Government Contracting Glossary

ACAT

Acquisition Category

Acquisition Category (ACAT) is a DoD classification system that determines the level of oversight, review authority, and reporting requirements for defense acquisition programs based on their dollar value and importance.

CAGE Code

Commercial and Government Entity Code

A CAGE code is a five-character alphanumeric identifier assigned to companies that do business with the federal government. It's used to identify facilities and entities in defense and federal logistics systems. A CAGE code is automatically assigned when you register in SAM.gov.

CDRL

Contract Data Requirements List

A CDRL (Contract Data Requirements List, pronounced 'see-drill') is the formal list of all data deliverables required under a DoD contract. Each CDRL item specifies what document or data the contractor must deliver, when, in what format, and to whom.

CLIN

Contract Line Item Number

A CLIN (Contract Line Item Number) is a unique identifier assigned to each separately priced item or service in a government contract. CLINs are the fundamental building blocks of contract pricing — they organize what the government is buying, how much each element costs, how work will be invoiced, and how contract funds are tracked and obligated.

COR

Contracting Officer's Representative

A Contracting Officer's Representative (COR) is a government employee designated in writing by the Contracting Officer to monitor and evaluate contractor performance day-to-day. The COR is the contractor's primary point of contact during performance — but has no authority to modify the contract, obligate funds, or direct changes.

CPARS

Contractor Performance Assessment Reporting System

CPARS is the official federal system for recording and accessing contractor past performance evaluations. Ratings entered in CPARS are available to all federal Source Selection Authorities and are one of the most heavily weighted factors in competitive proposal evaluations.

CTO

Communications Tasking Order

A Communications Tasking Order (CTO) is a directive issued by a Joint Force or service-component communications authority that assigns specific communications missions, frequencies, equipment configurations, and reporting requirements to subordinate units. CTOs translate higher-level communications planning into executable taskings, similar to how an Air Tasking Order (ATO) translates air-component planning into specific sorties.

DUNS Number

Data Universal Numbering System

The DUNS number was a nine-digit business identifier issued by Dun & Bradstreet, formerly required for federal contractor registration. As of April 4, 2022, the DUNS number was replaced by the UEI (Unique Entity Identifier) generated through SAM.gov.

FAR

Federal Acquisition Regulation

The Federal Acquisition Regulation (FAR) is the principal set of rules governing how the U.S. federal government purchases goods and services. Codified in Title 48 of the Code of Federal Regulations, the FAR covers the entire procurement lifecycle — from how solicitations are written and published, to how proposals are evaluated, contracts are awarded, performance is managed, and disputes are resolved.

FPDS

Federal Procurement Data System

FPDS is the federal government's database of all contract award data. It records every federal contract action — who won, how much, under what NAICS code, which agency, and whether it was competitive or sole-source. As of February 2026, FPDS data is now accessed through SAM.gov.

GFE

Government-Furnished Equipment

Government-Furnished Equipment (GFE) is equipment owned by the government and provided to a contractor for use in performing a contract. The contractor is responsible for proper use, maintenance, and accountability of all GFE during the contract period.

GFM

Government Furnished Material

Government Furnished Material (GFM) refers to property, equipment, materials, or information that the government provides to the contractor for use in performing a contract. The contractor does not purchase GFM — the government supplies it and retains ownership.

IAW

In Accordance With

IAW (In Accordance With) is a standard abbreviation used in government contracts, military documents, and procurement specifications to indicate that an action, product, or service must comply with a referenced standard, regulation, or document.

IFB

Invitation for Bids

An Invitation for Bids (IFB) is a solicitation used in sealed bidding, where the government awards a contract to the lowest-priced responsive and responsible bidder. Unlike RFPs, IFBs do not evaluate technical approach or past performance — price is the sole determining factor.

IOC

Initial Operational Capability

Initial Operational Capability (IOC) is the milestone when a new defense system or capability is first available for operational use, though not yet at full capacity. IOC means the first unit is equipped, trained, and able to employ the system in its intended mission.

LOE

Level of Effort

Level of Effort (LOE) refers to a type of contract or task that is measured by the amount of labor hours applied rather than specific deliverables or outcomes. LOE contracts pay for a defined number of labor hours over a period, regardless of what is produced.

NAICS

North American Industry Classification System

NAICS codes are six-digit codes that classify businesses by industry. In government contracting, your NAICS code determines which contracts you're eligible for, your small business size standard, and how agencies categorize procurements. Every federal solicitation is assigned at least one NAICS code.

NTE

Not to Exceed

NTE (Not to Exceed) is a contract term that sets a maximum price ceiling on a contract, task order, or line item. The contractor cannot bill above the NTE amount without a formal contract modification, even if actual costs exceed the ceiling.

OGA

Other Government Agency

OGA (Other Government Agency) is a general term used in government contracting to refer to any federal agency outside the one issuing a particular contract or document. It's commonly used when describing interagency agreements, shared services, or work performed for agencies other than the contracting agency.

POC

Point of Contact

POC (Point of Contact) is the designated person responsible for communications regarding a specific solicitation, contract, or program. In government contracting, the POC is your primary channel for questions, submissions, and coordination.

POM

Program Objective Memorandum

The Program Objective Memorandum (POM) is the document each military service submits to the Secretary of Defense outlining its proposed budget and program priorities for the next five years. The POM drives which programs get funded — and therefore which contracts get awarded.

PSC

Product and Service Code

A Product and Service Code (PSC) is a four-character alphanumeric code used by the federal government to classify what is being purchased in a contract — describing the product or service itself, as distinct from NAICS codes which classify the industry of the seller.

PWS

Performance Work Statement

A Performance Work Statement (PWS) is an outcome-based description of contract requirements that defines what the government wants achieved — the results, standards, and performance levels — without prescribing how the contractor must accomplish it. It is increasingly the preferred solicitation format for services, particularly in DoD.

RFI

Request for Information

RFI stands for Request for Information — a pre-solicitation document issued by government agencies to gather market intelligence, identify potential vendors, and refine requirements before issuing a formal RFP or RFQ. An RFI is not a solicitation: responding to an RFI does not obligate either party, it does not guarantee a future contract, and it carries no binding commitments.

RFP

Request for Proposal

A Request for Proposal (RFP) is a formal solicitation document issued by a government agency inviting vendors to submit detailed proposals for goods or services. RFPs evaluate submissions based on technical approach, past performance, management capability, and price — not just the lowest bid.

RFQ

Request for Quotation

A Request for Quotation (RFQ) is a solicitation document used when the government needs a price quote for well-defined goods or services. RFQs are simpler than RFPs and are typically used for commodity purchases where specifications are clear and the award goes to the lowest-priced technically acceptable vendor.

ROM

Rough Order of Magnitude

A Rough Order of Magnitude (ROM) is a preliminary cost estimate used in government contracting to approximate the expected cost of a project or requirement before detailed specifications are available. ROMs are typically accurate within -25% to +75% of the final cost.

SAM

System for Award Management

SAM.gov (System for Award Management) is the official U.S. government website where businesses register to do business with the federal government, where all federal contract opportunities over $25,000 are posted, and where contract award data (formerly FPDS) is now searched. SAM.gov registration is free, mandatory for federal contractors, and must be renewed annually.

SOW

Statement of Work

A Statement of Work (SOW) is the section of a government solicitation that describes exactly what the contractor must deliver. It specifies tasks, deliverables, timelines, performance standards, and acceptance criteria. The SOW is the contractual document against which your performance will be measured.

SPO

System Program Office

A System Program Office (SPO) is the government organization responsible for managing the acquisition, development, testing, and fielding of a specific weapon system or major program. The SPO is led by a Program Manager (PM) and serves as the primary interface between the government and contractors.

UEI

Unique Entity Identifier

The Unique Entity Identifier (UEI) is a 12-character alphanumeric ID assigned to every entity registered in SAM.gov. It replaced the DUNS number in April 2022 as the primary identifier for government contractors.

UNSPSC

United Nations Standard Products and Services Code

UNSPSC is an open, eight-digit hierarchical classification system that uniquely identifies every product and service used in commerce. Managed by GS1 US under license from the United Nations Development Programme, UNSPSC is widely used by state and local government procurement systems, healthcare buying consortia, and large corporate procurement platforms. While NAICS is the federal default for industry classification, UNSPSC is the international default for line-item product/service classification — and any U.S. contractor selling to non-federal government buyers will encounter it.

USASpending

USASpending.gov

USASpending.gov is the official open data source for all federal government spending — contracts, grants, loans, and other financial assistance. It provides searchable access to who received federal dollars, how much, from which agency, and for what purpose.

BAFO

Best and Final Offer

A Best and Final Offer (BAFO) is a request by a government agency for offerors to revise their proposals before final contract award. Formally renamed 'Final Proposal Revision (FPR)' under the FAR, BAFO remains the universally used term in the industry.

Best Value

Best Value Source Selection

Best Value Source Selection is a procurement approach where the government evaluates proposals on multiple factors — including technical approach, past performance, management capability, and price — and awards to the offeror representing the best overall value, not necessarily the lowest price.

Bid Protest

Bid Protest

A bid protest is a formal legal challenge filed by a disappointed offeror contesting either the terms of a solicitation or the award decision made by a government agency. Protests can be filed at the agency level, before the Government Accountability Office (GAO), or at the Court of Federal Claims (COFC).

Bid/No-Bid

Bid/No-Bid Decision

A bid/no-bid decision is the structured evaluation process contractors use to determine whether pursuing a specific RFP is worth the investment of time and resources. A disciplined bid/no-bid process is one of the strongest predictors of a contractor's win rate.

Capability Statement

Capability Statement

A capability statement (or cap statement) is a one-to-two page marketing document that summarizes your company's competencies, past performance, certifications, and differentiators for government buyers. It's the government contracting equivalent of a resume — the first document a contracting officer or prime contractor will ask for.

Capture Management

Capture Management

Capture management is the strategic process of positioning a company to win a specific government contract before the RFP is formally released. It involves customer engagement, competitive intelligence, teaming decisions, and win theme development — activities that determine whether a proposal wins before a word is written.

CO / KO

Contracting Officer

A Contracting Officer (CO, sometimes abbreviated KO) is the only government official authorized to enter into, modify, or terminate a federal contract. No other government employee can bind the government to a contractual obligation — only the CO has that legal authority.

Competitive Range

Competitive Range Determination

The competitive range is the subset of proposals that a federal contracting officer determines have a reasonable chance of being selected for award. After initial evaluation, the CO eliminates proposals that are technically unacceptable or have no realistic chance of winning — only proposals in the competitive range proceed to discussions and final evaluation.

Compliance Matrix

Compliance Matrix (Proposal Traceability Tool)

A compliance matrix is a structured document — usually a spreadsheet or table — that maps every requirement from an RFP's Section L (Instructions) and Section M (Evaluation Factors) to the exact location in your proposal where that requirement is addressed. It is the single most important quality control tool in proposal development.

Cooperative Purchasing

Cooperative Purchasing / Piggyback Contracts

Cooperative purchasing allows government agencies to buy goods and services through contracts competitively awarded by another agency, without running their own procurement. Programs like SourceWell, BuyBoard, TIPS-USA, and PEPPM enable vendors to win one contract and sell to thousands of agencies nationwide.

E-Rate

E-Rate (Schools and Libraries Universal Service Support)

E-Rate is an FCC program that provides discounts of 20-90% on telecommunications, internet access, and internal connections for eligible schools and libraries. E-Rate funded procurements represent billions in annual spending and are posted through USAC's EPC (E-Rate Productivity Center) portal.

EO

Executive Order

An Executive Order (EO) is a directive issued by the President of the United States that manages operations of the federal government. EOs can create new procurement requirements, set policy for federal contractors, and change contracting rules without Congressional action.

eProcurement

Electronic Procurement (eProcurement)

eProcurement is the use of electronic systems and platforms to manage the purchasing process — from posting solicitations and receiving bids to evaluating proposals and awarding contracts. Most federal, state, and local government agencies now use eProcurement portals as their primary channel for publishing RFPs and RFQs.

FedBizOpps

FedBizOpps (Federal Business Opportunities / FBO)

FedBizOpps — short for Federal Business Opportunities and commonly called FBO — was the U.S. federal government's primary website for posting contract opportunities over $25,000. It operated from 2001 until November 2019, when it was replaced by SAM.gov's contract opportunities module.

GovCon

GovCon (Government Contracting)

GovCon is the widely used abbreviation for government contracting — the industry of selling products and services to federal, state, and local government agencies. The term encompasses everything from winning contracts and managing compliance to the broader ecosystem of contractors, subcontractors, consultants, and technology platforms that support government procurement.

LPTA

Lowest Price Technically Acceptable

Lowest Price Technically Acceptable (LPTA) is a source selection method where the government awards the contract to the lowest-priced offeror whose proposal meets the minimum technical requirements. Technical evaluation is binary — acceptable or unacceptable — and price is the only differentiator among acceptable offers.

NASPO ValuePoint

NASPO ValuePoint (National Association of State Procurement Officials)

NASPO ValuePoint is the cooperative purchasing arm of the National Association of State Procurement Officials. It creates competitively solicited, multi-state contracts that allow state and local agencies across all 50 states to buy from pre-approved vendors without running their own procurements. Think of it as the state-level equivalent of the federal GSA Schedule.

OCI

Organizational Conflict of Interest

An Organizational Conflict of Interest (OCI) exists when a contractor's relationships, prior work, or access to information creates an unfair advantage in a competition or impairs the contractor's ability to give impartial advice to the government. OCIs are governed by FAR Subpart 9.5.

Past Performance

Past Performance

Past performance is a key evaluation factor in government contract proposals, referring to a vendor's track record of delivering on previous contracts. Federal agencies use past performance assessments to predict how well a contractor will perform on a new contract.

Proposal Management

Proposal Management (Government Contracting)

Proposal management is the structured process of planning, developing, reviewing, and submitting a proposal in response to a government RFP. It encompasses everything from the initial bid/no-bid decision through the final submission — including compliance checks, writing assignments, color team reviews, pricing, and production.

Pwin

Pwin (Probability of Win)

Pwin — probability of win — is a percentage score estimating how likely you are to win a specific government contract opportunity. Used in capture management and bid/no-bid decisions, Pwin helps contractors prioritize their pipeline by focusing resources on pursuits where they have the strongest competitive position.

SAP

Simplified Acquisition Procedures

Simplified Acquisition Procedures (SAP) are streamlined purchasing methods used by federal agencies for procurements under the Simplified Acquisition Threshold (SAT), currently $250,000. SAP reduces paperwork and accelerates the procurement process for both the government and vendors.

Section L / Section M

Section L / Section M (RFP Instructions & Evaluation Factors)

Section L and Section M are the two most critical sections of a federal solicitation. Section L contains the Instructions to Offerors — what to submit, page limits, and format requirements. Section M contains the Evaluation Factors — how proposals will be scored, the relative importance of each criterion, and the basis for award.

Single Source vs Sole Source

Single Source vs Sole Source: Key Differences

Sole source means only one vendor exists that can provide the product or service — there is literally no alternative. Single source means multiple vendors could provide it, but the agency chooses to solicit from only one, usually based on past performance, standardization needs, or strategic reasons. The distinction matters because they trigger different procurement rules.

SLED

State, Local, and Education

SLED is an industry acronym for the three tiers of government procurement below the federal level: state agencies, local governments (cities, counties, special districts), and education institutions (K-12 school districts, public universities). SLED agencies collectively spend over $2 trillion annually — more than the entire federal procurement budget.

Small Business Set-Aside

Small Business Set-Aside (Federal Procurement)

A small business set-aside is a federal contracting requirement that restricts competition on a contract to small businesses only. Under FAR 19.5, contracting officers must set aside acquisitions over $250,000 for small businesses when there is a reasonable expectation that at least two responsible small business concerns will submit competitive offers at fair market prices.

Sole Source Justification

Sole Source Justification (J&A)

A sole source justification — formally called a Justification and Approval (J&A) — is a written document that explains why a federal contract should be awarded to a single vendor without full and open competition. Required under FAR Part 6.3, it must demonstrate that only one responsible source can satisfy the requirement.

Sole Source Letter

Sole Source Letter (Vendor Request for Sole Source Consideration)

A sole source letter is a document a vendor sends to a contracting officer requesting that a contract be awarded on a non-competitive, sole-source basis. It makes the case that you are the only vendor capable of meeting the requirement — giving the CO the justification they need to bypass full and open competition.

Source Selection

Source Selection

Source selection is the formal government process of evaluating competing proposals and selecting the winning contractor for a best-value procurement. It involves a structured evaluation by a Source Selection Evaluation Board (SSEB), culminating in an award decision by the Source Selection Authority (SSA).

Teaming Agreement

Teaming Agreement

A teaming agreement is a pre-proposal contract between two or more companies agreeing to pursue a specific government opportunity together, typically defining the prime/subcontractor relationship, work share percentages, and mutual obligations before a solicitation is released or a proposal is submitted.

Types of Government Contracts

Types of Government Contracts Explained

Government contracts fall into three main pricing families: fixed-price (the contractor bears cost risk), cost-reimbursement (the government bears cost risk), and time-and-materials/labor-hour (risk is shared). Within each family are several subtypes defined in FAR Part 16 that allocate risk, profit incentives, and administrative burden differently.

USC

United States Code

The United States Code (USC) is the official compilation of all federal statutes organized by subject area into 54 titles. Government contracts frequently reference USC sections as the legal authority for procurement rules, contractor obligations, and program requirements.

8(a)

8(a) Business Development Program

The 8(a) Business Development Program is an SBA program that helps small, disadvantaged businesses compete for federal contracts. Participants can receive sole-source contracts up to $4.5 million (services) or $7 million (manufacturing) without competition, plus access to mentoring, training, and technical assistance.

AbilityOne Program

AbilityOne Program

The AbilityOne Program is a federal mandatory source program that requires government agencies to purchase certain products and services from qualified nonprofit agencies (NPAs) that employ people who are blind or have significant disabilities. It represents approximately $4 billion in annual federal procurement.

DBE / MBE / WBE

Disadvantaged Business Enterprise / Minority Business Enterprise / Women's Business Enterprise

DBE, MBE, and WBE are state and local certification programs that provide contracting preferences for disadvantaged, minority-owned, and women-owned businesses. Unlike federal set-asides (8(a), SDVOSB, HUBZone), these certifications are issued at the state or local level and vary by jurisdiction.

HUBZone

Historically Underutilized Business Zone

The HUBZone program helps small businesses in economically distressed areas gain access to federal contracting opportunities. HUBZone-certified firms can receive sole-source contracts up to $4.5 million (services) or $7 million (manufacturing) and a 10% price evaluation preference in full and open competitions.

Mentor-Protégé Program

Mentor-Protégé Program

The Mentor-Protégé Program, administered by the SBA, pairs large businesses (mentors) with small businesses (protégés) to help small businesses develop the technical and business capabilities needed to win and perform on federal contracts.

SDVOSB

Service-Disabled Veteran-Owned Small Business

SDVOSB is a federal certification for small businesses that are at least 51% owned and controlled by service-disabled veterans. SDVOSB firms are eligible for sole-source contracts up to $5 million and receive mandatory set-aside priority at the VA under the Veterans First program.

WOSB / EDWOSB

Women-Owned Small Business / Economically Disadvantaged Women-Owned Small Business

The WOSB Federal Contract Program authorizes agencies to set aside certain contracts for women-owned small businesses. EDWOSB (Economically Disadvantaged WOSB) firms have access to an even broader set of set-aside opportunities across more NAICS code industries.

DCAA

Defense Contract Audit Agency

The Defense Contract Audit Agency (DCAA) is an independent DoD agency that audits contractor accounting systems, incurred costs, and forward pricing proposals to ensure the government pays only allowable, allocable, and reasonable costs on cost-reimbursement and other negotiated contracts.

DCMA

Defense Contract Management Agency

The Defense Contract Management Agency (DCMA) is the DoD component responsible for contract administration on defense contracts. DCMA ensures that defense contractors fulfill their contractual obligations on time, at the agreed cost, and at the required quality level.

DLA

Defense Logistics Agency

The Defense Logistics Agency is the DOD's combat logistics support agency, managing the global supply chain for the military. DLA procures and distributes food, fuel, medical supplies, uniforms, construction materials, spare parts, and other supplies used by all military branches.

DOD

Department of Defense

The Department of Defense (DOD or DoD) is the largest single buyer in the U.S. government, awarding over $400 billion in contracts annually across military services, defense agencies, and combatant commands. DOD procurement spans everything from advanced weapons systems and cybersecurity to janitorial services and office supplies.

GAO

Government Accountability Office

The Government Accountability Office is an independent agency that audits federal spending and investigates how taxpayer dollars are used. For government contractors, GAO is most relevant as the venue for bid protests — formal challenges to contract award decisions.

GSA

General Services Administration

The General Services Administration manages government-wide contracts, purchasing vehicles, and shared services that other federal agencies use to buy goods and services. GSA's Multiple Award Schedules (MAS) program is one of the most widely used contracting vehicles in federal procurement.

OSD

Office of the Secretary of Defense

The Office of the Secretary of Defense (OSD) is the principal staff element of the Secretary of Defense, responsible for policy development, resource management, and oversight of all DoD components. OSD sets acquisition policy that governs how all defense contracts are awarded and managed.

SBA

Small Business Administration

The U.S. Small Business Administration is the federal agency responsible for supporting small businesses, including managing government contracting certification programs (8(a), HUBZone, SDVOSB, WOSB), setting small business size standards, and advocating for small business participation in federal procurement.

BPA

Blanket Purchase Agreement

A Blanket Purchase Agreement is a simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources. BPAs allow agencies to make purchases quickly without processing individual purchase orders each time.

CPAF

Cost-Plus-Award-Fee Contract

A Cost-Plus-Award-Fee (CPAF) contract reimburses allowable costs, pays a small base fee, and adds a subjective award fee evaluated periodically by an Award Fee Board based on contractor performance quality. It is used for large service contracts where performance quality — not just cost — is the government's primary concern.

CPFF

Cost-Plus-Fixed-Fee Contract

A Cost-Plus-Fixed-Fee (CPFF) contract reimburses the contractor for all allowable incurred costs plus a fixed fee negotiated at award. It is the most common cost-reimbursement contract type and is used for R&D, complex defense programs, and work where costs cannot be reliably estimated in advance.

CPIF

Cost-Plus-Incentive-Fee Contract

A Cost-Plus-Incentive-Fee (CPIF) contract reimburses allowable costs and pays a fee that varies based on how actual costs compare to a negotiated target cost. It is used in defense acquisitions where the government wants to incentivize cost control while sharing risk with the contractor.

FFP

Firm Fixed-Price Contract

A Firm Fixed-Price (FFP) contract is a contract type where the price is set at award and does not change regardless of the contractor's actual costs. FFP is the most common federal contract type — accounting for roughly 55% of all federal contract dollars — and the government's preferred contract type because it transfers all cost risk to the contractor and incentivizes efficient performance.

FPI

Fixed-Price Incentive Contract

A Fixed-Price Incentive (FPI) contract sets a ceiling price and shares cost savings or overruns between the government and contractor based on a negotiated share ratio. It is a hybrid contract type that transfers more cost risk to the contractor than cost-reimbursement vehicles while still providing flexibility for programs with some cost uncertainty.

GSA Schedule

Multiple Award Schedule (MAS)

A GSA Schedule (Multiple Award Schedule or MAS) is a long-term, pre-negotiated government-wide contract vehicle managed by the General Services Administration that allows federal agencies — and many state and local governments — to purchase commercial products and services at pre-approved prices without conducting a full competitive procurement.

GWAC

Government-Wide Acquisition Contract

A GWAC is a pre-competed, multiple-award IDIQ contract that can be used by any federal agency to purchase IT products and services. GWACs eliminate the need for agencies to run their own competitions — they simply place task orders against an existing vehicle.

IDIQ

Indefinite Delivery / Indefinite Quantity

An IDIQ contract is a type of indefinite delivery contract that provides for an indefinite quantity of goods or services during a fixed period. The government places individual task orders (for services) or delivery orders (for products) against the contract as needs arise, up to a maximum ceiling value.

NASA SEWP

Solutions for Enterprise-Wide Procurement

NASA SEWP (pronounced "soup") is a government-wide acquisition contract (GWAC) managed by NASA's Goddard Space Flight Center that provides federal agencies a streamlined way to purchase IT products, services, and solutions. SEWP V — the current generation — is one of the highest-volume IT contract vehicles in the federal government, processing over $10 billion in orders annually.

OASIS+

One Acquisition Solution for Integrated Services Plus

OASIS+ is GSA's next-generation best-in-class (BIC) government-wide IDIQ contract vehicle for complex professional services. Replacing the original OASIS contracts, OASIS+ covers a broad range of service domains — from IT and engineering to financial, environmental, and management consulting — and is designed to be the government's primary vehicle for multi-disciplinary service acquisitions.

OTA

Other Transaction Authority

Other Transaction Authority (OTA) is a contracting mechanism used primarily by the Department of Defense that operates outside the Federal Acquisition Regulation (FAR). OTAs allow agencies to engage with non-traditional defense contractors, startups, and commercial companies that wouldn't normally bid on federal contracts.

SBIR / STTR

Small Business Innovation Research / Small Business Technology Transfer

SBIR and STTR are federal programs that fund small businesses to conduct R&D with commercial potential. SBIR is for individual small businesses; STTR requires a partnership with a research institution. Both programs award contracts in three phases, from feasibility studies to full commercialization.

SeaPort-NxG

SeaPort Next Generation

SeaPort-NxG (Next Generation) is the Navy's primary electronic platform for acquiring support services across 23 functional areas including engineering, financial management, program management, and IT. It is an IDIQ multiple-award contract vehicle that serves as the mandatory source for a wide range of Navy and Marine Corps service requirements.

Sole Source

Sole Source Contract

A sole-source contract is awarded to a single contractor without competition. Federal agencies can use sole-source authority when only one vendor can fulfill the requirement, or under specific small business programs (8(a), SDVOSB, HUBZone, WOSB) where statutory authority permits direct awards up to certain dollar thresholds.

T&M

Time and Materials Contract

A Time and Materials (T&M) contract pays the contractor fixed hourly labor rates plus actual material costs, with a ceiling price the contractor cannot exceed without a modification. T&M is used when the government cannot define the scope of work well enough to set a firm price.

Task Order / Delivery Order

Task Order / Delivery Order

A task order (for services) or delivery order (for products) is an individual order placed against an existing IDIQ contract, BPA, or GSA Schedule. Task orders define the specific scope, timeline, and price for a discrete piece of work within the broader contract vehicle.