Government Contracting

20 government contracting terms defined for government contractors, with plain-English explanations and answers to the questions contractors actually ask.

Award Fee
A variable fee in a government contract earned based on periodic government evaluation of contractor performance, designed to incentivize exceptional results.
Blanket Purchase Agreement (BPA)
A simplified ordering arrangement that establishes charge accounts with qualified vendors for repetitive purchases, streamlining procurement without creating a binding minimum-quantity contract.
CAGE Code
A five-character identifier assigned by the Defense Logistics Agency to commercial entities doing business with the U.S. Department of Defense and allied defense organizations.
Capability Statement
A one-to-two-page marketing document that summarizes your company's core competencies, past performance, and differentiators for government contracting.
Contract Vehicle
A pre-established contract mechanism that allows agencies to buy goods and services more efficiently by bypassing the need for full and open competition on every purchase.
Contracting Officer (CO)
The government official with legal authority to award, administer, and terminate contracts on behalf of a federal agency.
Cost-Reimbursement Contract
A contract type under which the government reimburses the contractor's allowable incurred costs plus a fee, used when risk or uncertainty is too high for a fixed-price arrangement.
Firm Fixed Price (FFP) Contract
A contract type that establishes a set price that does not change regardless of actual cost, placing all cost risk on the contractor.
GovCon (Government Contracting)
Industry shorthand for government contracting — the business of selling goods and services to federal, state, or local government agencies.
GSA Schedule (Multiple Award Schedule)
A long-term government-wide contract vehicle administered by the General Services Administration that allows agencies to purchase commercial products and services at pre-negotiated prices.
Indefinite Delivery/Indefinite Quantity (IDIQ)
A contract type that provides for an indefinite quantity of supplies or services over a fixed period, with delivery orders placed as needed.
NAICS Codes
North American Industry Classification System codes that categorize businesses by their primary type of economic activity, used to determine small business eligibility.
Option Period
A unilateral government right included in a contract that allows the agency to extend performance for additional time periods without re-competing the work.
Period of Performance (POP)
The time span during which a contractor is authorized to perform work under a contract, beginning at the start date and ending at contract expiration.
SAM.gov (System for Award Management)
The official U.S. government system where contractors must register to do business with federal agencies and where contract opportunities are posted.
Sole Source Contract
A government contract awarded to a single vendor without full and open competition, permitted under specific legal exceptions in the FAR.
Task Order
A work order placed under an existing IDIQ or contract vehicle that defines the scope, period of performance, and funding for a specific piece of work.
Teaming Agreement
A contractual arrangement between two or more companies to collaborate on a government bid, defining their roles, responsibilities, and relationship as prime and subcontractors.
Time-and-Materials (T&M) Contract
A contract type that pays contractors fixed hourly labor rates plus the actual cost of materials, typically used when the scope of work cannot be precisely defined at contract award.
UEI (Unique Entity Identifier)
The 12-character alphanumeric code assigned by SAM.gov that replaced the DUNS number as the required identifier for all entities doing business with the federal government.

Other categories

🤖 /llms.txt