20 government contracting terms defined for government contractors, with plain-English explanations and answers to the questions contractors actually ask.
A variable fee in a government contract earned based on periodic government evaluation of contractor performance, designed to incentivize exceptional results.
A simplified ordering arrangement that establishes charge accounts with qualified vendors for repetitive purchases, streamlining procurement without creating a binding minimum-quantity contract.
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.
A one-to-two-page marketing document that summarizes your company's core competencies, past performance, and differentiators for government contracting.
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.
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.
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.
North American Industry Classification System codes that categorize businesses by their primary type of economic activity, used to determine small business eligibility.
A unilateral government right included in a contract that allows the agency to extend performance for additional time periods without re-competing the work.
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.
A contractual arrangement between two or more companies to collaborate on a government bid, defining their roles, responsibilities, and relationship as prime and subcontractors.
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.
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.