Glossary

The words you'll meet in a federal contract notice, in plain English.

8(a) program: An SBA program for small businesses owned and controlled by socially and economically disadvantaged individuals. Participants can win 8(a) set-asides and some sole-source contracts during the nine-year program. Read more.
Amendment: A change to a solicitation after it is posted, such as a new deadline or answers to questions. Bidders must acknowledge every amendment.
Award notice: A SAM.gov notice saying who won a contract and for how much.
Bid bond: A guarantee submitted with a bid that the bidder will sign the contract and provide the required bonds if it wins. Usually at least 20% of the bid price on federal construction. Read more.
CAGE code: A five-character code that identifies a contractor's location. It is assigned as part of SAM.gov registration. Read more.
Capability statement: A one or two-page summary of what your company does, its codes, past work and contact details. Often requested in sources sought notices.
Combined synopsis/solicitation: A notice that announces and solicits at the same time, mostly for commercial products and services. Read more.
Contracting officer: The government official with authority to award and sign the contract. Questions go to them, in writing, before the deadline.
Davis-Bacon Act: Requires federal construction contractors to pay at least locally prevailing wages and fringe benefits, set by the Department of Labor, on contracts over $2,000. Read more.
EDWOSB: Economically disadvantaged women-owned small business. Certified by the SBA; can bid on EDWOSB set-asides. Read more.
FAR: Federal Acquisition Regulation: the rules for how executive agencies buy. Agencies such as the Department of Defense add their own supplements (DFARS).
HUBZone: Historically Underutilized Business Zone. SBA-certified small businesses based in these areas, with at least 35% of employees living in one, can bid on HUBZone set-asides. Read more.
IDIQ: Indefinite delivery, indefinite quantity contract. An agreement under which the agency issues task orders over time, often to a pool of pre-selected contractors.
IFB: Invitation for bids. Sealed bidding where the lowest price from a responsive, responsible bidder wins. Read more.
Magnitude of construction: The price range an agency gives for a construction project, such as between $1 million and $5 million.
Miller Act: The law requiring performance and payment bonds on federal construction contracts over $150,000. Read more.
NAICS code: A six-digit industry code. Each federal notice has one, and it sets the size standard for small business set-asides. Read more.
Past performance: Your record on previous contracts. In negotiated procurements it is often a major evaluation factor.
Presolicitation: A notice that a solicitation is coming, with the expected scope and date. Read more.
Responsive and responsible: A responsive bid meets every requirement of the solicitation. A responsible bidder can actually perform: money, equipment, experience and integrity.
RFP: Request for proposals. A negotiated procurement where the agency can weigh technical approach and past performance as well as price. Read more.
RFQ: Request for quotations, common for smaller and simpler purchases.
Rule of two: The FAR rule that a contract must be set aside for small businesses when at least two responsible small businesses are expected to offer fair prices. Read more.
SAM.gov: The System for Award Management, where businesses register to work with the government and where contract notices are published. Read more.
SDVOSB: Service-disabled veteran-owned small business, certified through the SBA's VetCert program. Read more.
Set-aside: A contract reserved for a certain kind of business, such as small businesses or HUBZone firms. Read more.
SF 1442: The standard form used for construction solicitations, offers and awards.
Size standard: The SBA limit, in average annual receipts or employees, under which a business counts as small for a given NAICS code. Read more.
Sole source: A contract awarded to one company without competition, which the agency must justify.
Solicitation number: The agency's reference for a procurement. It stays the same across amendments and is the best way to follow a job.
Sources sought: Market research notice. Answering it can persuade the agency to set the job aside for small businesses. Read more.
Unique Entity ID: The 12-character identifier SAM.gov assigns to every registered business. It replaced the DUNS number in 2022. Read more.
Wage determination: The Department of Labor list of minimum wage rates and fringe benefits for a contract, attached to the solicitation. Read more.
WOSB: Women-owned small business, certified by the SBA, eligible for WOSB set-asides in designated industries. Read more.