunities. Access it at dibbs.bsm.dla.mil.
Direct Cost COMPLIANCE: A cost you can trace to a specific contract. Examples: labor hours billed to a project, materials bought for a job, travel for a specific contract. Direct costs are the opposite of indirect costs. Your accounting system must separate the two clearly.; Read more →
DLA (Defense Logistics Agency) DLA: The Department of Defense agency that manages the military supply chain. DLA buys food, fuel, clothing, medical supplies, construction materials, and spare parts. It spends over $52 billion per year and sets aside 47% or more for small businesses. A major opportunity for product suppliers.
DUNS Number SAM: A nine-digit business identifier that was previously required for government contracting. Replaced by the UEI (Unique Entity Identifier) in April 2022. You no longer need a DUNS number. If you see it mentioned in older documents, the UEI is the current equivalent.
Dynamic Small Business Search SAM: A free tool on SAM.gov that lets you search for other small businesses by location, NAICS code, or certification. Government buyers use it to find contractors. Other small businesses use it to find teaming partners. Make sure your SAM.gov profile is complete so you show up in searches.

E

EDWOSB (Economically Disadvantaged Women-Owned Small Business) SBA: A subset of the WOSB program for women-owned small businesses whose owners meet additional economic disadvantage criteria. EDWOSB certification opens more set-aside categories than the standard WOSB program. Certify through certify.sba.gov.
EIN (Employer Identification Number) SAM: A nine-digit number assigned by the IRS that identifies your business for tax purposes. You need an EIN before you can register on SAM.gov. Apply for free at irs.gov. If you already have one for your business, use that same number.
Electronic Funds Transfer (EFT) SAM: The method the government uses to pay contractors directly into their bank account. You must provide your banking information during SAM.gov registration. The government does not send checks. All payments go through EFT.
Entity Registration SAM: The process of registering your business on SAM.gov to be eligible for federal contracts. It is free, takes about an hour to fill out, and requires validation that can take 7 to 10 business days. Your registration expires after one year and must be renewed annually.
Evaluation Criteria PROPOSALS: The standards the government uses to judge your proposal. Common criteria include technical approach, past performance, management plan, and price. The solicitation lists them in order of importance. Structure your proposal to address each criterion directly and in the same order.
Exclusions SAM: The SAM.gov list of companies and individuals barred from receiving federal contracts. Also called the "excluded parties list." The government checks this before every award. If a potential teaming partner is on it, do not work with them on government contracts.

F

FAR (Federal Acquisition Regulation) BASICS: The rulebook for how the federal government buys goods and services. It has 53 parts and covers everything from how contracts are advertised to how disputes are resolved. You do not need to memorize it, but you need to know the parts that affect your contracts. Found at acquisition.gov.
FCI (Federal Contract Information) COMPLIANCE: Information created or collected for the government under a contract that is not intended for public release. Less sensitive than CUI but still requires basic protection. CMMC Level 1 (17 security practices) applies to contractors who handle FCI.
FedMall DLA: An online marketplace at fedmall.mil where government buyers purchase commercial products. If you sell off-the-shelf items, FedMall lets government agencies find and buy your products directly. Registration is free for SAM.gov-registered vendors.
Firm Fixed Price (FFP) BASICS: A contract type where you agree to do the work for a set price, regardless of your actual costs. If the job costs you less than expected, you keep the difference. If it costs more, you absorb the loss. FFP is the most common contract type and carries the most risk for the contractor.
First Article Testing DLA: A requirement in some contracts (especially DLA) to produce and test a sample item before full production begins. The government inspects the sample to verify it meets specifications. Until your first article passes, you cannot ship the full order.
FPDS (Federal Procurement Data System) BD: A free government database at fpds.gov that records details on every federal contract award. Use it to research who won contracts, how much they were paid, and which agencies buy what you sell. Essential for market research before you bid.
Fringe Benefits Rate COMPLIANCE: The percentage added to labor costs to cover employee benefits like health insurance, retirement contributions, paid leave, FICA taxes, and workers compensation. Allocated on total labor dollars (both direct and indirect employees). On government contracts, fringe is an indirect cost that must be calculated and applied consistently. DCAA reviews this rate during audits.; Read more →
Full and Open Competition BASICS: When a contract opportunity is open to all businesses, regardless of size or certifications. No set-asides, no restrictions. Anyone who meets the requirements can submit a proposal. Most large federal contracts use full and open competition.

G

GAUGE Report BD: The annual survey of government contractors published by Unanet and CohnReznick. The GAUGE Report tracks industry trends including win rates, revenue growth, and operational challenges across government contracting firms. The 2021 report found that 75% of approximately 1,500 surveyed firms reported win rates of 50% or less.; Read more →
GAO (Government Accountability Office) BASICS: The independent federal agency that investigates how the government spends taxpayer money. In GovCon, GAO is best known for handling bid protests. If you believe a contract was awarded unfairly, you can file a protest with GAO within 10 days of the award.
General and Administrative (G&A) Rate COMPLIANCE: An indirect cost rate that covers the costs of running your business as a whole: executive salaries, accounting, legal, business development, and corporate insurance. G&A is allocated as a percentage of Total Cost Input (all costs except G&A costs). It is the broadest pool and usually produces the lowest rate because the base is the largest.; Read more →
GFE/GFP (Government Furnished Equipment/Property) COMPLIANCE: Equipment or property the government provides for you to use while performing a contract. You are responsible for tracking and maintaining it. When the contract ends, you return it. Your property management system must account for every piece of GFE/GFP.
Governmentwide Acquisition Contract (GWAC) GROWTH: A large, pre-competed contract vehicle that multiple agencies can use to buy IT products and services. Examples include Alliant 2, 8(a) STARS III, and VETS 2. Getting on a GWAC gives you access to task orders from agencies across the government.
GSA Schedule (Multiple Award Schedule) GROWTH: A long-term contract with the General Services Administration that lets federal agencies buy your products or services at pre-negotiated prices. Think of it as being on the government approved vendor list. The contract lasts up to 20 years. Requires two years of financial history to apply.

H

HUBZone (Historically Underutilized Business Zone) SBA: An SBA program for small businesses located in economically distressed areas. To qualify, your principal office must be in a HUBZone and 35% of your employees must live in one. Certified HUBZone businesses get set-aside contracts and a 10% price evaluation preference. As of January 2025, mentor-protege joint ventures are not eligible for the 10% price preference. Check the map at maps.certify.sba.gov.

I

IDIQ (Indefinite Delivery/Indefinite Quantity) GROWTH: A contract that does not specify an exact quantity of work upfront. Instead, it sets a ceiling amount and the government issues task orders over time for specific work. IDIQ contracts can last five to ten years. Winning one creates a pipeline of work without rebidding each time.
IFB (Invitation for Bid) PROPOSALS: A type of solicitation where the government awards the contract to the lowest-priced bidder who meets all requirements. No negotiations, no evaluation of technical approach. Sealed bids are opened at a set date and time. Common for construction and supply contracts.
Incurred Cost Submission COMPLIANCE: An annual report you submit to DCAA showing all costs you charged to government contracts during the year. Due six months after your fiscal year ends per FAR 52.216-7(d). Required for cost-type and time-and-materials contracts. DCAA uses it to verify you billed correctly.; Read more →
Indirect Cost COMPLIANCE: A business expense that supports multiple contracts and cannot be charged to just one. Examples: office rent, company insurance, your accountant fees. Indirect costs are grouped into pools (overhead, G&A, fringe) and allocated to contracts through rates. Your accounting system must keep them separate from direct costs.; Read more →
Indirect Rate COMPLIANCE: A percentage that spreads your indirect costs across all your contracts. Common rates include overhead rate, G&A rate, and fringe rate. You propose provisional rates at the start of the year and submit actual rates to DCAA after the year ends. Getting your rates right is critical to pricing and profitability.; Read more →
Industrial Funding Fee (IFF) GROWTH: A small fee (usually 0.75%) that GSA Schedule holders pay to GSA on all sales made through the Schedule. Think of it as a royalty for being on the government approved vendor list. You factor the IFF into your pricing.
Impaired Objectivity BD: One of three types of Organizational Conflict of Interest (OCI) under the FAR. Impaired objectivity occurs when a contractor provides advisory or evaluation services to an agency while also competing for or performing work that the advisory services cover. For example, a firm helping an agency write requirements cannot also bid on the resulting contract without mitigation measures.; Read more →
Industry Day BD: An event hosted by a government agency before releasing a solicitation, where they present an upcoming requirement and answer questions from potential bidders. Attending industry days lets you learn about opportunities early, meet the program office, and identify teaming partners. Always go if you can.
iRAPT (Invoice Receipt, Acceptance, and Property Transfer) DLA: The Department of Defense electronic system where you submit invoices and the government confirms receipt and acceptance of your goods or services. If you work on DoD contracts, you get paid through iRAPT. Formerly called WAWF (Wide Area Workflow).

J

Joint Venture TEAMING: A separate business entity formed by two or more companies to bid on a specific contract or set of contracts. Joint ventures let you combine past performance, capabilities, and certifications. Under SBA mentor-protege rules, a small business and its mentor can form a joint venture that still counts as small. Per 13 CFR 125.8(e), the government evaluates JV partners' past performance in aggregate.; Read more →

K

Key Personnel PROPOSALS: Specific individuals named in your proposal who the government requires to work on the contract. The solicitation identifies key personnel positions, and you cannot replace them without government approval. Make sure the people you name are committed and available for the life of the contract.

L

Labor Category (LCAT) PROPOSALS: A defined job role on a government contract with a specific description and billing rate. Examples: Project Manager, Software Developer, Help Desk Technician. On GSA Schedule and IDIQ contracts, your approved labor categories and rates determine what you can charge.
Letter Contract BASICS: A preliminary contract that authorizes you to start work immediately before the final terms are negotiated. Used in urgent situations. The government must finalize the contract within 180 days. Risky for contractors because the final price is not yet agreed upon.
Limitations on Subcontracting SBA: Rules requiring the prime contractor on a set-aside contract to perform a minimum percentage of the work itself. For services, the prime must perform at least 50% of the labor cost. This prevents large companies from using small business fronts to win set-aside contracts.
Login.gov SAM: The federal government single sign-on service you use to access SAM.gov and other government websites. You need a login.gov account before you can start your SAM.gov registration. Set it up at login.gov with a valid email address.
Lowest Price Technically Acceptable (LPTA) PROPOSALS: An evaluation method where the government picks the cheapest proposal that meets all minimum requirements. Unlike best value, there is no extra credit for a superior approach. If you meet the requirements, only price matters. Common for commodity purchases and simple services.

M

MBE (Minority Business Enterprise) STATE/LOCAL: A state-level certification for businesses owned by racial or ethnic minorities. MBE certification is administered by state and local agencies and is separate from the federal 8(a) program. Requirements and benefits vary by state. Many states have percentage goals for contracting with MBEs.
Mentor-Protege Program SBA: An SBA program codified at 13 CFR 125.9 that pairs a small business (protege) with an experienced company (mentor). The mentor provides assistance in up to seven areas: management, financial, contracting, trade education, business development, general/administrative, and engineering. Together they can form joint ventures that qualify as small for the protege's size standard and use the mentor's past performance. Open to all small businesses. Consolidated government-wide in November 2020. Agreements run up to six years, renewable once for twelve years total.; Read more →
Micro-Purchase BASICS: A government purchase below $15,000. No competition is required. The buyer can purchase directly from any qualified source using a government purchase card (credit card). Getting your products or services in front of individual government buyers can generate micro-purchase sales without a formal bid.
MIL-STD (Military Standard) DLA: Technical standards issued by the Department of Defense that specify requirements for materials, processes, or products sold to the military. If a DLA solicitation references a MIL-STD, your product must meet those exact specifications. Check the solicitation carefully for any MIL-STD requirements.
Multiple Award Contract (MAC) GROWTH: A contract awarded to several companies at the same time for the same type of work. When the government needs something, they compete task orders among the contract holders. Winning a MAC does not guarantee revenue, but it puts you in the pool to compete for orders.

N

NAICS Code (North American Industry Classification System) SAM: A six-digit number that classifies your business by industry. The government uses NAICS codes on every solicitation to identify what type of business should bid. Your primary NAICS code determines your small business size standard. You can list multiple NAICS codes in SAM.gov. Look up codes at census.gov/naics.
NASPO ValuePoint STATE/LOCAL: A cooperative purchasing program where one state negotiates a contract and all other states can use it. All 50 states participate. If you win a NASPO ValuePoint contract, state and local agencies across the country can buy from you without separate bids.
Neutral Rating PROPOSALS: The past performance rating assigned to contractors with no record of relevant prior work. Per FAR 15.305(a)(2)(iv), a neutral rating means "no data available." It is not between Satisfactory and Marginal. The government cannot penalize you for being new. Multiple GAO decisions have upheld this protection.; Read more →
NIGP Code STATE/LOCAL: National Institute of Governmental Purchasing commodity code. Used by state and local governments to classify what they buy. Similar to NAICS codes but specific to state and local procurement. When registering with state purchasing portals, you select NIGP codes that match your products or services.
NIST 800-171 COMPLIANCE: A set of 110 cybersecurity requirements published by the National Institute of Standards and Technology for protecting Controlled Unclassified Information (CUI). If you handle CUI on a DoD contract, you must meet these requirements. CMMC Level 2 is based on NIST 800-171 compliance.
No-Bid PROPOSALS: A deliberate decision not to submit a proposal for a specific opportunity. Smart contractors no-bid more often than they bid. If the opportunity does not fit your capabilities, the competition is too strong, or you cannot staff it, walking away saves time and money for the right opportunity.
NSN (National Stock Number) DLA: A 13-digit number assigned to every item in the federal supply system. Used by DLA and the military to identify and catalog products. If you sell supplies to the government, knowing the NSN for your products helps you find relevant solicitations on DIBBS.

O

OCI (Organizational Conflict of Interest) COMPLIANCE: A situation where your other business relationships could give you an unfair advantage or bias your work on a government contract. For example, if you helped write the requirements, you may be barred from bidding. Disclose potential conflicts early. Failing to do so can get you disqualified or debarred.
Option Year BASICS: An additional year the government can add to a contract at its discretion. A typical contract might be "one base year plus four option years." The government is not obligated to exercise options. Good performance increases the likelihood that your options get exercised.
Organizational Structure PROPOSALS: How you describe your team, reporting relationships, and management approach in a proposal. The government wants to see that you have the right people, that roles are clear, and that someone is accountable for every part of the work. Usually presented as an org chart.
OSDBU (Office of Small and Disadvantaged Business Utilization) SBA: The office at each federal agency responsible for promoting small business opportunities. OSDBUs host matchmaking events, answer questions about upcoming contracts, and help small businesses connect with program offices. Every major agency has one. They are free to contact and want to hear from you.; Read more →
Overhead Rate COMPLIANCE: An indirect cost rate covering expenses related to running your operations but not a specific contract. Examples: supervisor salaries, office supplies, equipment depreciation. Typically allocated on direct labor dollars only, not total labor. Your overhead rate is part of your total billing rate to the government.; Read more →

P

Past Performance GROWTH: Your track record on previous contracts. Evaluators check references, CPARS ratings, and contract history. Past performance is one of the most important evaluation factors after price. FAR 15.305(a)(2)(iv) protects new contractors: if you have no record, you receive a neutral rating, not a penalty. Under SBA mentor-protege rules, a joint venture can use either partner's past performance (13 CFR 125.8(e)). Build yours through subcontracting, micro-purchases, state/local contracts, or documented commercial work.; Read more →
Performance Work Statement (PWS) PROPOSALS: A document in the solicitation that describes what results the government wants, not how to achieve them. Your proposal explains your approach to meeting those outcomes. Read the PWS line by line. Every requirement must be addressed in your proposal.
Pipeline BD: Your list of contract opportunities at various stages of pursuit: identified, qualified, capture, proposal, and awaiting award. A healthy pipeline has 10 or more opportunities for every one you want to win. Track your pipeline in a spreadsheet or CRM to stay organized.
Presolicitation Notice PROPOSALS: An early announcement on SAM.gov that an agency plans to issue a solicitation in the future. No proposals are due yet. Use presolicitation notices to start your capture process early, identify the requirement, and find teaming partners before the competition heats up.
Prevailing Wage COMPLIANCE: The minimum pay rate the Department of Labor requires for workers on government construction and service contracts. Set by geographic area and job classification. Applies under the Davis-Bacon Act (construction) and Service Contract Act (services). Factor these rates into your pricing.
Price Evaluation Preference SBA: A bidding advantage given to certain small businesses. For example, HUBZone companies receive a 10% price preference, meaning the government will pay up to 10% more to buy from them instead of a large business. This makes your bid more competitive even if your price is slightly higher.
Prime Contractor TEAMING: The company that holds the direct contract with the government and is responsible for all deliverables. The prime manages subcontractors and takes full responsibility for performance. Being a prime means more control and revenue, but also more risk and compliance obligations.
Procurement Integrity Act BD: A federal law (41 U.S.C. 2102) that prohibits anyone from obtaining or disclosing non-public procurement information before a contract is awarded. This includes source selection data, competitor bid details, and internal evaluation scores. Violations can lead to criminal penalties, contract cancellation, and debarment. The Act sets the legal boundary for capture management activities.; Read more →
Procurement BASICS: The government process of buying goods and services. Procurement includes everything from defining the requirement through awarding the contract. When people say "government procurement," they mean the buying process. It is interchangeable with "acquisition" in everyday conversation.
Prompt Payment Act COMPLIANCE: A federal law requiring the government to pay contractors within 30 days of receiving a proper invoice. If the government pays late, you are entitled to interest. For construction, the deadline is 14 days. This applies to prime contractors and flows down to subcontractor payments.
Proposal PROPOSALS: Your formal written response to a government solicitation explaining how you will do the work, who will do it, and how much it will cost. A typical proposal has a technical volume, management volume, past performance volume, and cost/price volume. Follow the solicitation instructions exactly.
Protest BASICS: A formal challenge to a contract award decision. Filed with GAO, the Court of Federal Claims, or the agency itself. You can protest if you believe the government made errors in the evaluation or violated procurement rules. GAO protests must be filed within 10 days of learning the basis for protest.
Provisional Rate COMPLIANCE: A temporary indirect cost rate you use for billing during the contract year, before your actual costs are finalized. The contracting officer approves provisional rates for billing purposes. After the year ends, you submit actual rates through your incurred cost submission. The difference is settled then.; Read more →
PSC (Product Service Code) BD: A four-character code the government uses to describe what it is buying. Every solicitation has a PSC. Research PSCs related to your business on SAM.gov to find relevant opportunities. PSC codes help you filter through thousands of postings to find the ones that match what you sell.

Q

Quality Assurance Surveillance Plan (QASP) COMPLIANCE: The government plan for monitoring your performance on a contract. It defines what they will check, how often, and what performance standards you must meet. Review the QASP carefully before bidding. It tells you exactly how the government will measure your success or failure.

R

40% Rule (Mentor-Protege) TEAMING: The requirement that the protege in a mentor-protege joint venture must perform at least 40% of the work on any contract the JV wins. Calculated across total contract performance, not per task order. SBA reviews compliance during annual assessments. The rule ensures the protege builds genuine capacity rather than serving as a pass-through for the mentor.; Read more →
Representations and Certifications SAM: See Certifications and Representations. These are the legally binding self-declarations you make in SAM.gov about your business size, ownership, and compliance status. Update them when anything changes. False representations carry serious penalties.
Request for Information (RFI) PROPOSALS: A notice from a government agency asking industry for information about capabilities, potential solutions, or market conditions. Responding to RFIs is not a bid. It is free market research for the agency. But responding shows you exist and can influence how the eventual solicitation is written.
Request for Proposal (RFP) PROPOSALS: A formal government solicitation asking for a detailed proposal that includes your technical approach, management plan, past performance, and pricing. RFPs use negotiated procurement rules (FAR Part 15) and evaluate on best value, not just price. This is the most common solicitation type for services.
Request for Quotation (RFQ) PROPOSALS: A government solicitation focused primarily on price. Used for commercial items and simpler purchases. You submit a quote with your price and basic compliance information. Less complex than an RFP but still requires a complete and timely response.
Rule of Two SBA: The requirement that contracting officers must set aside a contract for small businesses if they expect at least two small businesses can do the work at fair and reasonable prices. This is why small business set-asides exist. It is your best friend in government contracting.

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SAM.gov (System for Award Management) SAM: The federal government official website where you register your business to be eligible for contracts, find contract opportunities, and access award data. Registration is free and required before you can bid on or receive any federal contract. Start at sam.gov.
SBA (Small Business Administration) SBA: The federal agency that supports small businesses through loans, counseling, and contracting programs. For GovCon, SBA runs the 8(a), HUBZone, WOSB, SDVOSB, and mentor-protege programs. They also set the size standards that determine if your business qualifies as small.
SBIR (Small Business Innovation Research) SBA: A competitive federal program that awards contracts to small businesses for research and development. Agencies with large R&D budgets must set aside a percentage for SBIR. Phase I awards are typically $50,000 to $250,000 for feasibility studies. Phase II funds further development up to $1 million or more.
Scope of Work BASICS: The detailed description of the work the government wants performed under a contract. It spells out tasks, deliverables, timelines, and standards. Never perform work outside the scope without a written contract modification from the contracting officer. Work outside scope is work you may not get paid for.
SDVOSB (Service-Disabled Veteran-Owned Small Business) SBA: A set-aside program for small businesses at least 51% owned and controlled by a veteran with a service-connected disability. Certified through the SBA at certify.sba.gov. SDVOSB contracts can be sole-sourced up to $5.5 million for services or $8.5 million for manufacturing.
Service Contract Act COMPLIANCE: A federal law requiring contractors on government service contracts over $2,500 to pay workers at least the prevailing wage and benefits for their job classification and geographic area. Similar to Davis-Bacon but for service workers instead of construction. Check wage determinations before pricing your bid.
Set-Aside SBA: A contract opportunity reserved exclusively for a specific category of small businesses. Only businesses with the matching certification can bid. Types include small business, 8(a), HUBZone, WOSB, EDWOSB, and SDVOSB set-asides. The government has annual goals for how much to award through set-asides.
SF 1408 (Pre-Award Accounting System Survey) COMPLIANCE: A two-page government form used to evaluate whether your accounting system is adequate before awarding a cost-type contract. It checks six elements: cost segregation, direct cost tracking by contract, indirect cost allocation, general ledger control, timekeeping, and billing system controls. Passing this survey is required for cost-reimbursement and T&M contracts.; Read more →
Simplified Acquisition Threshold (SAT) BASICS: The dollar amount ($350,000 as of October 2025) below which the government uses simplified purchasing procedures. Contracts below the SAT are automatically set aside for small businesses unless the contracting officer cannot find two capable small firms. A great entry point for new contractors.
Size Standard SBA: The threshold SBA uses to define whether your business is "small" for a specific NAICS code. Size standards are measured by average annual receipts (5-year average) or number of employees (24-month average). Thresholds range from $2.25 million to $47 million for receipts-based industries and 100 to 1,500 for employee-based industries. Your NAICS code determines which standard applies.; Read more →
SLED Market STATE/LOCAL: State, Local, and Education government market. A collective term for the non-federal government market. SLED spending exceeds $1.5 trillion annually across more than 100,000 government entities. Lower barriers to entry, smaller contracts, and faster procurement cycles make SLED a good starting point for new contractors.
Small Business Subcontracting Plan TEAMING: A plan required on federal contracts over $750,000 ($1.5 million for construction) awarded to large businesses. It describes how the prime contractor will use small business subcontractors. This creates subcontracting opportunities for you. Check large contract awards for subcontracting plan requirements.
Shipley Associates BD: A leading business development and proposal management consultancy that developed the widely used Shipley Capture and Proposal Process. Their methodology breaks the government contracting lifecycle into phases: Long Range Positioning, Opportunity Assessment, Capture Planning, and Proposal Development. Shipley training and certifications are industry standards for BD and capture professionals.; Read more →
Sole Source SBA: A contract awarded to one company without competition. The government can sole-source to 8(a) firms (up to $5.5M services, $8.5M manufacturing), SDVOSB, WOSB, and HUBZone businesses under certain dollar thresholds. Sole source awards require justification but eliminate competition for the winner.
Solicitation PROPOSALS: A formal government document requesting bids or proposals from contractors. Types include RFPs, RFQs, and IFBs. The solicitation contains everything you need to know: what the government wants, how they will evaluate you, and when your response is due. Read every page.
Sources Sought Notice BD: A posting on SAM.gov where an agency asks industry to identify businesses capable of performing a specific type of work. This is market research, not a solicitation. Always respond. It shows you exist, and your response can influence whether the contract gets set aside for small businesses.
Sourcewell STATE/LOCAL: A cooperative purchasing program with over 50,000 member organizations including state and local governments, schools, and nonprofits. Free to join as a buyer. If you win a Sourcewell contract, thousands of public agencies can buy from you without separate competitive bids.
Statement of Work (SOW) PROPOSALS: A contract document that describes exactly what work must be performed, including tasks, deliverables, timelines, and performance standards. More prescriptive than a Performance Work Statement. The SOW tells you how the government wants the work done, not just the desired outcome.
Subcontractor TEAMING: A company that performs part of the work on a government contract under the direction of the prime contractor. Subcontracting is a common way for new businesses to gain past performance without the risk of being the prime. A 2022 FAR rule allows first-tier small business subcontractors to receive CPARS evaluations. The prime pays you, not the government directly.; Read more →
SubNet TEAMING: An SBA online database where large prime contractors post subcontracting opportunities for small businesses. Free to use. If you are looking for subcontracting work, SubNet is where large firms advertise what they need. Check it regularly at subnet.sba.gov.; Read more →

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Task Order GROWTH: A specific work assignment issued under an existing IDIQ or multiple-award contract. Each task order defines a particular project, timeline, and budget. Winning the parent contract gives you the right to compete for task orders. Most of your revenue comes from winning individual task orders.
Teaming Agreement TEAMING: A written agreement between two or more companies to work together on a specific government proposal. It defines roles, work share, and terms before you submit the bid. Teaming agreements can be binding or non-binding. Get one in writing before sharing proprietary information or investing in a proposal.
Technical Approach PROPOSALS: The section of your proposal explaining how you will perform the work. This is usually the most important evaluation factor. Do not restate the requirements. Instead, explain your specific methods, tools, processes, and why your approach will succeed. Be detailed and specific.
Technical Evaluation PROPOSALS: The government review of the non-price portions of your proposal, including your technical approach, management plan, past performance, and key personnel. A panel of government evaluators scores each proposal against the stated evaluation criteria. Higher technical scores increase your chances of winning.
Termination for Convenience COMPLIANCE: The government right to cancel a contract at any time for any reason, even if you are performing well. This clause is in almost every federal contract. You get paid for work already completed and reasonable termination costs, but the contract ends. It is not a penalty.
Termination for Default COMPLIANCE: When the government cancels your contract because you failed to perform. This is serious. You may owe the government money, you get a negative CPARS rating, and it can affect your ability to win future contracts. If you are falling behind, communicate with the contracting officer before it reaches this point.
Time and Materials (T&M) BASICS: A contract type where the government pays you a fixed hourly rate for labor plus the actual cost of materials. Used when the scope of work is uncertain. Less risky than firm fixed price because you bill for actual hours worked. Requires a not-to-exceed ceiling that limits total spending.
Total Cost Input (TCI) COMPLIANCE: The allocation base used to calculate your General and Administrative (G&A) indirect cost rate. TCI equals all costs except G&A costs: direct labor, fringe benefits on direct labor, overhead applied to contracts, and direct materials or subcontract costs. Because TCI is the broadest allocation base, G&A rates are typically the lowest of the three standard indirect rates.; Read more →
Trade Agreements Act (TAA) COMPLIANCE: A law requiring products sold to the government through GSA Schedule and certain other contracts to be made in the U.S. or a designated TAA-compliant country. If you sell products on a GSA Schedule, they must be TAA-compliant. Products made in China, India, and other non-designated countries do not qualify.

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UEI (Unique Entity Identifier) SAM: A 12-character code assigned to your business when you register on SAM.gov. It replaced the old DUNS number in April 2022. You need a UEI to bid on any federal contract. It is assigned automatically during SAM.gov registration at no cost.
Unallowable Cost COMPLIANCE: An expense the government will not reimburse on a contract. Common unallowable costs include entertainment, alcohol, lobbying, fines, and bad debt. FAR Part 31 lists them. On cost-type contracts, billing unallowable costs can trigger repayment demands and a penalty of up to two times the disallowed amount, plus interest, under FAR 42.709. Know the list before you bill.; Read more →
Unpopulated Joint Venture TEAMING: A joint venture with no permanent employees of its own. When the JV wins a contract, each partner contributes its existing staff to perform the work. Most mentor-protege joint ventures are unpopulated. This keeps overhead low and avoids building a separate workforce. The JV still registers in SAM.gov and receives its own UEI.; Read more →
Unrestricted BASICS: A contract opportunity open to all businesses regardless of size or certifications. When a solicitation says "unrestricted" or "full and open," both small and large businesses can compete. You will be going up against bigger firms, so your proposal needs to be sharp.
USAspending.gov BD: A free government website that tracks all federal spending, including contract awards. Use it to research which agencies spend money on what you sell, who currently holds those contracts, and how much they are getting paid. Essential homework before you start bidding.

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Value Engineering GROWTH: A process for proposing changes to a contract that reduce costs without reducing quality or performance. If your idea saves the government money, you may share in the savings. Value engineering proposals are voluntary and can improve your relationship with the contracting agency.
VOSB (Veteran-Owned Small Business) SBA: A small business at least 51% owned and controlled by one or more veterans. While VOSB status does not have its own federal set-aside program (SDVOSB does), some agencies and many state governments give preference to veteran-owned businesses. You can self-certify as VOSB in SAM.gov.

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Wage Determination COMPLIANCE: A document from the Department of Labor listing the minimum wage rates and fringe benefits you must pay workers on a government contract, by location and job classification. Issued under the Service Contract Act or Davis-Bacon Act. Every service or construction solicitation includes one. Use it to price your labor.
WBE (Woman Business Enterprise) STATE/LOCAL: A state-level certification for businesses that are at least 51% owned and controlled by women. WBE is separate from the federal WOSB program. Each state runs its own certification process with its own requirements. Many states and cities set contracting goals for WBE participation.
Win Themes BD: The three to five core reasons you believe the agency should select your company over the competition. Win themes are developed during capture management and become the backbone of your proposal. Each win theme should connect a specific customer need to a specific strength you offer, backed by evidence like past performance or technical capability.; Read more →
Win Rate BD: The percentage of proposals you submit that result in a contract award. New GovCon businesses typically win 5% to 15% of bids. Experienced firms win 25% to 40%. Track your win rate to measure improvement. A low win rate means you need better bid/no-bid decisions or stronger proposals.
WOSB (Women-Owned Small Business) SBA: An SBA program for small businesses that are at least 51% owned and controlled by women. WOSB certification enables you to compete for set-aside contracts in industries where women are underrepresented. Certify through certify.sba.gov or an SBA-approved third-party certifier.
Work Breakdown Structure (WBS) PROPOSALS: A way of breaking a project into smaller, manageable pieces for planning and pricing. Each piece has a defined task, deliverable, and cost. Government proposals often require a WBS to show you understand the full scope of work. It also helps you estimate costs more accurately.
Wrap Rate COMPLIANCE: Your total billing rate to the government, including the base labor cost plus all indirect rates (fringe, overhead, G&A) and profit. If you pay an employee $30 per hour and your wrap rate multiplier is 2.5x, your billing rate is $75 per hour. Understanding your wrap rate is essential for pricing proposals profitably.; Read more →

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Now That You Know the Terms, Here's Your Next Step

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